As used in this part:

1. (1) "Applicant" means a financial institution;
2. (2) "Application" means a request for a loan or other credit guarantee submitted to the Arkansas Development Finance Authority by a financial institution;
3. (3) "Authority" means the Arkansas Development Finance Authority established by Acts 1985, No. 1062;
4. (4) "Board" means the Board of Directors of the Arkansas Development Finance Authority;

5. (5) "Borrower" means an:

   1. (A) Eligible disadvantaged business enterprise that is seeking the loan for its own purpose in fulfilling a contract; or
   2. (B) Individual or individuals who are building a single-family residence for their own habitation who in turn are obtaining the services of an eligible disadvantaged business enterprise entity to build their single-family residence;
6. (6) “Committee" means the Small Business Loan Committee of the Board of Directors of the Arkansas Development Finance Authority appointed by the board to approve guarantees under this program with requirement that all such actions taken by the committee shall be reported at the next meeting of the board;
7. (7) "Eligible disadvantaged business enterprise" means businesses qualified either by the Arkansas Department of Transportation as a disadvantaged business enterprise and/or by the United States Small Business Administration as an 8(a) contractor, or such other categories as the Board of Directors of the Arkansas Development Finance Authority may designate;

8. (8)

   1. (A)

      1. (i) "Eligible purposes" means working capital necessary to secure a performance bond from a surety to complete contract work.
      2. (ii) Performance bonds shall be specific to particular contracts.
   2. (B) In the case of homebuilders, “eligible purpose” means construction of a low-to-moderate-income, single-family, owner-occupied home.

   3. (C) “Eligible purposes” does not include an insured loan made primarily to pay off or refinance an existing debt to a creditor:

      1. (i) Whose loan is inadequately secured; or
      2. (ii) Who is in danger of sustaining a loss;

9. (9) "Escrow agent" means a company:

   1. (A) Qualified as a funds management service; and
   2. (B) Approved by surety companies to administer payments on a contract in a manner to ensure cost accountability;
10. (10) "Financial institution" means a financial institution defined in Arkansas Code § 23-30-101 et seq. [repealed], or institutions created under Acts 1957, No. 567, of the General Assembly, which provided for development finance corporations, and all subsequent amendments;
11. (11) “Fund” means five hundred thousand dollars ($500,000) of unrestricted reserves of the Arkansas Development Finance Authority that was allocated by the Board of Directors of the Arkansas Development Finance Authority to establish a fund to provide guarantees for loans made to disadvantaged business enterprises by resolution adopted January 20, 1994, or such other funds as may be made available for the purposes of the program;
12. (12) "Loan authorization" means a letter from the President of the Arkansas Development Finance Authority or Vice President of Development Finance or their designees to a financial institution agreeing to insure a loan to a borrower on the terms and conditions and subject to the requirements stated therein;
13. (13) "Loan insurance agreement" means the agreement between the financial institution and the Arkansas Development Finance Authority required by 15 CAR § 71-111;
14. (14) “Low-to-moderate income” means eighty percent (80%) to one hundred forty percent (140%) of the adjusted median household income as determined by the United States Department of Housing and Urban Development;
15. (15) “Preapproved borrower” means a borrower with a firm take-out commitment for a specific amount and specific term issued by a bona fide financial institution;
16. (16) “State” means the State of Arkansas;
17. (17) "Surety" means a surety agent of a licensed surety company listed by the United States Small Business Administration as qualified to participate in the United States Small Business Administration Surety Bond Guarantee Program, other sureties, and/or insurance agencies as may be approved by the Arkansas Development Finance Authority; and
18. (18) "Working capital loan" means any loan the proceeds of which are to be used for operating, maintenance, and other costs and expenses.