| (a) The Office may provide the following Guaranteed
Amounts:
(1) for SEDI-owned businesses and Very Small Businesses,
up to 80 percent of Losses on an Enrolled Loan; or
(2) for all other Borrowers, up to 50 percent of Losses
on an Enrolled Loan.
(b) A PFI may seek to enroll a Qualified Loan by:
(1) submitting a Qualified Loan enrollment application
through the Program Website on or before the fifteenth business day
after the date loan documents were executed;
(2) making required certifications; and
(3) specifying the Guaranteed Amount of coverage it
seeks for the loan based upon the loan agreement with the Borrower.
Subject to subsection (g) of this section, the Guaranteed Amount shall
not exceed the amounts specified in subsection (a) of this section.
(c) The Office shall notify a PFI of any deficiencies
in the enrollment application submitted under subsection (b)(1) of
this section. The PFI may amend the form to resolve any deficiencies
or withdraw the loan from consideration under the Program. If the
PFI fails to cure the deficiencies in the enrollment form, the Office
may reject the enrollment of the loan. The Office has sole discretion
in determining whether a PFI has failed to cure deficiencies.
(d) Upon receipt of documentation satisfying the requirements
in subsection (b) of this section and the resolution of any deficiencies
noted under subsection (c) of this section, the Office may enroll
the Qualified Loan if:
(1) the Office is satisfied the Qualified Loan is eligible
to be enrolled under this chapter, including under §200.105 of
this chapter (relating to Qualified Loan Eligibility and Approval)
and §200.106 of this chapter (relating to Eligible and Restricted
Uses of Texas Small Business Credit Loan Guarantee Program Loan Proceeds);
(2) with the information provided at the time the PFI
requests a loan's enrollment, the Office is satisfied the Qualified
Loan does not violate predatory lending laws or other state or federal
laws, policies, regulations, or guidance;
(3) sufficient funds are available in the Fund to meet
the Office's encumbrance obligations under §200.108 of this chapter
(relating to Encumbrance of Funds);
(4) enrollment would not result in the Qualified Business
having two or more active Enrolled Loans in the Program for the same
purpose at the same time, as determined by the Office in its sole
discretion;
(5) enrollment would not result in a single loan being
enrolled in more than one approved program associated with the Texas
Small Business Credit initiative at the same time; and
(6) the Office, in its sole discretion, has not otherwise
determined the loan may not be enrolled.
(e) The Office shall, within a reasonable time after
receipt of the information required by this section, notify the PFI
whether a loan is enrolled.
(f) After notifying the PFI that the Qualified Loan
has been approved for enrollment, the Office shall encumber an amount
in the Fund in accordance with §200.108 of this chapter.
(g) Notwithstanding subsection (a) of this section,
upon request from a PFI, the Office, in its sole discretion, may authorize
the PFI to obtain a maximum Guaranteed Amount specified in subsection
(a)(1) of this section for all Borrowers, regardless of whether the
Borrower is a SEDI owned business or a Very Small Business.
(h) Notwithstanding any provision to the contrary,
the Office shall unenroll loans it determines, in its sole discretion,
were enrolled in error because the loan did not meet the requirements
of this chapter, the PFI failed to disclose a material fact or factor
about the nature or purpose of the loan in its request to enroll the
loan, if the nature or use of the loan changed after enrollment, or
other good cause.
(i) Without regard to the terms of the Qualified Loan,
the term of enrollment in the Program shall not exceed one hundred
eight months from the date of first disbursement of the Qualified
Loan.
|
