Section 231.1409 - Development and implementation; criteria for making loan; procedures for applying for loan; approval of applications for loans; rate of interest; deposits of principal and interest payments1. The Office shall develop and carry into effect a program under which a business located in this State that is certified by an agency or entity approved by the Office as a small business enterprise, minority-owned business enterprise, woman-owned business enterprise, LGBTQ-owned business enterprise or disadvantaged business enterprise may obtain a loan of money distributed from the Account to finance the expansion of its business.2. In carrying out the program, the Office may: (a) Enter into an agreement with a person who operates a program in this State to provide loans to small business enterprises, minority-owned business enterprises, women-owned business enterprises, LGBTQ-owned business enterprises and disadvantaged business enterprises.(b) Make grants of money from the Account to that person, which must be used by that person to make loans or participate with private lending institutions in the making of loans to finance the expansion of a business located in this State that is certified by an agency or entity approved by the Office as a small business enterprise, minority-owned business enterprise, woman-owned business enterprise, LGBTQ-owned business enterprise or disadvantaged business enterprise.3. The Office shall establish the criteria which must be used by the program to determine whether to make a loan to a business described in subsection 1 and the criteria which such a business must meet to qualify for a loan under the program. In establishing such criteria, the Office shall consider, without limitation, whether the making of the loan will assist this State to: (a) Diversify and expand the number and types of businesses and industries in this State;(b) Encourage economic growth and maintain a stable economy;(c) Expand employment opportunities or relieve unemployment or underemployment in any segments of the population of this State that traditionally have experienced the highest rates of unemployment and underemployment; and(d) Encourage the formation and expansion of businesses located in this State that are certified by an agency or entity approved by the Office as a small business enterprise, minority-owned business enterprise, woman-owned business enterprise, LGBTQ-owned business enterprise or disadvantaged business enterprise.4. The Office shall establish procedures for applying for a loan from the program. The procedures must require an applicant to submit an application for a loan that includes, without limitation: (a) A statement of the proposed use of the loan;(c) Such other information as the Office deems necessary to determine whether the making of the loan to the applicant satisfies the criteria established by the Office pursuant to subsection 3 and whether the applicant is qualified for the loan.5. A business located in this State that is certified by an agency or entity approved by the Office as a small business enterprise, minority-owned business enterprise, woman-owned business enterprise, LGBTQ-owned business enterprise or disadvantaged business enterprise may submit an application for a loan to the Office or the person with whom the Office has entered into an agreement to carry out the program.6. The Office, or the person with whom the Office has entered into an agreement to carry out the program, may approve an application for a loan submitted pursuant to subsection 5 if the Office, or the person carrying out the program, finds that: (a) The applicant operates a for-profit business in this State and has the capability to continue in operation in this State for a period prescribed by the Office;(b) The applicant maintains its principal place of business in this State;(c) The applicant is certified by an agency or entity approved by the Office as a small business enterprise, minority-owned business enterprise, woman-owned business enterprise, LGBTQ-owned business enterprise or disadvantaged business enterprise and is in compliance with all applicable licensing and registration requirements in this State;(d) The loan will enable the business to acquire the capital equipment necessary to expand in this State and hire additional employees in this State;(e) There is adequate assurance that the loan will be repaid; and(f) The making of the loan satisfies the criteria established by the Office pursuant to subsection 3.7. If the Office, or a person with whom the Office has entered into an agreement to carry out the program, approves an application for a loan pursuant to this section: (a) The Office, or the person carrying out the program, and the applicant must execute a loan agreement that contains such terms as the Office or person deems necessary; and(b) The Office, or the person carrying out the program, must fund the loan from the money in the Account.8. The rate of interest on loans made pursuant to the program must be as low as practicable, but sufficient to pay the cost of the program.9. After deducting the costs directly related to administering the program, payments of principal and interest on loans made to a small business enterprise, minority-owned business enterprise, woman-owned business enterprise, LGBTQ-owned business enterprise or disadvantaged business enterprise from money distributed from the Account must be deposited in the State General Fund for credit to the Account.10. As used in this section: (a) "Account" means the Small Business Enterprise Loan Account created by NRS 231.14095.(b) "LGBTQ" means lesbian, gay, bisexual, transgender, queer or intersex or of any other nonheterosexual or noncisgender orientation or gender identity or expression.(c) "LGBTQ-owned business enterprise" means a business that:(1) Is owned by a natural person who identifies as LGBTQ; or(2) Has at least 51 percent of its ownership interest held by one or more natural persons who identify as LGBTQ.Added to NRS by 2017, 2911; A 2021, 3172Amended by 2021, Ch. 490,§2, eff. 1/1/2022.Added by 2017, Ch. 450,§3, eff. 7/1/2017.