La. Admin. Code tit. 19, § VII-309 - General Loan, Credit, Guaranty and Participation Provisions
A. Except as may be hereinafter provided, all
of the provisions contained in
§109 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).
B. Interest Rates
1. On all loan or line of credit guarantees,
the interest rate is to be negotiated between the borrower and the lender, but
shall not exceed 5 percent per annum above New York prime as published in the
Wall Street Journal at either a fixed or variable
rate.
C. Equity
Requirements
1. To qualify for this Chapter 3
program, the borrower must infuse not less than 15 percent into the equity in
an existing or expanding business, or not less than 20 percent into the equity
of a start-up operation or an acquisition.
D. Limit on the Amount of LEDC's Guarantee
1. In connection with loans included in this
Chapter 3 program, for certified small and emerging business loans, or disabled
person's business enterprise loans, the corporation's loan guarantee shall be:
a. no greater than 75 percent of a loan of up
to $2,000,000; or
b. if the loan
request exceeds $2,000,000, the guaranty shall not exceed $1,500,000.
E. Terms
1. For loan guaranties included in this
Chapter 3 program, all of the provisions contained in §109. F.1 a, b and c of
Chapter 1 of the Small Business Loan and Guaranty Program, with regard to term
periods of various types of loan guaranties, shall also apply to this Chapter 3
program.
F. LEDC Fees
1. In connection with loans and guaranties
included in this Chapter 3 program, LEDC will charge a guaranty fee not to
exceed a maximum amount of 2 percent of the guaranteed loan amount, unless the
board, the board screening committee or other designated committee waives the
guaranty fee.
2. In connection with
loans and guaranties included in this Chapter 3 program, LEDC will charge no
application fee.
Notes
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