Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 9 - Micro Loan Program › Chapter 76 - SSBCI Micro Lending Program ARPA 2021 › Section VII-7603 - 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.
Corporation-
Louisiana Economic Development
					 Corporation.
CDFI-Community Development Financial Institution
					 -
has the meaning given that term under section 103 of the Riegle
					 Community Development and Regulatory Improvement Act of 1994
CDFI Investment Area-
defined in
					 12
					 C.F.R. §
												1805.201(b)(3)(ii)
					 -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.
Eligible Loan
-a loan or line of credit
					 commitment made by the lender to the borrower which meets the established SSBCI
					 criteria.
Enrolled Loan
-a loan enrolled by the
					 Lender to a Borrower pursuant to the terms of the Lender Participation
					 Agreement whereby the eligible loan has been accepted in writing by
					 LEDC.
LED-
Louisiana Department of Economic
					 Development.
LEDC-
Louisiana Economic Development
					 Corporation.
Lender-
for purposes of this Program
					 Chapter, also referred to herein as the
lender;
the Community
					 Development Financial Institution or other qualifying lender sharing a similar
					 mission driven focus as this program and who has been approved by LED as a
					 participating MLP lender to originate the loan and provide the loan funds to
					 the Borrower.
Lender Insider
-means 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 or term loan
					 originated by a participating CDFI, or other participating lender, of this
					 chapter.
Lender Loan Documents
-written
					 documentation evidencing an Enrolled Loan from the Lender to the Borrower
					 pursuant to the Micro Loan Program describe herein and includes, but is not
					 limited to, a loan agreement, note, mortgage, security agreement and guaranty
					 agreement.
Maximum Enrolled Loan Amount
-the aggregate
					 outstanding amount of $500,000 for any enrolled loans or loans of a borrower or
					 any common enterprise in which the borrower has an ownership interest.
Micro Loans
-those loans ranging in size
					 from $1,000 to $100,000.
Micro Lending Program (MLP)-
an OSCP
					 program approved by Treasury which is the subject of this Chapter
Passive Real Estate Ownership
-ownership of
					 real estate for the purpose of deriving income from speculation, trade or
					 rental, except that such term shall not include:
a. the ownership of that portion of real
				  estate being used or intended to be used for the operation of the business of
				  the owner of the real estate; or
b.
				  ownership of real estate for the purpose of construction or renovation, until
				  the completion of the construction or renovation phase.
Small Business Concerns
-for purposes of
					 size; eligibility for this program will be limited to businesses with 100
					 employees or less.
Socially and Economically Disadvantaged Individual
					 (SEDI) Owned Business
-
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 Executive Order 13985;
b. business enterprises that certify that
				  they are owned and controlled by individuals where residences are in CDFI
				  investment Areas, as defined in
				  12
				  C.F.R. §
												1805.201(b)(3)(ii);
c. business enterprises that certify that
				  they will operate a location in a CDFI Investment Area, as defined in
				  12
				  C.F.R. §
												1805.201(b)(3)(ii);
				  or
d. business enterprises that are
				  located in CDFI Investment Areas, as defined in
				  12
				  C.F.R. §
												1805.201(b)(3)(ii).
Very Small Business-
a business with fewer
					 than 10 employees; may include independent contractors and sole
					 proprietors