FINANCIAL CONSIDERATIONS
§ 73.31. Industrial development projects.
(a) An industrial development project may be sold or leased only to a responsible buyer or a responsible tenant. A responsible buyer or responsible tenant shall have the financial ability to repay the Authority’s loan and the financial ability to repay working capital and equipment financing necessary for the establishment and operation of a completed project.
(b) The application for an industrial development project shall include financial statements of the proposed responsible buyer or responsible tenant, parent company and proposed guarantors, if any. The specific form of financial statements and other documentation required to be filed are set forth in the Authority’s statement of policy in Subchapter B (relating to statement of policy).
(c) The application for an industrial development project which involves a new entity as a responsible buyer or responsible tenant will require the submission of personal financial statements from the major investors and the submission of pro forma balance sheets and projected income statements and cash flows for the new entity. The specific form of financial statements and other documentation required to be filed are set forth in the Authority’s statement of policy in Subchapter B.
(d) Financial statements submitted to the Authority shall be prepared by an independent certified public accountant, unless specifically waived in writing by the Authority.
(e) In determining whether a responsible buyer or responsible tenant exists, the Authority will consider the following financial factors:
(1) Form and content of financial statements, whether audited, reviewed or compiled.
(2) Equity of the responsible buyer or responsible tenant and guarantors, if any, in relation to the total project cost.
(3) Income in relation to the total project cost.
(4) Extraordinary items of income and expenses reflected in the statements of income.
(5) Cash flow in relation to project debt service.
(6) Current working capital ratio.
(7) Total debt to equity ratio.
(8) Trends of sales and net income.
(9) Contingent liabilities.
(10) Financial ability to adequately finance the working capital and equipment requirements of the industrial development project.
(11) Industry factors relevant to a particular industrial development project.
(12) Other factors determined by the Authority to be relevant to a particular application.
(f) The Authority will require, for a loan made by the Authority, security or collateral sufficient to adequately guarantee repayment of the Authority loan. The security required for any particular loan will be determined by the Authority on a case by case basis utilizing sound principles of lending practice. The type of security that may be required by the Authority is set forth in the Authority’s statement of policy in Subchapter B.
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