PURPOSE: This rule defines which types of businesses and which business activities are ineligible to receive loans from Missouri financial institutions under the provisions of the Capital Access Program as contained in sections 620.1045 through 620.1066, RSMo.

1. (1) Missouri financial institutions, as defined in section 620.1048, RSMo (1994), which participate in the Missouri Capital Access Program, may not make loans, under the provisions of that program, to retail borrowers or to borrowers engaged in providing professional services. In addition, no participating financial institution may make a capital access loan to any borrower for the purpose of providing passive real estate ownership. The following definitions relate to the Missouri Capital Access Program:

   1. (A) “Passive real estate ownership” means ownership of real estate for the purpose of deriving income from speculation, trade or rental, except that such term shall not include i) 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 ii) ownership of real estate for the purpose of construction or renovation, until the completion of such construction or renovation;
   2. (B) “Professional services” means professional services activities classified as SIC codes 70 through 89;
   3. (C) “Retail” means retail trade activities classified as SIC codes 52 through 59; and
   4. (D) “SIC” means the standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual, or its successor, as prepared by the Executive Office of the President, Office of Management and Budget.

AUTHORITY: section 620.1066, RSMo (Supp. 1995).* Original rule filed Aug. 29, 1996, effective March 30, 1997.

*Original authority 1994, amended 1995.