Click here for PLP Forms & Manual.
How is an application underwritten?
WHEDA will give priority to economic development projects which:
What happens when WHEDA makes a decision?
When WHEDA approves a participation loan, a Loan Commitment Letter will be sent to the Participating Lender outlining the specific terms of WHEDA’s participation, including disclosure of the origination fee, expected closing date, and other contingencies. The Loan Commitment Letter must be signed and returned to WHEDA with one-half of the loan origination fee within thirty (30) days of the date of the Letter. WHEDA reserves the right to withdraw the commitment if the Letter and fee are not returned on a timely basis.
If the Participating Lender or borrower seek to modify any terms or conditions of the Loan Commitment Letter, a written request must be made prior to closing. WHEDA will consider the request, but may require additional information and/or seek the approval of one or more loan committees.
If WHEDA denies a participation loan, written notification will be provided to the Participating Lender. The notification will clearly provide the basis for the decision. WHEDA will reconsider its decision within thirty (30) days of the original decision if information can be furnished by the Participating Lender and/or borrower that materially affects the original application and supporting materials.
Eligible Uses of Loan Proceeds
How are approved participation loans serviced?
Arrangements for servicing of the loan will be made during the underwriting process. When WHEDA approves a participation loan, a Participation Agreement will be signed by both WHEDA and the Participating Lender providing the terms under which the loan will be serviced.
Servicing continues until the loan is paid in full or, in cases of default or nonperformance, until all workout and collateral options have been exhausted. The Servicer is responsible for monitoring the loan, collecting and applying payments, and ensuring collateral preservation.
Specific requirements relative to remittance of payment to either WHEDA or the Participating Lender, notification, access to files, and delinquency/default procedures will be negotiated and contained in the Participation Agreement.
What types of responsibilities will normally be part of the participation agreement?
This list is not intended to be comprehensive and other tasks and responsibilities may be enumerated in the Participation Agreement.