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<br />Staff recommends the Board request the GeneriU Assembly to amend the Colorado Revised <br />Statutes relative to the Small Project Loan Fund as shown in the attached statute revisions. <br /> <br /> <br />Staff is proposing the small project loan fund be revised to allow loans up to $1,000,000 <br />to be approved and authorized by the Board, at any time during the year, without legislative .. <br />authorization. 85% of the Construction Fund and Severance Tax loan applications during the . <br />past 5 years have been for less than $1,000,000. This proposal allows those projects with <br />relatively short planning periods to receive a loan authorization to construct their project at the <br />time when they most need the funds, If an applicant misses the loan application deadline under <br />the current process, the project must be delayed by almost eighteen months before funds become <br />available during the next application and legislative' cycle. Those large projects with long <br />planning horizons would continue to follow the legislative authorization process. <br /> <br />By eliminating the "hardship" clause in the existing statute it literally enhances the <br />opportunities for more potential borrowers to receive loans in a timely manner. The current <br />legislative process literally creates a hardship for most borrowers simply due to the length of time <br />necessary to complete it. <br /> <br />Senate Bill 98-078 allowed the Water and Power Authority to make financing available <br />for "small water resource projects" up to $25,000,000 without legislative approval. This enables <br />the Authority to have a distinct "process" advantage over the CWCB relative to customer loan <br />applications. The Division of Local Govemment and Rural Development in the U.S. Dept. of <br />Agriculture also make loan funds available throughout the year. <br /> <br />Recommendation <br /> <br />e <br /> <br />.e <br />