California Code of Regulations › Title 4 - Business Regulations › Division 11 - California Pollution Control Financing Authority › Article 7 - Capital Access Program for Small Businesses › Section 8078.24 - Loan Enrollment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				terms and conditions of the Qualified Loans, including rates, and fees, shall
				be determined solely by agreement between the Participating Financial
				Institution and the Borrower.
(b) A
				Participating Financial Institution shall be authorized to enroll under the
				Program all or a part of any Qualified Loan by notifying the Authority in
				writing, within 15 business days after the Qualified Loan is made, that the
				Participating Institution is enrolling a Qualified Loan. For purposes of this
				section, the date on which the Participating Financial Institution makes a
				Qualified Loan is the date on which the Participating Financial Institution
				first disburses proceeds of the Qualified Loan to the Borrower.
(c) The notification to the Authority shall
				include at least the following information:
(1) Borrower name, which includes the
				Borrower's legal name and the name by which the Borrower does business, if any,
				and the business address.
(2) Brief
				description of the Borrower's business and regular activities, Census Tract
				Number associated to the Borrower's business address, and the location of the
				facilities being financed if different, the NAICS Code(s) applicable to
				Borrower's business, and the amount of its average annual revenue for the past
				three (3) years.
(3) Whether this
				business has been open for two (2) years or more, and is owned by one of the
				following: a woman, minority, or veteran.
(4) Brief summary of the intended use of the
				proceeds of the Qualified Loan consistent with Eligible Purchases, including
				the tractor model, engine model and fuel type of each vehicle, the model of
				each trailer or diesel particulate filter, and the number of each Eligible
				Purchase.
(5) Amount of the
				Qualified Loan being enrolled in the Program, the total amount of loan, and the
				Participating Financial Institution loan number.
(6) Whether the Qualified Loan is secured or
				unsecured, and whether it is a term loan or TRAC lease.
(7) Date of the Qualified Loan, based on the
				first disbursement of proceeds to the Borrower.
(8) Interest rate applicable to the Qualified
				Loan.
(9) Term or maturity date of
				the Qualified Loan.
(10)
				Certification by the Participating Financial Institution of the following:
(A) The Borrower has validated the number of
				employees currently employed by the Borrower.
(B) The loan is a Qualified Loan for Eligible
				Costs, and that the business receiving the Qualified Loan is a Qualified
				Business.
(C) The Borrower's
				business activity has its Primary economic effect in California, and the
				vehicle is registered in California, substantiated by the California Department
				of Motor Vehicles.
(D) Upon request
				by the Executive Director, the Participating Financial Institution shall
				provide information from the financial records of the Borrower, including
				documents validating the Borrower's establishment of a business entity, and
				that the Participating Financial Institution has obtained the consent of the
				Borrower to such disclosure.
(E)
				The total amount of loans for the borrower enrolled in the CalCAP/ARB Program
				does not exceed $2,500,000 over a three year period.
(F) The Participating Financial Institution
				has obtained a written representation from the Borrower that the Borrower has
				no legal, beneficial or equitable interest in the CalCAP/ARB
				Contribution.
(G) The Participating
				Financial Institution has validated that the Borrower has secured all
				applicable licenses and permits to conduct its business.
(H) The lending activities of the
				Participating Financial Institution are subject to any applicable safety and
				soundness standards as set forth in applicable lending regulations.
(I) The Participating Financial Institution
				has not, and will not, enroll the Qualified Loan, or any portion thereof, in
				any other government program substantially similar to the Program.
(J) No portion of the loan is a
				Refinance.
(K) The Participating
				Financial Institution has provided the Borrower the Authority's Privacy Notice
				for the CalCAP/ARB On-Road HDV Air Quality Loan Program, which provides the
				notice required under the California Information Practices Act (Civil Code
				section
				1798.17). The
				Privacy Notice informs the Borrower that personal information protected by the
				CIPA may be disclosed under the following circumstances:
(i) To consultants, auditors or contractors
				retained by the Authority or ARB where disclosure is required to fulfill
				CalCAP/ARB Program requirements and subject to a nondisclosure
				agreement;
(ii) To another
				governmental entity where required by state or federal law; or
(iii) As otherwise required by
				law.
(L) The
				Participating Financial Institution will make available to the Authority all
				books and records related to the use of the funds in the Loss Reserve
				Account;
(M) The Participating
				Financial Institution shall be authorized to certify to the information
				requested under subdivisions (c)(10)(A), (B), (C), (D), (F), (G), and (H) based
				upon the Participating Financial Institution's established due diligence and
				underwriting standards applied in the regular course of business, and shall
				maintain substantiating documentation in the Borrower's loan
				file.
(11) The submittal
				of a completed Borrower's Eligibility Criteria and Self-Certification form in
				which the Borrower certifies that:
(A) The
				Borrower is using the proceeds to purchase on-road heavy duty diesel vehicle(s)
				or other Eligible Purchases to comply with ARB's Statewide In-Use Truck and Bus
				Regulation as defined in Section
				2025, Title 13, of the California
				Code of Regulations;
(B) The
				Borrower's business activities have a Primary economic effect in
				California;
(C) The Borrower agrees
				to allow the Participating Financial Institution to provide information from
				financial records of the Borrower upon request of the Executive
				Director;
(D) The Borrower has no
				legal, beneficial, or equitable interest in the CalCAP/ARB
				Contribution;
(E) The Borrower
				meets state and federal requirements to operate in California and that the
				Borrower has secured all applicable licenses and permits needed to conduct
				business;
(F) The enrolled amount
				of the loan in this Program is limited to Eligible Purchases;
(G) The Borrower agrees to allow the
				Authority or its designee to review all information in the loan file maintained
				by the Participating Financial Institution;
(H) The Borrower either has or has not
				received any grants or vouchers through the ARB's Proposition 1B Goods Movement
				Emission Reduction program, the ARB's Carl Moyer On-Road Heavy Duty Vehicle
				Voucher Incentive program or the ARB's Hybrid and Zero-Emission Truck and Bus
				Voucher Incentive project for the financed vehicle(s);
(I) The Borrower agrees to allow ARB staff or
				its designee to inspect the affected vehicle(s);
(J) The Borrower does not have a total
				enrolled principal amount in excess of $2,500,000 at any CalCAP Participating
				Financial Institution over a three (3) year period;
(K) The Borrower has received CPCFA's
				CalCAP/ARB Privacy Notice and that the Borrower is not any of the following: an
				executive officer, director, or principal shareholder of the Participating
				Financial Institution; a member of the immediate family of any of those
				individuals; or a related interest of those individuals; and
(L) The accuracy of specific information
				regarding the fleet size, the vehicle, and equipment, including: truck(s) gross
				vehicle weight rating, engine manufacturer, model year, and horsepower,
				replacement truck(s), device(s) manufacturer, and model and technology
				type.