California Code of Regulations › Title 4 - Business Regulations › Division 11 - California Pollution Control Financing Authority › Article 7 - Capital Access Program for Small Businesses › Section 8078.29 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In addition to the definitions in Section
				  8070, the following definitions
				  shall apply only to the Collateral Support Program, Sections 8078.29 to
				  8078.35 inclusive. To the extent
				  the definitions contained herein conflict with definitions contained in Section
				  8070, the definitions in this
				  section shall control for purposes of the Collateral Support Program.
(a) "Annual Fee" means the fee charged by the
				Authority for annual renewals of Collateral Support for lines of credit up to a
				total of 60 months.
(b) "Bridge
				Loan" means a loan needed prior to obtaining permanent financing or support,
				including Small Business Administration, 504 bridge loans, where the
				Participating Financial Institution is at increased risk pending future
				take-out financing or guarantee.
(c) "Collateral Support" or "Collateral
				Support Contribution" means an amount of cash deposit offered and underwritten
				by the Authority covering a collateral shortfall of a Qualifying Loan of an
				otherwise credit-worthy Borrower.
(d) "Collateral Support Program Approval"
				means the Authority's approval of Collateral Support for a Qualified
				Loan.
(e) "Collateral Support
				Program Request" means the request that a Participating Financial Institution
				must submit to the Authority to apply for Collateral Support.
(f) "Closing Fee" means the fee charged to
				the Borrower to participate in the Collateral Support Program when the
				Qualified Loan closes, based on the original amount and term of support, and
				type of Qualified Loan.
(g)
				"Default Notification" means the written notice that a Participating Financial
				Institution must submit to the Authority upon the default of an enrolled
				loan.
(h) "Final Approval" means
				the discretionary approval of the Collateral Support offered and underwritten
				by the Authority after the submission of final loan documents and payment of
				the Closing Fee by the Participating Financial Institution.
(i) "Final Enrollment" means loan enrollment
				in the Program after the submission of final loan documents and payment of the
				Closing Fee by the Participating Financial Institution after receiving the
				Initial Approval.
(j) "Initial
				Approval" means the discretionary, preliminary approval by the Authority of a
				Collateral Support Program Request submitted to the Authority, including any
				conditions, contingencies or additional parameters specified by the Authority
				necessary for Final Approval of the Collateral Support offered and underwritten
				by the Authority.
(k) "Program"
				means the Collateral Support Program.
(l) "Qualified Business" means the same as
				specified in Section
				8070, except that, together with
				affiliates, the Qualified Business may have 750 or fewer employees.
(m) "Qualified Loan" means the same as
				specified in Section
				8070, and any Small Business Loan,
				except that:
i. It may not be any loan that
				exceeds $20,000,000;
ii. The
				proceeds of the loan may not be disbursed to the Borrower prior to the
				Authority's Initial Approval; and
iii. The Participating Financial Institution
				must certify that the loan is being made to an otherwise credit-worthy Borrower
				with a strong credit profile that meets all the Participating Financial
				Institution's regular underwriting policy, but for a collateral
				shortfall.