Deposits made by the department into a reserve account to be placed at a participating financial institution shall be limited by the following:

1. (1) The maximum amount the department may deposit into a reserve account for each capital access loan made under the program is the lesser of $35,000 or an amount equal to:

   1. (A) 8.0% of the loan amount if:

      1. (i) the eligible applicant is located or financing a project, activity, or enterprise in an area designated as an enterprise zone; or
      2. (ii) the eligible applicant is a small or medium size business or a non-profit organization that operates or proposes to operate a day-care center or group day-care home, as those terms are defined by Human Resources Code, §42.002.
   2. (B) 6.0% of the loan for any other eligible applicant.
2. (2) The amount deposited by the department into a participating financial institution's reserve account for any single loan recipient may not exceed $150,000 during a three-year period.

Source Note:The provisions of this §187.12 adopted to be effective September 15, 1997, 22 TexReg 8967.