The following words and terms, when used in this Subchapter,
shall have the following meanings, unless the context clearly indicates
otherwise:
(1) Agreement--A contract between a Financial Institution
and the Office that authorizes the Financial Institution to participate
in the Program and establishes, in accordance with §200.4 of
this chapter (relating to Agreement), the terms required for the Financial
Institution's participation.
(2) Borrower--A Qualified Business that has received
a Qualified Loan from a Participating Financial Institution.
(3) Enrolled Loan--A Qualified Loan enrolled in the
Program as described in §200.10 of this chapter (relating to
Procedure for Enrollment of a Qualified Loan).
(4) Financial Institution--An insured depository institution,
insured credit union, or Community Development Financial Institution,
as each of those terms is defined in 12 U.S.C. § 4702.
(5) Fund--The Texas Small Business Credit Initiative
Capital Access Fund.
(6) Loan Loss Reserve Account--An account established
at a financial institution in which premiums are deposited to serve
as insurance to reimburse a Participating Financial Institution for
Losses on Enrolled Loans.
(7) Loss--Any original principal amount due and not
paid and not more than the enrolled amount of the Qualified Loan plus
reasonable out-of-pocket expenses. In the event only a portion of
a Qualified Loan was enrolled, the Office limits reimbursement of
out-of-pocket expenses to the ratio of the enrolled portion to the
total loan amount.
(8) Office--The Economic Development and Tourism Office
in the Office of the Governor.
(9) Participating Financial Institution or PFI--A Financial
Institution authorized to conduct business in the State of Texas that
has adequate capacity, as determined by the Office in its sole discretion,
to underwrite and monitor loans and has executed an Agreement with
the Office to participate in the Program.
(10) Principal of a Borrower--A person, other than
an insured bank, that directly or indirectly, or acting through or
in concert with one or more persons, owns, controls, or has the power
to vote more than 10 percent of any class of voting securities of
a member bank or company. Shares owned or controlled by a member of
an individual's immediate family are considered to be held by the
individual.
(11) Principal of a Lender--The principal of a lender
is:
(A) If a sole proprietorship, the proprietor;
(B) If a partnership, each partner; and
(C) If a corporation, limited liability company, association
or a development company, each director, each of the five most highly
compensated executives, officers or employees of the entity, and each
direct or indirect holder of twenty percent or more of the ownership
stock or stock equivalent of the entity.
(12) Program--The Texas Small Business Credit Initiative
Capital Access Program.
(13) Program Website--The dynamic web portal developed
by the Office and located at https://tsbci.gov.texas.gov.
(14) Qualified Business--A Small Business authorized
to conduct business in the State of Texas that meets the eligibility
requirements of §200.7 of this chapter (relating Qualified Loan
Eligibility and Approval).
(15) Qualified Loan--A loan or portion of a loan that
is made by a PFI to a Qualified Business for a business purpose consistent
with §200.8 of this chapter (relating to Eligible and Restricted
Uses of Texas Small Business Credit Initiative Capital Access Program
Loan Proceeds), and not contrary to state or federal law or policy.
(16) Small Business--A corporation, partnership, sole
proprietorship, or other legal entity that:
(A) is domiciled in this state or has at least 51 percent
of its employees located in this state;
(B) is formed to make a profit;
(C) is independently owned and operated; and
(D) employs fewer than 500 employees.
(17) Socially and Economically Disadvantaged Individuals
or SEDI--Individuals whose ability to compete in the free enterprise
system has been impaired due to diminished capital and credit opportunities
as compared to others in the same or similar line of business who
are not socially disadvantaged.
(18) Treasury--The United States Department of Treasury.
(19) Very Small Business--A Small Business that employs
fewer than 10 employees.
|