1. A. Except as may be hereinafter provided, all of the provisions contained in §107 of Chapter 1 of the Small Business Loan and Guaranty Program shall also apply to this Chapter 3 program (except that loan participations will not be utilized in this Chapter 3 program).

2. B. In addition to the eligibility and ineligibility provisions provided in the Section mentioned in the above Subsection A, applicant/borrowers and loans, lines of credit and loan guarantees in connection with this Chapter 3 program shall meet the following criteria:

   1. 1. the applicant/borrower(s) shall employ 500 employees or less at the time the loan is enrolled in this program;
   2. 2. this credit support shall not be extended to applicant/borrower(s) that have more than 750 employees;
   3. 3. any loan supported in this program shall not exceed a principal amount of $5,000,000;
   4. 4. any credit extended through this program shall not exceed a principal amount of $20,000,000;
   5. 5. SSBCI funds utilized in this Chapter 3 program will be permitted only for new extensions of credit; that is, funds of the SSBCI Program shall not be used to support existing extensions of credit, including but not limited to prior loans, lines of credit or other borrowing, that were previously made available as part of a state small business credit enhancement program; and
   6. 6. Small Business Administration (SBA) guaranteed loans shall not be purchased in loan participations through this program.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with LA. R.S. 51:2312.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of the Secretary, Office of Business Development and Louisiana Economic Development Corporation, LR 38:999 (April 2012).