Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 13 - Collateral Support Program › Chapter 91 - SSBCI Collateral Support Program ARPA 2021 › Section VII-9103 - 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.
Accepted Loan
-a loan accepted by LEDC as
					 eligible under the collateral support program (CSP).
Affiliate of the Borrower
-any person or
					 entity directly or indirectly controlled by the borrower or directly or
					 indirectly controlling the borrower or under common control with the borrower.
					 For purposes of this definition, a person controls another person if such
					 person directly or indirectly, or acting through or in concert with one or more
					 persons:
a. owns, controls, or has the
				  power to vote twenty percent (20 percent) or more of any class of voting
				  securities or interests of the other person;
b. controls in any manner the election or
				  appointment of a majority of the directors or management of the other person;
				  or
c. has the power to exercise a
				  controlling influence over the management or policies of the other person.
Affiliate of the Lender
-any person or
					 entity directly or indirectly controlled by the lender or directly or
					 indirectly controlling the lender or under common control with the lender. For
					 purposes of this definition, a person controls another person if such person
					 directly or indirectly, or acting through or in concert with one or more
					 persons:
a. owns, controls, or has the
				  power to vote 20 percent or more of any class of voting securities or interests
				  of the other person;
b. controls in
				  any manner the election or appointment of a majority of the directors or
				  management of the person; or
c. has
				  the power to exercise a controlling influence over the management or policies
				  of the other person.
Board-
the Board of Directors of Louisiana
					 Economic Development Corporation (LEDC).
Borrower
-an eligible borrower which is the
					 recipient of a loan which is, has been, or will be registered by the lender
					 under the CSP for collateral support through a collateral deposit
					 account.
Business Day
-any day other than a
					 Saturday, Sunday, or any other day on which commercial banks in Louisiana are
					 required or authorized to be closed.
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-
as defined by
					 Treasury for the SSBCI Program, 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.
Collateral Deposit Account
-the interest
					 bearing account or certificate of deposit opened with lender in the name of
					 LEDC pledged as collateral for an accepted eligible loan.
Corporation-
the Louisiana Economic
					 Development Corporation (LEDC).
CSP
-the Collateral Support Program.
CSP Application
- program application for
					 the collateral support request where the lender and borrower each sign and
					 agree to abide by the assurances and certifications as required by the U.S.
					 Treasury.
CSP Collateral Analysis Form
-form
					 completed by the lender evaluating the borrower's collateral value
					 position.
CSP Claim Form
-form completed by the
					 lender to LEDC in the event of a default and subsequent loan loss.
Default-
delinquent in making payment, when
					 due, of any installment of principal or interest on any note, for a period of
					 more than 90 days.
Eligible Borrower
-a Louisiana business
					 enterprise which meets all requirements of federal law and the CSP.
Eligible Loan
-a loan (or a line of credit)
					 that meets the criteria for an eligible loan under the CSP in effect at the
					 time the loan is registered and for which each of the assurances,
					 representations and warranties set forth in the CSP is true and correct.
Enrolled Loan-
a loan (or a line of credit
					 loan) which has been approved for acceptance in the CSP and in which the loan
					 instruments have been fully executed.
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).
LED-
the Louisiana Department of Economic
					 Development (LED).
LEDC-
the Louisiana Economic Development
					 Corporation (LEDC).
LEDC CSP Loan and Deposit Agreement
-the
					 loan and deposit agreement ("deposit agreement"), to be executed by LEDC and
					 the lender, for the deposit of cash collateral by LEDC with the lender, as
					 security for a portion of the loan accepted under this program.
Lender-
an insured depository institution,
					 insured credit union, or community development financial institution, as those
					 terms are each defined in section 103 of the Riegle Community Development and
					 Regulatory Improvement Act of 1994 (12 U.S.C.
					 4702) which is experienced in the making of
					 loans to businesses of the type provided for under the CSP, has an office and
					 business operations in the State of Louisiana, and is regulated by the Office
					 of the Comptroller of the Currency (including by merger, the Office of Thrift
					 Supervision), the Federal Reserve Board, the Louisiana Department of Finance or
					 similar regulatory agency. All participating lenders must execute a lender
					 Participation Agreement with LEDC; and is the entity that will make or
					 originate the accepted eligible loan with the eligible borrower under this
					 program.
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-
any temporary advance or provision of
					 money to an eligible borrower by the participating lender for a business
					 purpose, usually for a limited term and requiring the payment of interest along
					 with the repayment of the loaned funds under the CSP, that is evidenced by a
					 promissory note that obligates the borrower to repay the advance. When used
					 herein, the word loan includes a line of credit loan.
Loss-
any principal amount due and not paid
					 at a time the lender determines in a manner consistent with its normal method
					 and timetable for making such determinations that a qualified loan is
					 uncollectible and is to be charged off as a loss. The amount included in the
					 loss shall not exceed the unpaid principal balance of the enrolled loan.
Master Lender CSP Participation Agreement-
agreement between lender and LEDC accepting the lender as an approved CSP
					 participating lender whereby the Participating lender agrees to program
					 assurances and certifications as required by the U.S. Treasury.
Net Proceeds of the Loan
-the gross loan
					 amount less costs incurred in issuing the loan which are paid by the borrower
					 out of the gross loan amount.
Participating Lender-
a financial
					 institution that has executed an agreement with the Louisiana Economic
					 Development Corporation (LEDC) to participate in the program.
Program-
the collateral support
					 program.
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-
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 by Treasury for the SSBCI Program;
c. business enterprises that certify that
				  they will operate a location in a CDFI Investment Area, as defined by treasury
				  for the SSBCI Program; or
d.
				  business enterprises that are located in CDFI investment areas, as defined by
				  the U.S. Treasury for the SSBCI Program.
Very Small Business-
a business with fewer
					 than 10 employees; may include independent contractors and sole
					 proprietors.