1. 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.

2. B. In this Chapter, the following terms shall have the meanings provided herein, unless the context clearly indicates otherwise.

   1. Accepted Loan—a loan accepted by LEDC as eligible under the collateral support program (CSP).

   2. Affiliate of the Borrower—any person or entity directly or indirectly controlled by the borrower or directly or indirectly controlling the borrower or under common control with the borrower. For purposes of this definition, a person controls another person if such person directly or indirectly, or acting through or in concert with one or more persons:

      1. a. owns, controls, or has the power to vote twenty percent (20 percent) or more of any class of voting securities or interests of the other person;
      2. b. controls in any manner the election or appointment of a majority of the directors or management of the other person; or
      3. c. has the power to exercise a controlling influence over the management or policies of the other person.

   3. Affiliate of the Lender—any person or entity directly or indirectly controlled by the lender or directly or indirectly controlling the lender or under common control with the lender. For purposes of this definition, a person controls another person if such person directly or indirectly, or acting through or in concert with one or more persons:

      1. a. owns, controls, or has the power to vote 20 percent or more of any class of voting securities or interests of the other person;
      2. b. controls in any manner the election or appointment of a majority of the directors or management of the person; or
      3. c. has the power to exercise a controlling influence over the management or policies of the other person.
   4. Board—the Board of Directors of Louisiana Economic Development Corporation (LEDC).
   5. Borrower—an eligible borrower which is the recipient of a loan which is, has been, or will be registered by the lender under the CSP for collateral support through a collateral deposit account.
   6. Business Day—any day other than a Saturday, Sunday, or any other day on which commercial banks in Louisiana are required or authorized to be closed.
   7. CDFI-Community Development Financial Institution—has the meaning given that term under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994.
   8. CDFI Investment Area—as defined by Treasury for the SSBCI Program, 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.
   9. Collateral Deposit Account—the interest bearing account or certificate of deposit opened with lender in the name of LEDC pledged as collateral for an accepted eligible loan.
   10. Collateral Deposit Agreement—the loan and deposit agreement (“deposit agreement”), to be executed by LEDC and the lender, for the deposit of cash collateral by LEDC with the lender, as security for a portion of the loan accepted under this program.
   11. Corporation—the Louisiana Economic Development Corporation (LEDC).
   12. CSP—the Collateral Support Program.
   13. CSP Application— program application for the collateral support request where the lender and borrower each sign and agree to abide by the assurances and certifications as required by the U.S. Treasury.
   14. CSP Collateral Analysis Form—form completed by the lender evaluating the borrower’s collateral value position.
   15. CSP Claim Form—form completed by the lender to LEDC in the event of a default and subsequent loan loss.
   16. Default—delinquent in making payment, when due, of any installment of principal or interest on any note, for a period of more than 90 days.
   17. Double-Dipping Fees—occurs when a lender issues new credit to refinance prior credit without forgiving a portion of the fee already paid resulting in the borrower paying a fee on top of a fee.
   18. Eligible Borrower—a Louisiana business enterprise which meets all requirements of federal law and the CSP.
   19. Eligible Loan—a loan (or a line of credit) that meets the criteria for an eligible loan under the CSP in effect at the time the loan is registered and for which each of the assurances, representations and warranties set forth in the CSP is true and correct.
   20. Enrolled Loan—a loan (or a line of credit loan) which has been approved for acceptance in the CSP and in which the loan instruments have been fully executed.
   21. 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 depository credit union, or depository 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).
   22. LED―Louisiana Economic Development, formerly Louisiana Department of Economic Development).
   23. LEDC—the Louisiana Economic Development Corporation (LEDC).
   24. Lender—an insured depository institution, insured depository credit union, or depository community development financial institution, as those terms are each defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702) which is experienced in the making of loans to businesses of the type provided for under the CSP, has an office and business operations in the State of Louisiana, and is regulated by the Office of the Comptroller of the Currency (including by merger, the Office of Thrift Supervision), the Federal Reserve Board, the Louisiana Department of Finance or similar regulatory agency. All lenders must execute a lender collateral deposit agreement with LEDC; and is the entity that will make or originate the accepted eligible loan with the eligible borrower under this program.
   25. 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.
   26. Loan—any temporary advance or provision of money to an eligible borrower by the lender for a business purpose, usually for a limited term and requiring the payment of interest along with the repayment of the loaned funds under the CSP, that is evidenced by a promissory note that obligates the borrower to repay the advance. When used herein, the word loan includes a line of credit loan.
   27. Loss—any principal amount due and not paid at a time the lender determines in a manner consistent with its normal method and timetable for making such determinations that a qualified loan is uncollectible and is to be charged off as a loss. The amount included in the loss shall not exceed the unpaid principal balance of the enrolled loan.
   28. Net Proceeds of the Loan—the gross loan amount less costs incurred in issuing the loan which are paid by the borrower out of the gross loan amount.
   29. Prepayment Fees—also referred to as Prepayment penalty, fee imposed upon the borrower when all or part of a loan is paid before the scheduled loan term ends.
   30. Program—the collateral support program.
   31. Small Business Concern—for purposes of size eligibility for this program will be limited to businesses with 100 employees or less.

   32. Socially and Economically Disadvantaged Individual (SEDI) Owned Business—

       1. 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:

          1. i. membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society;
          2. ii. gender;
          3. iii. veteran status;
          4. iv. limited English proficiency;
          5. v. physical handicap;
          6. vi. long-term residence in an environment isolated from the mainstream of American society;
          7. vii. membership of a federally or state-recognized Indian tribe;
          8. viii. long-term residence in a rural community;
          9. ix. residence in a U.S. Territory;
          10. x. residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization); or
          11. xi. membership of another underserved community as defined in Executive Order 13985;
       2. b. business enterprises that certify that they are owned and controlled by individuals where residences are in CDFI investment Areas, as defined by Treasury for the SSBCI Program;
       3. c. business enterprises that certify that they will operate a location in a CDFI Investment Area, as defined by treasury for the SSBCI Program; or
       4. d. business enterprises that are located in CDFI investment areas, as defined by the U.S. Treasury for the SSBCI Program.
   33. Very Small Business—a business with fewer than 10 employees; may include independent contractors and sole proprietors.

Authority Note

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

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of Business Development and the Louisiana Economic Development Corporation, LR 48:1461 (June 2022), LR 48:1906 (July 2022), amended by Louisiana Economic Development, Office of Economic Development and the Louisiana Economic Development Corporation, LR 52:730 (May 2026).