State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-472_105

§ 143B‑472.105. Contract performance assistance authorized.

(a)        Type. – TheAuthority is authorized to provide the following contract performanceassistance:

(1)        A guarantee of aloan made to the applicant.

(2)        If the applicantdemonstrates to the satisfaction of the Authority that it is unable to obtainmoney from any other source, a loan to the applicant.

(b)        Qualification. – TheAuthority shall not lend money to an applicant or guarantee a loan unless allof the following requirements are met:

(1)        The applicant meetsthe requirements of G.S. 143B‑472.78.

(2)        The loan is to beused to perform an identified contract, of which the majority of funding isprovided by a government agency or a combination of government agencies.

(3)        The loan is to beused for working capital or equipment needed to perform the contract, the costof which can be repaid from contract proceeds, if the Authority has enteredinto an agreement with the applicant necessary to secure the loan or guaranty.

(c)        Terms andConditions. – The Authority shall set the terms and conditions for loans andfor the guarantee of loans. When the Authority lends money from the SmallBusiness Contract Financing Fund, it shall prepare loan documents that includeall of the following:

(1)        The rate of intereston the loan, which shall not exceed any applicable statutory limit for a loanof the same type.

(2)        A payment schedulethat provides money to the applicant in the amounts and at the times that theapplicant needs the money to perform the contract for which the loan is made.

(3)        A requirement that,before each advance of money is released to the applicant, the applicant andthe Authority must cosign the request for the money.

(4)        Provisions forrepayment of the loan.

(5)        Any other provisionthe Authority considers necessary to secure the loan, including an assignmentof, or a lien on, payment under the contract, if allowable.

(d)        Maturity. – A loanmade by the Authority shall mature not later than the date the applicant is toreceive full payment under the identified contract, unless the Authoritydetermines that a later maturity date is required to fulfill the purposes ofthis Part.

(e)        Diversity. – Inselecting applicants for assistance, the Authority must consider the need toserve all geographic and political areas and subdivisions of the State.

(f)         Limitation. – Thetotal amount of loan guarantees and loans issued to each recipient during afiscal year shall not exceed fifteen percent (15%) of the amount of money inthe Fund as of the beginning of that fiscal year. (2007‑441, s. 1.)