HAR §15-120-10. Loan application procedure

(a) All persons applying for loans shall utilize the department's designated loan application form, or the appropriate SBA forms which may be obtained from a commercial bank or the local SBA office. (b) All financial statements submitted by an applicant shall show the applicable date ofthe information given and shall be signed and certified by the proprietor, pa1iner, or a licensed public accountant. The depatiment may require an audited statement. The department may also require that financial statements accompanying an application include balance sheets and profit and loss statements for the past five tax years, a yeru·-to-date interim financial statement dated no later than ninety days prior to the application date, tax returns, and other documents or infmmation deemed necessru·y by the depruiment or the council. (c) The applicant's proposed business plans, except financial statements or personal info1mation, shall be reviewed by the council to assess whether the proposed community-based economic development activity or community-based enterprise is likely to achieve the purposes ofthis chapter. 120-6 1 \~; h2 1 § 15-120-8 (d) The department shall approve a loan only where the applicant can provide reasonable assurance that the loan can and will be repaid pursuant to its terms. Reasonable assurance ofrepayment shall be based upon consideration of the applicant's record ofpast loan activity, past earnings, or projections offuture earnings which indicate that the applicant will be able to repay the loan from the income ofthe business. (e) Information on applications meeting the requirements enumerated in this chapter shall be reviewed by the council. Financial statements or personal information shall be withheld from review by persons other than the director or the director's authorized staff. The council shall assess whether the proposed community-based economic development activity or community-based enterprise is likely to achieve the purposes ofthis chapter. The council shall make recommendations to the director regarding the acceptability ofthe proposed business concept. Final approval or disapproval ofthe loan application shall be made by the director. (f) An applicant shall not be required to pay any fees in connection with filing an application but shall be required to pay for such costs as appraisals, title searches, documentation and recordation of mortgages, and any other work required in processing the loan which is not perfo1med by the depa1iment. At the discretion ofthe department, an applicant may be responsible for hiring independent appraisers to determine the value ofcapital assets or to assess the economic feasibility ofa business operation. [Eff MAY 1:5 CM: HRS §210D­ 8) (Imp: HRS §210D-8)