Section 5-21-5

Amounts of loans; eligibility.

(a) Pursuant to the plan, agricultural operations loans are limited to a maximum amount of one hundred thousand dollars ($100,000). Such loans shall be limited to a term of one year or less and the linked deposit on which any such loan is based shall have the same maturity date as the loan. In addition, an agricultural operation must qualify as an eligible agricultural operation, as defined in Section 5-21-3 hereof, in order to be eligible for such a loan. An eligible agricultural operation may receive up to one hundred thousand dollars ($100,000) per year in linked deposit loans over a period of four years.

(b) Pursuant to the plan, the maximum amount for a business operation loan is five hundred thousand dollars ($500,000). The linked deposit upon which any business operations loan is based shall not be for a term longer than two years. In the event that the lending institution and the borrower agree to a longer term for the loan, then the interest rate charged to the borrower for the term of the loan beyond the initial two-year period shall be agreed to by the lending institution and the borrower without restriction by this chapter. The proceeds of any such business loan may be used for either working capital or fixed asset financing.

(c) In addition to the requirements of this section and to those requirements of Section 5-21-3(6), an eligible business operations loan borrower must demonstrate to the lender that an overall expected benefit of the loan is the creation or sustaining of at least one job for every fifteen thousand dollars ($15,000) of loan proceeds for loans up to two hundred fifty thousand dollars ($250,000) and one job for every ten thousand dollars ($10,000) from loans of two hundred fifty thousand dollars ($250,000) to five hundred thousand dollars ($500,000).

(Acts 1988, No. 88-162, p. 256, §5; Acts 1995, No. 95-257, p. 430, §1; Act 99-659, 2nd Sp. Sess., §1.)