Home Table of Contents

§ 8078.29. Definitions.

4 CA ADC § 8078.29Barclays Official California Code of RegulationsEffective: March 25, 2024

Barclays California Code of Regulations
Title 4. Business Regulations
Division 11. California Pollution Control Financing Authority (Refs & Annos)
Article 7. Capital Access Program for Small Businesses
Effective: March 25, 2024
4 CCR § 8078.29
§ 8078.29. Definitions.
In addition to the definitions in Section 8070, the following definitions shall apply only to the Collateral Support Program, Sections 8078.29 to 8078.35 inclusive. To the extent the definitions contained herein conflict with definitions contained in Section 8070, the definitions in this section shall control for purposes of the Collateral Support Program.
(a) “Annual Fee” means the fee charged by the Authority for annual renewals of Collateral Support for lines of credit up to a total of 60 months.
(b) “Bridge Loan” means a loan needed prior to obtaining permanent financing or support, including Small Business Administration, 504 bridge loans, where the Participating Financial Institution is at increased risk pending future take-out financing or guarantee.
(c) “Collateral Support” or “Collateral Support Contribution” means an amount of cash deposit offered and underwritten by the Authority covering a collateral shortfall of a Qualifying Loan of an otherwise credit-worthy Borrower.
(d) “Collateral Support Program Approval” means the Authority's approval of Collateral Support for a Qualified Loan.
(e) “Collateral Support Program Request” means the request that a Participating Financial Institution must submit to the Authority to apply for Collateral Support.
(f) “Closing Fee” means the fee charged to the Borrower to participate in the Collateral Support Program when the Qualified Loan closes, based on the original amount and term of support, and type of Qualified Loan.
(g) “Default Notification” means the written notice that a Participating Financial Institution must submit to the Authority upon the default of an enrolled loan.
(h) “Final Approval” means the discretionary approval of the Collateral Support offered and underwritten by the Authority after the submission of final loan documents and payment of the Closing Fee by the Participating Financial Institution.
(i) “Final Enrollment” means loan enrollment in the Program after the submission of final loan documents and payment of the Closing Fee by the Participating Financial Institution after receiving the Initial Approval.
(j) “Initial Approval” means the discretionary, preliminary approval by the Authority of a Collateral Support Program Request submitted to the Authority, including any conditions, contingencies or additional parameters specified by the Authority necessary for Final Approval of the Collateral Support offered and underwritten by the Authority.
(k) “Program” means the Collateral Support Program.
(l) “Qualified Business” means the same as specified in Section 8070, except that, together with affiliates, the Qualified Business may have 750 or fewer employees.
(m) “Qualified Loan” means the same as specified in Section 8070, and any Small Business Loan, except that:
i. It may not be any loan that exceeds $20,000,000;
ii. The proceeds of the loan may not be disbursed to the Borrower prior to the Authority's Initial Approval; and
iii. The Participating Financial Institution must certify that the loan is being made to an otherwise credit-worthy Borrower with a strong credit profile that meets all the Participating Financial Institution's regular underwriting policy, but for a collateral shortfall.
(n) “Principal Loan Amount” means the Qualified Loan disbursed to an eligible Borrower with a minimum amount of $25,000 and a maximum amount of $20,000,000.
(o) “Risk Assessment” means the valuation made by the Participating Financial Institution consistent with its usual credit policy, which must include: the value of the collateral based on the industry standard of measurement, such as through an appraisal; the Participating Financial institution's valuation of the collateral; the Borrower's risk rating; summary of the relationship and history of the business; the Borrower's cash flow; and financial analysis of the Borrower.
(p) “Small Business Loans” means a Qualified Loan.
(q) “Severely Affected Community (SAC) Contribution” means the additional support for which the Borrower may qualify when the Qualified Business is located in a Severely Affected Community.
(r) “Socially and Economically Disadvantaged Individuals (SEDI) Contribution” means the additional support for which the Borrower may qualify when:
(i) the Qualified Business is owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances or,
(ii) the Qualified Business is owned and controlled by individuals whose residences are in CDFI Investment Areas, as defined in 12 C.F.R. § 1805.201(b)(3)(ii) or,
(iii) the Qualified Business will build, open, or operate a location in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii); or
(iv) the Qualified Business is located in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii).
(s) “Term of Support” means the amount of time a loan is enrolled in the Collateral Support Program, up to a maximum of 60 months from the date of the first disbursement of the loan.

Credits

Note: Authority cited: Sections 39601(a), 39650, 44520, 44559.5(f) and 44559.11(b), Health and Safety Code. Reference: Sections 44559.1, 44559.3, 44559.5 and 44559.11, Health and Safety Code.
History
1. New section filed 8-7-2017 as an emergency; operative 8-7-2017 pursuant to Health and Safety Code section 44520(b) (Register 2017, No. 32). A Certificate of Compliance must be transmitted to OAL by 2-5-2018 or emergency language will be repealed by operation of law on the following day, pursuant to Health and Safety Code section 44520(b).
2. Certificate of Compliance as to 8-7-2017 order, including amendment of section, transmitted to OAL 1-31-2018 and filed 3-15-2018; amendments operative 3-15-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 11).
3. Amendment filed 10-2-2023 as an emergency; operative 10-2-2023 (Register 2023, No. 40). A Certificate of Compliance must be transmitted to OAL by 4-1-2024 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 10-2-2023 order transmitted to OAL 2-13-2024 and filed 3-25-2024 (Register 2024, No. 13).
This database is current through 6/28/24 Register 2024, No. 26.
Cal. Admin. Code tit. 4, § 8078.29, 4 CA ADC § 8078.29
End of Document