68:02:02:21Factors for board action.

When making a decision on an application, the board may, in addition to other factors necessary to make a prudent loan decision, consider the following: (1) The concept is new technology or a new application of existing technology with a reasonable assurance that the concept will work; (2) Preliminary market and feasibility research has been conducted by the applicant or others, and there is a reasonable assurance of a potential market; (3) The applicant has demonstrated the ability to manage the commercialization of the concept and has prepared a commercialization development plan; (4) There is favorable community support for the project; (5) There are favorable recommendations for the project from local economic development groups, university-based technical specialists, or other qualified service providers; (6) There are adequate references available to determine the applicant's qualifications and background; (7) The applicant demonstrates a personal commitment to the project; (8) The capacity of the applicant to repay a loan if awarded, including the amount of the loan, the economic feasibility of the project and product; the ability of the applicant to service the debt from cash flow of operations, capital, or collateral; the review of the financial status of the project, business plan, and applicant; the satisfaction of engineering, legal and environmental regulations; and the availability of necessary utilities; (9) The amount, terms, and conditions of the loan, if awarded, and compatibility with the needs of the business and the VASF; (10) There is an adequate and realistic budget projection; (11) Compatibility with economic development plans of the area and state; and (12) The balance remaining in the VASF.

Source: 34 SDR 68, effective September 13, 2007.