La. Admin. Code tit. 19 § VII-503

Current through Register Vol. 50, No. 8, August 20, 2024

Section VII-503 - Definitions

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-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.

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;

b. business enterprises that certify that they are owned and controlled by individuals whose residences are in CDFI investment areas, as defined in prevailing federal guidelines issued by the U.S. Treasury;

c. business enterprises that certify that they will operate a location in a CDFI investment area, as defined in prevailing federal guidelines issued by the U.S. Treasury; or

d. business enterprises that are located in CDFI Investment Areas, as defined in prevailing federal guidelines issued by the U.S. Treasury.

Very Small Business-a business with fewer than 10 employees; may include independent contractors and sole proprietors

La. Admin. Code tit. 19, § VII-503

Promulgated by the Department of Economic Development, Office of Business Development and the Louisiana Economic Development Corporation, LR 481473 (6/1/2022), Amended LR 481927 (7/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104, 36:108 and 51:2312