reglab/statecodes huggingface dataset:
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6107 - Eligibility

Current through Register Vol. 50, No. 6, June 20, 2024
A. Small business
				  concerns as defined by SBA for purposes of size eligibility as set forth by  13
				  CFR 121.
B. Small businesses whose
				  owner(s) or principal stockholder(s) shall be a resident of Louisiana, and the
				  business is domiciled in Louisiana with preference given to certified minority
				  businesses, women-owned businesses, or businesses owned by disabled
				  persons.
C. An assignable contract
				  for goods or services with a federal, state, or local entity.
AUTHORITY NOTE:
					 Promulgated in accordance with R.S. 51: 2312(A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6109 - General Loan Provisions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Only
				  one contract loan will be allowed for any one borrower at any one time. A
				  borrower may apply for additional contract loans only after the full repayment
				  of any previous contract loan is complete.
B. The Louisiana Economic Development
				  Corporation will be guided by the following general principles in making loans.
1. Funding requests will only be considered
				  for supporting contracts for goods and services provided to federal, state, or
				  local entities.
2. Proceeds of the
				  loan shall not be used for any of the following purposes:
a. repayment of debt to or the cashing out of
				  any stockholder or principal of the business;
b. repayment of any personal debt;
c. funding for the principal purpose of
				  refinancing existing debt in excess of 10 percent of the total requested loan
				  amount.
3. The
				  corporation shall not knowingly approve any loan guaranty/participation if the
				  applicant has presently pending, or outstanding, any claim or liability
				  relating to failure or inability to pay promissory notes or other evidence of
				  indebtedness including state or federal taxes, or bankruptcy proceeding; nor
				  shall the corporation approve any loan guarantee/participation if the applicant
				  has presently pending, at the federal, state, or local level, any proceeding
				  concerning denial or revocation of a necessary license or permit.
4. The terms or conditions imposed and made
				  part of any loan guaranty/participation authorized by vote of the corporation
				  board shall not be amended or altered by any member of the board or employee of
				  the Department of Economic Development except by subsequent vote of approval by
				  the board at the next meeting of the board in open session with full
				  explanation for such action.
5. The
				  corporation shall not subordinate its position.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6111 - General Agreement Provisions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Participation Agreement
1. The lending institution is responsible for
				  administration and monitoring of the loan.
2. The lead lender may not sell any
				  additional participations in the loan.
3. Should liquidation through foreclosure
				  occur, the bank will sell the collateral and handle the legal
				  proceedings.
4. The bank interest
				  rate may not exceed 4 percentage points above New York prime, as published in
				  the
Wall Street Journal
, at either a fixed or variable
				  rate.
5. Delinquency will be
				  defined according to the bank's normal lending policy and all remedies will be
				  outlined. Notification of delinquency will be made to the corporation in
				  writing and verbally in a time satisfactory to the bank and the
				  corporation.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6113 - Confidentiality

Current through Register Vol. 50, No. 6, June 20, 2024
A. Confidential
				  information in the files of the corporation and its accounts, acquired in the
				  course of duty, is to be used solely for the corporation. The corporation is
				  not obliged to give credit rating or confidential information regarding
				  applicant. Also see Attorney General Opinion Number 82-860.
AUTHORITY NOTE:
					 Promulgated in accordance with R.S.
					 51:2341-2347.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6115 - Conflict of Interest

Current through Register Vol. 50, No. 6, June 20, 2024
A. No
				  member of the corporation, employee thereof, employee of the Department of
				  Economic Development, nor members of their immediate families, shall either
				  directly or indirectly be a party to or be in any manner interested in any
				  contract or agreement with the corporation for any matter, cause, or thing
				  whatsoever by reason whereof any liability or indebtedness shall in any way be
				  created against such corporation. If any contract or agreement shall be made in
				  violation of the provisions of this Section, the same shall be null and void,
				  and no action shall be maintained thereon against the corporation.
AUTHORITY NOTE:
					 Promulgated in accordance with R.S.
					 51:2341-2347.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6117 - Attachment A

Current through Register Vol. 50, No. 6, June 20, 2024
A. Attachment A.
				  The application for financial assistance should consist of a completed LEDC
				  application form and a comprehensive business plan/loan proposal which
				  contains, but is not limited to, the following guidelines:
1. a LEDC Contract Loan Application
				  Form;
2. Executive Summary:
a. business description:
i. name;
ii. location and business facility
				  description;
iii. product or
				  service;
iv. market and
				  competition;
v. management
				  expertise;
b. business
				  goals, including number of employee jobs to be saved or created as a result of
				  this loan;
c. uses of loan
				  proceeds;
d. copy of contract:
				  provide name, address, and telephone number of awarding agency;
e. projected financial results demonstrating
				  payback capability;
3.
				  Operations
i. board of directors
				  composition;
ii. officers:
				  organization chart and responsibilities;
iii. list of stockholders with more than 15
				  percent ownership;
iv. resumes of
				  key personnel;
v. staffing
				  plan/number of employees;
vi.
				  facilities plan/planned capital improvements;
vii. operating plan/schedule of upcoming work
				  for next one to two years;
viii.
				  list of work backlog, if any;
4. The originating bank may be asked by LEDC
				  to share additional information on which they based a favorable
				  decision;
5.
a. For sole proprietorships:
i. last three years personal, federal and
				  state income tax returns complete with all schedules (as available based upon
				  age of business);
ii. interim
				  business income statement for the current year;
iii. complete personal financial
				  statement.
b. For
				  partnerships or corporations:
i. last three
				  years' business financial statements including balance sheets and income
				  statements;
ii. interim business
				  financial statements;
iii. last
				  three years' business income tax returns complete with all schedules;
iv. most recent personal income tax returns
				  including all schedules with K1s for each owner, general partner, and/or
				  guarantor.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 71 - BIDCO Investment and Co-Investment Program › Section VII-7101 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
BIDCO
-a business and industrial
					 development corporation licensed by the Louisiana Office of Financial
					 Institutions (OFI) with its business consisting of providing non-traditional
					 capital and/or debt funding for Qualified Louisiana Businesses.
Private Capital
-paid in cash from non-LEDC
					 sources, available for investment in assets of the BIDCO. These non-LEDC
					 sources may include other non-state governmental sources provided the non-state
					 governmental funds do not exceed 50 percent of the private capital, and
					 provided the non-state governmental funds are not directly or indirectly
					 derived from state sources. For purposes of calculating the eligibility of a
					 request for matching equity capital, components other than paid in cash will
					 not be considered.
Qualified Louisiana Business
-any
					 enterprise with its primary operations in Louisiana, or with substantially all
					 of its production in Louisiana, and which has no more than 500 employees and
					 has annual business receipts not in excess of $7,000,000.
Specialty BIDCO
-defined in accordance with
					 the Office of Financial Institution's BIDCO policy.
Seed Investor
-an investor in the start-up
					 stages of the BIDCO, prior to certification by OFI and LEDC.
Definitions of other terms used herein are provided in the
					 legislation which is reflected in Chapter 39-A of Title 51 of the Louisiana
					 Revised Statutes of 1950, comprised of
					 R.S.
					 51:2386 through 2398.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A) (7), (B) (1) and (B)
					 (3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 71 - BIDCO Investment and Co-Investment Program › Section VII-7103 - Eligibility for Submission of an Application

Current through Register Vol. 50, No. 6, June 20, 2024
A. In order to be eligible for consideration
				  to receive a matching or co-investment equity capital investment by LEDC, the
				  applicant must fulfill the following eligibility requirements.
1. It must have obtained a license from
				  OFI.
2. It must be a for profit
				  Louisiana corporation.
3. In order
				  to be eligible to receive an investment from LEDC, as described in §7107, it
				  must have raised a minimum of $1,000,000 of private capital, exclusive of LEDC
				  funds. These private capital funds must be actual cash contributions [pursuant
				  to
				  R.S.
				  51:2392(B)(2)(d)(2)].
4. Its management must be experienced in debt
				  and/or capital financing of the types and volume contemplated by the applicant
				  BIDCO.
5. LEDC may consider
				  applications from BIDCOs which have a businesslike mission but with special
				  circumstances or specialized opportunities (herein "Specialty
				  BIDCOs").
6. Owners and Investors
				  cannot be in conflict with the Code of Governmental Ethics
				  R.S.
				  42:1112. BIDCO's shall not invest in a
				  company in which a principal or officer of the BIDCO also has an interest in
				  the company.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 71 - BIDCO Investment and Co-Investment Program › Section VII-7105 - Application

Current through Register Vol. 50, No. 6, June 20, 2024
A. An application
				  fee of $500 shall be submitted at the time of application.
B. Applications will be processed for a
				  matching equity capital investment or for a co-investment as follows.
1. Applications will be processed in the
				  order in which they are received.
2. LEDC staff will conduct an initial
				  screening of the application for completeness.
3. An incomplete application will be returned
				  to the submitter. A previously incomplete application may be resubmitted, which
				  will establish a new time and date received for that application.
4. An incomplete application not resubmitted
				  within 30 days will forfeit the application fee.
5. LEDC staff will begin the evaluation
				  process within 30 days of receipt.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 71 - BIDCO Investment and Co-Investment Program › Section VII-7107 - Amount of Investment

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  Co-Investment
1. If a non-specialty BIDCO can
				  show cash of at least $1 MM but less than $2,000,000, LEDC may co-invest $1 for
				  each $2 for each LEDC approved project submitted to it by the BIDCO. The LEDC
				  investment will participate pro-rata with the BIDCO share of the investment.
				  The LEDC investment will not exceed 33 percent of any project nor will LEDC
				  funding exceed $1 for each $2 of the BIDCO's total capital. On each project
				  submitted for review, an application fee of $250 is required.
2. If a specialty BIDCO can show cash of at
				  least $500K plus enough operating capital to administer ongoing investments,
				  but less than $1,000,000, LEDC may co-invest $1 for each $1 for each LEDC
				  approved project submitted to it by the BIDCO. The LEDC investment will
				  participate pro-rata with the BIDCO share of the investment. The LEDC
				  investment will not exceed 50 percent of any project nor will LEDC funding
				  exceed $1 for each $1 of other BIDCO capital committed.
3. On each project submitted for reviewed, an
				  application fee of $250 is required.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 71 - BIDCO Investment and Co-Investment Program › Section VII-7109 - Terms of Investment

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  Founders stock and or investment given in exchange for services shall be
				  subordinate to LEDC's investment unless LEDC determines that the pricing of
				  such founders investment and or stock is commensurate with the services
				  performed or risks taken, in comparison with the pricing of LEDC
				  investment.
B. LEDC will have the
				  right to appropriate representation on the board in the BIDCO. This may include
				  but not be limited to board seat/seats; veto authority or supermajority
				  requirements for key management and financial decisions; board visitation
				  rights.
C. LEDC's stock may be
				  repurchased by the BIDCO or, secondarily, by its private-capital stockholders
				  at any time beginning with the end of the third year based on the then-current
				  book value or market value, whichever is higher, subject to LEDC's concurrence
				  on the valuation methodology. However, the BIDCO shall establish a sinking fund
				  beginning in year three so that the LEDC investment is returned by the end of
				  year 10.
D. LEDC may negotiate
				  additional operating requirements with individual applicant BIDCOs on a case by
				  case basis, as needed to safeguard the quality of LEDC's investment or to
				  promote achievement of the objectives of the program or LEDC.
E. All agreements will be executed by duly
				  authorized persons outlining the details of the transaction.
F. The LEDC's funding under its commitment
				  will be made on a quarterly basis subject to verification of non-LEDC funds
				  received by the BIDCO and availability of LEDC funds.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A) (7), (B) (1) and (B)
					 (3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7201 - Purpose

Current through Register Vol. 50, No. 6, June 20, 2024
A. The Capital
				  Access Program is designed to be a flexible and non-bureaucratic program to
				  assist Louisiana financial institutions to make loans that carry a higher risk
				  than conventional loans in a manner consistent with sound banking regulations.
				  The purpose of the Capital Access Program is to increase the loan capital
				  available to small business in Louisiana through a public/private loan
				  portfolio insurance fund.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7205 - Authority to Implement Agreement

Current through Register Vol. 50, No. 6, June 20, 2024
A. The executive director or the president,
				  and the secretary treasurer of the Louisiana Economic Development Corporation
				  are authorized to execute any document reasonably necessary or convenient to
				  implement the agreement.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7207 - Program Registration Procedure

Current through Register Vol. 50, No. 6, June 20, 2024
A. A financial institution wishing to
				  participate in the program will complete a program registration application on
				  a form provided by LEDC. LEDC shall determine the financial institution's
				  eligibility to participate in the program from the information provided, or
				  from such other information as LEDC may deem necessary.
B. A financial institution that is eligible
				  to participate in the program shall enter into an agreement with the LEDC on a
				  form provided by the LEDC.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7209 - Agreement

Current through Register Vol. 50, No. 6, June 20, 2024
A. The agreement
				  entered into by the participating financial institution and the LEDC shall
				  provide for:
1. a loss reserve account by
				  LEDC, owned by LEDC and for the benefit of the participating financial
				  institutions;
2. the creation of a
				  loss reserve account by the participating financial institution with
				  contributions from the participating financial institution and the
				  borrower;
3. the liability of LEDC
				  to the participating financial institution is limited to the balance of the
				  contributed amount in the LEDC loss reserve account attributed to enrolled
				  qualified loans for the participating financial institution;
4. the terms and conditions of qualified
				  loans to be determined solely by agreement of the lender and
				  borrower;
5. the enrollment of
				  qualified loans in the program;
6.
				  the deposit of funds by the borrower and the lender into the loss reserve
				  account when the lender makes a qualified loan to the borrower;
7. the deposit of funds by LEDC into its loss
				  reserve account set up in LEDC for its match;
8. a deposit of $50,000 seed by LEDC into the
				  LEDC loss reserve account for each participating financial institution which
				  will be reimburse as loans are enrolled;
9. a claims process for reimbursement of
				  losses that have been incurred from defaults on qualified loans;
10. payment by the LEDC from its loss reserve
				  account to a lender to reimburse it for any loss;
11. disposition of any recoveries from a
				  borrower made by the lender subsequent to being reimbursed for any loss by
				  LEDC;
12. conditions for
				  subrogation of LEDC, at LEDC's request, to the rights of the lender in
				  collateral, personal guarantees, and all other forms of security for the
				  qualified loan;
13. conditions for
				  decreases by LEDC of excess balances in the LEDC loss reserve
				  account;
14. termination by LEDC of
				  the obligation to enroll qualified loans under the program;
15. conditions for termination of the
				  agreement, and disposition by the lender and LEDC of any remaining balance in
				  the loss reserve accounts;
16.
				  withdrawal by a lender from the program, and disposition by the lender and LEDC
				  of any remaining balance in the loss reserve accounts;
17. periodic reporting to LEDC by the lender
				  as required;
18. inspection by LEDC
				  of the pertinent files of the lender relating to enrolled loans;
19. transmittal to LEDC by the applicable
				  state or federal regulatory body of the lender of any public information
				  directly relating to the lenders participation in program;
20. such other terms and conditions as LEDC
				  may require.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7211 - Establishing a Loss Reserve Account

Current through Register Vol. 50, No. 6, June 20, 2024
A. Upon the execution of the agreement with
				  the participating financial institution, the lender shall establish a loss
				  reserve account to receive all fees from the borrower and the lender. The
				  lender's loss reserve account shall be domiciled with a financial institution
				  in the form of an insured, interest-bearing deposit in accordance with
				  statutory requirements.
B. LEDC's
				  loss reserve account will be established as an account controlled by
				  LEDC.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7213 - Ownership, Control, Investment of Loss Reserve Account

Current through Register Vol. 50, No. 6, June 20, 2024
A. All moneys in a loss reserve account held
				  at and by the bank are to be used exclusively for this program by the bank. The
				  LEDC may withdraw funds from a loss reserve account only as provided for in
				  these rules.
B. Any earnings on the
				  balance in a loss reserve account are deemed to be part of the loss reserve
				  account up to 10 percent above the present maximum portfolio
				  exposure.
C. The LEDC may withdraw
				  at any time and for use as deemed appropriate by the LEDC a maximum of 100
				  percent of all earnings that have been credited to the loss reserve account
				  over the present portfolio exposure, with such withdrawal limited to a maximum
				  of 100 percent of earnings credited to the loss reserve account since the last
				  such withdrawal.
D. Should the bank
				  opt to terminate the program, LEDC will be entitled to and claim ownership of
				  all funds in the loss reserve account held by the bank. however, any enrolled
				  loans which are still outstanding at the time of termination will be covered by
				  the loss reserve account.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7215 - Loan Loss Contributions

Current through Register Vol. 50, No. 6, June 20, 2024
A. When
				  making an enrolled loan, the lender shall charge the borrower no less than 2
				  percent and no more than 3.5 percent of the loan amount for their contribution
				  to the loan loss fund and the lender shall match the contribution with a like
				  percentage. The bank shall deposit the contributions in the loan loss fund at
				  closing. LEDC will contribute the same percentage of the loan amount as the
				  bank at the time it is notified of the enrollment of the loan.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7217 - Procedure for Enrollment of a Qualified Loan

Current through Register Vol. 50, No. 6, June 20, 2024
A. A lender shall enroll a qualified loan
				  under the program:
1. by notifying LEDC in
				  writing, on a form prescribed by LEDC and within 10 days after the qualified
				  loan is made, that it is enrolling a qualified loan. for purposes of this
				  Section, the date on which the lender makes a qualified loan is the earlier of
				  the date on which the lender first disburses proceeds of the qualified loan to
				  the borrower, or the date on which the loan documents have been executed and
				  the lender has obligated itself to disburse proceeds of the loan; and
2. by transmitting to LEDC a deposit receipt
				  of the contributions collected from the lender and the borrower in connection
				  with the qualified loan.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7219 - Procedure for Making Claim for Reimbursement of Loss

Current through Register Vol. 50, No. 6, June 20, 2024
A. At the time a lender charges off all or
				  part of an enrolled loan as a result of a default by the borrower, the lender
				  may make a claim for reimbursement for all or part of the loss incurred by
				  notifying LEDC of the claim in writing on a form provided by LEDC within three
				  calendar months of the date a loss has occurred with respect to the enrolled
				  loan.
B. A lender may make a claim
				  for reimbursement of a loss prior to the liquidation of collateral, or to
				  realization on personal or their financial guarantees or from other sources,
				  subject however to the provision in
				  §7223 on recoveries on loans subsequent
				  to payment of claims.
C. The lender
				  shall retain documentation in its files substantiating all claims.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7221 - Payment of Claims by LEDC

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  LEDC shall pay loss claims as submitted, except LEDC may reject a claim when
				  the representations and warranties provided by the Lender at the time of
				  enrolling the qualified loan were false.
B. Lender shall send evidence that a
				  withdrawal of an amount equal to 66.66 percent of the loan loss has been made
				  from the lenders loss reserve account with the payment request from
				  LEDC.
C. LEDC shall pay loss claims
				  in the order it receives them. If two or more loss claims are filed
				  simultaneously by the lender and there are insufficient funds in the loss
				  reserve account to pay them, the lender may designate the order the loss claims
				  are paid by LEDC.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7223 - Recoveries on Loans Subsequent to Payment of Claim

Current through Register Vol. 50, No. 6, June 20, 2024
A. If subsequent to the payment of a loss
				  claim by LEDC the lender recovers from the borrower, from liquidation of
				  collateral or from any other source, any amount for which lender was reimbursed
				  by LEDC, the lender shall promptly pay to LEDC its 33.33 percent of the amount
				  received that in aggregate exceeds the amount needed to fully cover the
				  lender's loss on the enrolled loan, for deposit in the loss reserve
				  account.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7225 - Available Collateral, Guarantees and Other Security Not Realized

Current through Register Vol. 50, No. 6, June 20, 2024
A. After LEDC has
				  paid a loss claim to the lender from the loss reserve account, and the lender
				  has terminated its lending relationship with the borrower, the lender shall, at
				  LEDC's request, provide LEDC with details and copies of any collateral,
				  guarantee, or other security documents which secured the qualified loan and
				  which remain available.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7227 - Subrogation

Current through Register Vol. 50, No. 6, June 20, 2024
A. At LEDC's
				  request, LEDC will be subrogated to the rights of the lender in collateral,
				  personal guarantees, and all other forms of security for the qualified loan
				  that have not been realized upon by the lender, when the lender's loss has been
				  fully or partially covered by payment of a loss claim, or by a combination of
				  payment of a loss claim and recovery from the borrower, liquidation of
				  collateral, or from other sources, and the lender has stated to LEDC that it
				  will not take action to realize on remaining available sources of collateral or
				  other security for recovery.
B. At
				  the time of subrogating its rights, the lender shall provide LEDC with all
				  original security agreements, any documents evidencing title to real property,
				  certificates of title, guarantees, and any other documents representing
				  security for the qualified loan, duly recorded and perfected, and accompanied
				  by enforceable assignments and conveyances to LEDC.
C. If the lender chooses not to institute
				  proceedings and/or recover from the borrower, through the liquidation of
				  collateral or from any other source and was reimbursed by LEDC, then LEDC will
				  have the authority to do so and retain any and all funds recovered.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7229 - Reporting

Current through Register Vol. 50, No. 6, June 20, 2024
A. The lender shall
				  provide LEDC with a monthly statement providing details of the balance and the
				  payment and receipts activity in the loss reserve account for the prior
				  month.
B. To assist LEDC in
				  determining the progress of the program and in identifying excesses in loss
				  reserve accounts, the lender shall on or before February 15, May 15, August 15,
				  and November 15 of each year file a report with LEDC indication the number and
				  aggregate outstanding balance of all enrolled loans as of the previous December
				  31 in the case of the report due February 15, as of the previous March 31 in
				  the case of the report due May 15, as of the previous June 30 in the case of
				  the report due August 15, and as of the previous September 30 in the case of
				  the report due November 15. In computing the aggregate outstanding balance of
				  all enrolled loans, the balance of any enrolled loan shall in no event be
				  considered to be greater than the covered amount of the enrolled
				  loan.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7231 - Withdrawal of Excess Deposits in Loss Reserve Accounts

Current through Register Vol. 50, No. 6, June 20, 2024
A. LEDC may withdraw any excess deposits in
				  its loss reserve account if the balances in a loss reserve account have
				  exceeded the aggregate outstanding balances of enrolled loans continuously for
				  a period of six calendar months. LEDC may withdraw the excess of the balance of
				  the loss reserve account over the total balance of enrolled loans on the last
				  day of the sixth calendar month of such excesses, and on the last day of each
				  calendar quarter thereafter, so long as an excess continues to exist.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7233 - Termination of and Withdrawal from Program

Current through Register Vol. 50, No. 6, June 20, 2024
A. LEDC may terminate its obligation to
				  enroll qualified loans under the program for a lender on the date specified in
				  LEDC's notice of termination to the lender, or for all participating lenders
				  under the program upon 90 days notice, or such earlier date should the balance
				  in LEDC's available budget reach zero, or should LEDC anticipate that the
				  balance in the available budget will reach zero. Termination shall not apply to
				  any qualified loans made before the date of termination.
B. Should the balance of a lender's loss
				  reserve account be reduced to zero, LEDC may, at its sole discretion, terminate
				  the agreement.
C. A participating
				  financial institution may withdraw from the program after giving written notice
				  to LEDC. After receipt of this notice, LEDC shall, at its sole discretion,
				  determine the disposition of any remaining balance in the loss reserve
				  account.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7235 - Inspection of Files

Current through Register Vol. 50, No. 6, June 20, 2024
A. LEDC may
				  inspect the files of the lender relating to the enrolled loans at any time
				  during normal business hours.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 6 - Louisiana Economic Development Corporation › Chapter 72 - Capital Access Program › Section VII-7237 - Reports of Regulatory Agencies

Current through Register Vol. 50, No. 6, June 20, 2024
A. LEDC may apply to the applicable state or
				  federal regulatory body of the lender for information directly related to the
				  lender's participation in the program. LEDC shall, to the extent permitted by
				  law, hold any information acquired from regulators in confidence.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312 (A)(7), (B)(1) and
					 (B)(3).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 7 - Louisiana Small Business Linked Deposit Loan Program › Chapter 73 - Procedures for Authorization and Administration › Section VII-7301 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
'But For' Statement
- a signed statement
					 from the lending institution that 'but for' the additional cash flow from the
					 linked deposit the lender would not have made this loan.
Certified Disadvantaged Business
- any
					 business which has received certification from the Division of Economically
					 Disadvantage Business Enterprises.
Corporation
- the Louisiana Economic
					 Development Corporation of the Department of Economic Development.
Eligible Lending Institution
- any bank
					 located in this state and organized under the laws of this state and any
					 national bank which is authorized to make commercial loans and which agrees to
					 participate in the linked deposit program as defined herein.
Eligible Small Business
- any business,
					 that has all the following characteristics:
1. is headquartered in this state;
2. maintains offices and operating facilities in this state
					 and transacts business in this state;
3. employs fewer than 150 employees, the majority of whom
					 are residents of this state;
4. is organized for profit;
5. is not a federally chartered or state chartered bank or
					 savings and loan institution;
6. is not engaged in real estate purchasing, holding,
					 renting, or leasing;
7. is not a professional business of doctors, dentists,
					 chiropractors, certified public accountants, or attorneys.
High Unemployment Area
- as defined by the
					 third quartile of unemployment in the state by the latest semi-annual
					 statistics from the Louisiana Department of Labor.
Linked Deposit
- a certificate of deposit
					 placed by the treasurer (as defined herein) with an eligible lending
					 institution at a percentage below existing investment rates, as determined and
					 calculated by the treasurer, provided the institution agrees to provide a loan
					 to an eligible small business at an equal percentage below the existing
					 borrowing rate applicable to each specific business at the time of the deposit
					 of state funds in the lending institution.
Low Employment Area
- as defined to be in
					 the lower two quartiles of the state by the latest semi-annual statistics from
					 the Louisiana Department of Labor.
Substantial Stockholders
- any person who
					 owns more than 20 percent of a business applying for or currently participating
					 in the Linked Deposit Loan Program as outlined in LAC 19.VII.Subpart 7.Chapter
					 73.
Treasurer
- the treasurer of the state of
					 Louisiana.
Very High Unemployment Area
- as defined to
					 be in the upper quartile of unemployment in the state by the latest semi-annual
					 statistics from the Louisiana Department of Labor.
AUTHORITY NOTE:
					 Promulgated in accordance with LA
					 R.S.
					 51:2312.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 7 - Louisiana Small Business Linked Deposit Loan Program › Chapter 73 - Procedures for Authorization and Administration › Section VII-7303 - General Provisions

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				  Linked Deposit Program is funded to meet all current and anticipated
				  application needs. The extreme changes in the interest rate environment in
				  recent years have, on occasion, presented the treasury with a dilemma. Interest
				  earnings on treasury deposits supporting the Linked Deposit Program have been
				  so low that the rate buy down prescribed below would force the treasury to
				  accept zero or negative earnings on its money. To preclude such events, a floor
				  of 0.5 percent (0.005) is set as the lowest interest earnings accepted for
				  treasury funds on deposit under the Linked Deposit Program, as determined by
				  the state treasury. The buy down described, to the extent that it does not
				  violate this floor, will be awarded on approval of an application.
B. Priority for application approval and
				  funding shall be given as follows.
1. A
				  eligible Louisiana business located in a very high unemployment area which
				  creates one or more jobs shall receive a maximum of a 4 percent interest rate
				  buy down.
2. A eligible Louisiana
				  business located in a high employment area which creates three or more jobs
				  shall receive a 3 percent interest rate buy down (less than three jobs shall
				  receive 2 percent).
3. An eligible
				  Louisiana certified disadvantaged business, disabled owned business, or
				  research recipient of a Small Business Innovative Research Grant, which creates
				  one or more jobs shall receive a maximum of a 3 percent interest rate buy
				  down.
4. An eligible Louisiana
				  business, in a low unemployment area that creates four or more jobs shall
				  receive a maximum of a 2 percent interest rate buy down.
5. An eligible Louisiana business in a low
				  unemployment area creating one to four jobs shall receive a maximum of a 1
				  percent interest rate buy down.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 7 - Louisiana Small Business Linked Deposit Loan Program › Chapter 73 - Procedures for Authorization and Administration › Section VII-7305 - Linked Deposit Loan Program Authorization Lending Institution Requirements; Applicants Requirements and Conditions for Approval

Current through Register Vol. 50, No. 6, June 20, 2024
A. The treasurer may invest in linked
				  deposits, as provided and defined by
				  R.S.
				  51:2312 and also defined herein, provided
				  that at the time of placement of any linked deposit, the total amount of such
				  investments at any one time shall not exceed, in the aggregate, $30,000,000.
				  When deciding whether to invest in linked deposits, the treasurer shall give
				  priority to the investment, liquidity, and cash flow needs of the state and a
				  determination of the financial soundness of the eligible lending
				  institution.
B. An eligible lending
				  institution that desires to receive a linked deposit shall accept and review
				  applications for loans from eligible small business. The eligible lending
				  institution shall apply all usual lending standards to determine the
				  creditworthiness of each eligible small business with the exception of a
				  business the lending institution determines is eligible as a 'but for'
				  application. The eligible lending institution shall not charge, levy or collect
				  any loan application fee, processing fee, or other charges other than its
				  normal loan application fee, processing fee, or other charges when handling a
				  linked deposit application.
C.
1. Only one loan through the linked deposit
				  program shall be made and shall be outstanding at any one time to any eligible
				  small business, owner, or borrower.
2. The maximum amount of a linked deposit
				  which may be made to any eligible small business at any one time shall be
				  $200,000.
3. No loan shall be made
				  to any officer or director of the lending institution making the
				  loan.
4. No loan shall be made for
				  the sole purpose of refinancing previous debt held either by the lending
				  institution or another lending institution. The maximum debt refinance allowed
				  is 25 percent of the total loan amount for any eligible small
				  business.
5. There shall be at
				  least a one year moratorium from the time one linked deposit matures to time of
				  application for any new linked deposit for any eligible small
				  business.
6. The net jobs created
				  by the linked deposit must be maintained by the business for a period of not
				  less than the period of the linked deposit or the treasurer may, in his sole
				  discretion, declare the deposit and interest earned thereon, or any part
				  thereof, to become immediately due and payable, not withstanding any agreement
				  or contract to the contrary.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 7 - Louisiana Small Business Linked Deposit Loan Program › Chapter 73 - Procedures for Authorization and Administration › Section VII-7307 - Liability

Current through Register Vol. 50, No. 6, June 20, 2024
A. Neither the
				  state, the corporation, nor the treasurer shall be liable to any lending
				  institution in any manner for payment of the principal or interest on any loan
				  to an
eligible small business
under §7301 Any delay in
				  payments or default on the part of a small business shall not in any manner
				  affect the deposit agreement between the eligible lending institution and the
				  treasurer.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312.
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 9 - Micro Loan Program › Chapter 75 - Loan Policies › Section VII-7501 - Purpose

Current through Register Vol. 50, No. 6, June 20, 2024
A. The Louisiana
				  Economic Development Corporation (LEDC) wishes to stimulate the flow of private
				  capital, long-term loans, and other financial assistance for the sound
				  financing of the development, expansion, and retention of small business
				  concerns in Louisiana as a means of providing high levels of employment, income
				  growth, and expanded economic opportunities, especially to disadvantaged
				  persons and within distressed and rural areas.
B. The corporation will consider sound loans
				  so long as resources permit. The board of the corporation recognizes that
				  guaranteeing, participating, or lending money carries certain risks and is
				  willing to undertake reasonable exposure.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312(C).
Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 9 - Micro Loan Program › Chapter 75 - Loan Policies › Section VII-7503 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
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.
Economically Disadvantaged Business
- a
					 Louisiana business certified as economically disadvantaged by the Department of
					 Economic Development's Division of Economically Disadvantaged Business
					 Development.
Micro Loans
- those loans ranging in size
					 from $5,000 to $50,000.
Small Business Concerns
- as defined by SBA
					 for purposes of size eligibility as set forth by  13 CFR 121.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 51:2312(C).