Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 1 - Small Business Loan Guaranty Program › Chapter 1 - Loan Guaranty Policies › Section VII-103 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
Board -
Board of Directors of Louisiana
					 Economic Development Corporation.
Borrower -
also referred to herein as the
applicant/borrower
or
customer/borrower;
the
					 business person or entity borrowing and accepting the loaned funds from the
					 lender.
Corporation -
Louisiana Economic
					 Development Corporation.
Disabled Person's Business Enterprise -
a
					 small business concern which is at least 51 percent owned and controlled by a
					 disabled person, as defined by the federal Americans with Disabilities Act of
					 1990.
Financial Institution -
also referred to
					 herein as a
bank, financial lending institution, lending institution,
					 commercial lending entity,
or
lender
; includes any
					 insured depository institution, insured credit union, or community development
					 financial institution, as those terms are defined in §103 of the Riegle
					 Community Development and Regulatory Improvement Act of 1994 (12
					 U.S.C. 4702).
Lead Lender -
the bank or other lender
					 that makes or originates the loan with the borrower.
LED -
Louisiana Department of Economic
					 Development.
LEDC -
Louisiana Economic Development
					 Corporation.
Lender -
also referred to herein as the
applicant/lender;
the financial institution originating the
					 loan and providing the loan funds to the borrower.
Line of Credit
-Repealed.
Lender Insider
-an executive officer,
					 director, or principal shareholder of the lender, or a member of the immediate
					 family of an executive officer, director or principal shareholder of the
					 lender, or a related interest of such executive officer, director, principal
					 shareholder or member of the immediate family. For the purposes of this
					 provision, the terms executive officer, director, principal shareholder,
					 immediate family, and related interest shall have the respective meaning
					 ascribed thereto in Federal Reserve Act Sections 22(g) and (h), Federal Reserve
					 Board Regulation O and applicable Office of the Comptroller of the Currency or
					 Office of Thrift Supervision.
Loan
-the temporary provision of money or
					 funds for a business purpose, usually for a limited term and requiring the
					 payment of interest along with the repayment of the loaned funds. As used
					 herein, the word "loan" includes a line of credit loan guarantee, term loan
					 guarantee and loan participation.
Loan Guaranty
or
Guarantee
					 -
an agreement to pay the loan of another borrower, up to any limit in
					 the amount guaranteed as provided in the agreement, in case the original
					 borrower defaults in or is unable to comply with his repayment
					 obligation.
Loan Participation -
an agreement to
					 participate as a lender in a loan or to acquire from the lender a share or
					 ownership interest in a loan. A
purchase participation
or
purchase transaction
is one in which the state purchases a
					 portion of a loan originated by a lender; and a
companion
					 loan
, a
parallel loan
, or a
co-lending
					 participation
is one in which the lender originates a loan and the
					 state originates a second loan to the same borrower. (In the latter case, the
					 state's second loan may be subordinate or co-equal to the first loan originated
					 by the lender.)
Loan participations
enable the state to act as
					 a lender, in partnership with a financial institution lender, to provide small
					 business loans at attractive terms.
Permanent Full-Time Jobs -
refers to
					 direct jobs which are not contract jobs, that are permanent and not temporary
					 in nature, requiring employees to work an average of 30 or more hours per week.
Small and Emerging Business
-a Louisiana
					 business certified as a Small and Emerging Business (SEB) by the Louisiana
					 Department of Economic Development's Small Business Services.
Small Business Concern-
as defined by SBA
					 for purposes of size eligibility as set forth by  13 CFR 121.
AUTHORITY
					 NOTE: Promulgated in accordance with LA.
					 R.S.
					 51:2312.