2006 Massachusetts Code - Chapter 23D — Section 13. Application for financing from trust; review; approval or denial.

Section 13. Any business or person seeking financing from the trust shall submit to the executive director a complete application for financing and any other information as the board shall request.

The board shall review the application for financing, and based upon the information submitted and such additional investigation as the trustees may deem necessary, approve or deny said application subject to the following requirements:

(a) Before approving an application for assistance in connection with the purchase of a troubled business, the board shall determine and incorporate in its minutes that:

(1) the business is likely to experience a large loss of employment, plant closure, or failure without the loan financing or investment by the trust;

(1A) the business within a specific mature industry requires assistance for the purpose of technological investment or upgrading of management operations in order for the business to maintain future economic stability;

(2) the business or person seeking to purchase the business has taken or will take such actions as the board deems necessary to insure the business has a reasonable chance to continue as a successful business, including, but not limited to, changes in its operations, financing, or management and that said actions are included as a condition for financing by the trust in the financing agreement; and

(3) the business or person seeking to purchase the business has made diligent efforts to obtain the financing necessary to continue its operations or transfer ownership of the business from private financial institutions and public economic development agencies, and such financing is unavailable or has been offered on terms that would prevent the successful continuation or change in ownership of the business.

(b) Before approving an application for assistance in connection with an employee-owned business or an employee-ownership project, the board shall consult with the director and after receiving the recommendation of the director, shall determine and incorporate in its minutes that:

(1) the business or person seeking assistance has taken or will take such actions as the board and the director deem necessary to insure that the employee-ownership project has a reasonable chance to succeed; and

(2) except with respect to assistance for pre-feasibility and feasibility studies, that such business or person has made diligent efforts to obtain the financing necessary to institute or implement the employee-ownership project from private financial institutions and public economic development agencies, and such financing is unavailable or has been offered on terms that would prevent the successful institution or implementation of the project.