Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 1 - Small Business Loan Guaranty Program › Chapter 5 - SSBCI Loan Guaranty ARPA 2021 › Section VII-503 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Terms not
				  otherwise defined in this Chapter shall have the same meaning given to them in
				  prevailing federal guidelines issued by the U.S. Treasury, unless the context
				  clearly requires otherwise.
B. In
				  this Chapter, the following terms shall have the meanings provided herein,
				  unless the context clearly indicates otherwise.
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.
CDFI-Community Development Financial Institution
					 (CDFI)-
has the meaning given that term under Section 103 of the Riegle
					 Community Development and Regulatory Improvement Act of 1994.
CDFI Investment Area-
areas defined by
					 CDFI which are generally low-income, high-poverty geographies that receive
					 neither sufficient access to capital nor support for the needs of small
					 businesses, including minority-owned businesses. For purposes of SSBCI,
					 Treasury has determined that the entirety of American Samoa, Guam, the Northern
					 Mariana Islands, and the U.S. Virgin Islands constitute a CDFI Investment
					 Area.
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 Section 103 of the Riegle Community
					 Development and Regulatory Improvement Act of 1994 (12 U.S.C.
					 4702).
Lead Lender-t
he 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.
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 C.F.R. 121.
Socially and Economically Disadvantaged Individual
					 (SEDI) Owned Business
-(for the purposes of this program)
a. business enterprises that certify that
				  they are owned and controlled by individuals who have had their access to
				  credit on reasonable terms diminished as compared to others in comparable
				  economic circumstances, due to their
i.
				  membership of a group that has been subjected to racial or ethnic prejudice or
				  cultural bias within American society;
ii. gender;
iii. veteran status;
iv. limited English proficiency;
v. physical handicap;
vi. long-term residence in an environment
				  isolated from the mainstream of American society;
vii. membership of a federally or
				  state-recognized Indian Tribe;
viii.
				  long-term residence in a rural community;
ix. residence in a U.S. territory;
x. residence in a community undergoing
				  economic transitions (including communities impacted by the shift towards a
				  net-zero economy or deindustrialization); or
xi. membership of another
underserved
				  community
as defined in U.S. Executive Order 13985;