Qualified Organization

(1) The Qualified Organization shall use Program Funds to make Loans to Qualifying Businesses for the purpose of starting and expanding their businesses. The Program Administrator shall disburse the funds to Qualified Organizations across all areas of the State of Tennessee, thereby expanding opportunities for Qualifying Businesses throughout Tennessee. (2) Selection of Qualified Organizations. SMALL AND MINORITY-OWNED BUSINESS ASSISTANCE PROGRAM CHAPTER 1700-6-1 Rule 1700-6-1-.10, continued (a) Process. The Program Administrator shall assist the Department with the selection of Qualified Organizations. Such selection shall be a competitive process. Factors to be considered in such selection shall include, but are not limited to: 1. Qualifications. Selected organizations must have individuals who have demonstrated qualifications in lending activities. 2. Experience. Selected organizations should reflect a history of lending activities of the type envisioned for the Program. Organizations should be able to demonstrate their track record of originating loans to Qualifying Businesses and the level of success in repayment of such loans. 3. Loan Servicing. Selected organizations must have a demonstrated ability and history of successfully servicing loans of the type envisioned for the Program. 4. Commitment to adhere to Program Requirements. Selected organizations must indicate a commitment and ability to comply with the Program intent and requirements, including reporting. 5. Underwriting practices. Selected Qualified Organizations shall utilize underwriting practices based upon the need of the Program’s target group (small and minority-owned businesses). Based on the intent of the Program, traditional underwriting practices may not address needs of this target group. (b) Match Preferred. In selecting Qualified Organizations, preference shall be given to organizations that are able to match funding provided through the Program. (c) The specific responsibilities and requirements of the Qualified Organization shall be contained within the contract executed by the selected organization and the Department. (3) Reporting. (a) Qualified Organizations. Each selected Qualified Organization shall provide a monthly written report to the Program Administrator as specified in the contract. The report may contain summary information on the amount of funds disbursed during the period, the amount of interest and principal repaid during the period, and the balance of the Program Fund’s loan with such organization. The report may also list the companies or individuals receiving loans with Program Funds along with, for each company, the original principal amount, the remaining principal owed, the monthly payment amount broken down into principal and interest, the current payment due date, the amount and date of the last payment, and such other information as the Program Administrator deems necessary. The report may also contain a listing, along with appropriate data, of companies or individuals that have principal or interest payments in arrears, as well as other comparable information that may be approved by the Department. (b) Program Administrator. The Program Administrator shall provide a monthly written report to the Department, which summarizes the activities of each Qualified Organization, including totals for all organizations combined. Within such report, the Program Administrator shall identify any instances of non-compliance with Program requirements or contractual provisions. The Program Administrator shall report other information that may be requested by the Department.