LAC 4:XXV.105. Process for Obtaining Loan from the Fund

A. The applicant shall transmit an application to the fund manager. The application shall be in the form established by the fund administrator. B. Such application should contain the following: 1. name of the applicant and eligible charter school, including: a. name of primary contact for applicant and names of executive leadership and board members; b. physical address; c. mailing address; d. email of chief administrative officer; e. phone number; and f. signed attestation that applicant and applicant’s leadership have met the requirements set forth in LAC 28:CXXXIX.503.A.3.a (Bulletin 126 – Charter Schools). 2. articles of incorporation and current bylaws for applicant and eligible charter school; 3. resumes of key staff members (e.g., Chief Executive Officer, President, Operations Manager, Chief Financial Officer, Principal, etc.) of the eligible charter school; 4. current charter contract; 5. current adopted budget of the applicant and eligible charter school (if different than applicant) with projected revenue and expenditures to fiscal year end; 6. financial statements of the applicant and eligible charter school; 7. Multi-year budget projections for at least the five fiscal years beyond the first fiscal year for which the Applicant is applying in the form provided by the fund administrator. Budget projections must include projected enrollment by grade, written budget assumptions, a staffing model, and demonstrate applicant’s ability to service loan costs and repay loan; 8. a list of the total amounts outstanding, annual amounts, interest rates, and maturity dates of all existing and anticipated short- and long-term debt obligations of the Applicant and eligible charter school; 9. a list of historical, current, and anticipated future funding through private contributions, state, or federal grant awards; 10. a list of assets not identified in financial statements; 11. sources of funds, security and collateral, and evidence of ability to repay the loan requested; 12. schedule for completion of the project in form provided by the fund administrator, including timeline for design, permitting, bidding, financing (if other sources required), construction, and first day of school; 13. the estimated cost of the project, including a detailed sources and uses table in the form provided by the fund administrator identifying all eligible costs of the loan; 14. the plan or process for procurement of each use provided above in accordance with public bids for the erection, construction, alteration, improvement, or repair of a public facility or immovable property pursuant to R.S. 17:3996(B)(19); and 15. the requested maximum principal amount of loan as a per-pupil funding request. C. The fund manager in its review and approval of the application shall ensure all financial and project information is included in the application. D. Upon acceptance of the application, the fund manager will review the application with the applicant. E. Prior to beginning diligence and underwriting, the fund manager will review the application with the department of education. The department of education will provide any available reports to the fund manager including back-ground checks, and the applicant’s most recent Fiscal Risk Assessment and Annual Review Report demonstrating the eligible charter school’s most recent academic, financial, and organizational performance ratings. F. Upon satisfactory review of the reporting provided by the department of education, the fund manager will begin diligence and underwriting of the application. Once concluded, the fund manager will provide a credit recommendation describing the type of loan, its security, collateral, maximum principal amount, and other loan terms to the fund administrator for review and approval. G. Upon approval from the fund administrator, the fund administrator shall execute a loan agreement with the fund applicant containing the details set forth in the application. H. Payments from the fund shall be made by the fund administrator in a lump sum to the fund manager in accordance with the loan agreement. The fund manager will then make advances to the loan recipient as described in the loan agreement. Such payments shall not exceed the maximum principal amount as established in the loan agreement.