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. Board—Board of Directors of Louisiana Economic Development Corporation.
   2. 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.
   3. Confessions of Judgment—a clause with a contract between a lender and borrow, permitting a lender to enforce a debt and obtain a court judgment without a trial.
   4. 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.
   5. Eligible Loan—a loan or line of credit commitment made by the lender to the borrower which meets the established SSBCI criteria and complies with the Micro Lending Program requirements and U.S. Treasury requirements.
   6. Enrolled Loan—a loan enrolled by the Lender to a Borrower pursuant to the terms of the Lender Participation Agreement whereby the eligible loan has been accepted in writing by LEDC.
   7. LED—Louisiana Economic Development, formerly Department of Economic Development.
   8. LEDC—Louisiana Economic Development Corporation.
   9. Lender—for purposes of this Program Chapter, also referred to herein as the lender; the Community Development Financial Institution or other qualifying lender sharing a similar mission driven focus as this program and who has been approved by LED as a participating MLP lender to originate the loan and provide the loan funds to the Borrower.
   10. Lender Insider—means 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.
   11. 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 or term loan originated by a participating CDFI, or other participating lender, of this chapter.
   12. Lender Loan Documents—written documentation evidencing an Enrolled Loan from the Lender to the Borrower pursuant to the Micro Loan Program describe herein and includes, but is not limited to, a loan agreement, note, mortgage, security agreement and guaranty agreement.
   13. Maximum Enrolled Loan Amount—the aggregate outstanding amount of $500,000 for any enrolled loans or loans of a borrower or any common enterprise in which the borrower has an ownership interest.
   14. Micro Loans―those loans ranging in size from $1,000 to $100,000.
   15. Micro Lending Participation Agreement—also referred to herein as the Program Participation Agreement; the executed agreement between LEDC and a participating Lender specifying participation terms, loan parameters and other conditions for program compliance.
   16. Micro Lending Program (MLP)—an Other Credit Support OSCP Program (OCSP) approved by U.S. Treasury which is the subject of this Chapter.
   17. Micro Loans―short-term, low-interest rate loans originated under the Micro Lending Program. Loan limits are determined by LEDC and stated in the program participation agreement.

   18. Passive Real Estate Ownership—ownership of real estate for the purpose of deriving income from speculation, trade or rental, except that such term shall not include:

       1. a. the ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate; or
       2. b. ownership of real estate for the purpose of construction or renovation, until the completion of the construction or renovation phase.
       3. 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.
   19. Small Business Concerns—for purposes of size; eligibility for this program will be limited to businesses with 100 employees or less.

   20. 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 in 12 C.F.R. §1805.201(b)(3)(ii);
       3. c. business enterprises that certify that they will operate a location in a CDFI Investment Area, as defined in 12 C.F.R. §1805.201(b)(3)(ii); or
       4. d. business enterprises that are located in CDFI Investment Areas, as defined in 12 C.F.R. § 1805.201(b)(3)(ii).
   21. 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 48:1480 (June 2022), LR 48:1921 (July 2022), amended by Louisiana Economic Development, Office of Economic Development and the Louisiana Economic Development Corporation, LR 52:735 (May 2026).