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§ 8078.10. Loan Enrollment.

4 CA ADC § 8078.10Barclays Official California Code of Regulations

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
4 CCR § 8078.10
§ 8078.10. Loan Enrollment.
(a) The terms and conditions of the Qualified Loans, including rates, fees and other conditions, shall be determined solely by agreement of the Participating Financial Institution and the Borrower.
(b) A Participating Financial Institution shall be authorized to enroll under the Program all or a part of any Qualified Loan:
(1) by notifying the Authority in writing, within 15 business days after the Qualified Loan is made, that it is enrolling a Qualified Loan. For purposes of this section, the date on which the Participating Financial Institution makes a Qualified Loan is the date on which the Participating Financial Institution first disburses proceeds of the Qualified Loan to the Borrower; and
(2) by transmitting to the Authority the Fees collected from the Participating Financial Institution and the Borrower in connection with the Qualified Loan, and by providing written evidence that the Fees have been deposited in a Loss Reserve Account held either by the Participating Financial Institution or the Program Trustee.
(c) A Participating Financial Institution may enroll all or any portion of a Qualified Loan in the Program by submitting a CalCAP/ADA Loan Enrollment Application which shall include the following information:
(1) The official business name of the Borrower, including a “Doing Business As” if any, and the business address.
(2) Name and title of individual(s) responsible for signing for the Qualified Loan on behalf of the Borrower(s).
(3) Brief description of the Borrower's business and regular activities and either the SIC Code(s) or the NAICS Code(s) applicable to such business, and the amount of its annual revenues.
(4) Brief summary of the intended use of the proceeds of the Qualified Loan consistent with uses permitted as Eligible Costs.
(5) Location(s) of the Small Business Facility.
(6) Amount of the Qualified Loan being enrolled in the Program, and total loan amount if different, and the Participating Financial Institution loan number.
(7) Whether the Qualified Loan is secured, unsecured, or a term loan.
(8) Date of the Qualified Loan.
(9) Interest rate applicable to the Qualified Loan.
(10) Term or maturity date of the Qualified Loan.
(11) Whether the loan is for alteration(s) or retrofit(s) of a Small Business Facility located in a Severely Affected Community.
(12) The Participating Financial Institution's certification as to the number of full-time equivalent employees currently employed by the Borrower.
(13) The Participating Financial Institution's certification that the loan is a Qualified Loan, and that the business receiving the Qualified Loan is a Qualified Business.
(14) The Participating Financial Institution's certification upon enrollment of a Qualified Loan that the proceeds of the loan will be used for the Eligible Costs of an Eligible Project.
(15) The Participating Financial Institution's certification that, upon request of the Executive Director, the Participating Financial Institution will provide information from the financial records of the Borrower, and that the Participating Financial Institution has obtained the consent of the Borrower to such disclosure.
(16) The Participating Financial Institution's certification that the total amount of loans for the borrower enrolled in the CalCAP/ADA program does not exceed $50,000.
(17) The Participating Financial Institution's certification that it has obtained a written representation from the Borrower that the Borrower has no legal, beneficial or equitable interest in the CalCAP/ADA Contribution.
(18) The Participating Financial Institution's certification that the Borrower has provided a CASp Report and a Cost Estimate and that the physical alterations or retrofits to be financed are included in the CASp Report.
(19) The Participating Financial Institution's certification that the Borrower will provide all applicable licenses or permits needed for the construction related retrofit(s) or alteration(s).
(20) Acknowledgment that the lending activities of the Participating Financial Institution are subject to any applicable safety and soundness standards as set forth in applicable lending regulations.
(21) The Participating Financial Institution shall be authorized to certify to the information requested by subsections (12), (13), (14), (18) and (19) above based upon the Participating Financial Institution's established due diligence and underwriting standards, and shall maintain substantiating documentation in the Borrower's loan file.
(22) Certification from the Participating Financial Institution that it has not, and will not, enroll the Qualified Loan, or any portion thereof, in any other Capital Access Loan Program for Small Business offered by the Authority as long as funds are available for this Program.
(23) Certification from the Participating Financial Institution that it has provided the Borrower the CPCFA's Privacy Notice for the CalCAP/ADA Financing Program, which provides the notice required under the California Information Practices Act (CIPA) (Civil Code section 1798.17). The Privacy Notice for the CalCAP/ADA Financing Program informs the Borrower that personal information protected by the CIPA may be disclosed under the following circumstances:
(A) To consultants, auditors or contractors retained by the CPCFA where disclosure is required to fulfill CalCAP program requirements and subject to a nondisclosure agreement;
(B) To another governmental entity where required by state or federal law; or
(C) As otherwise required by law.
(24) The submittal of a completed Borrower's Eligibility Criteria and Self-Certification form in which the Borrower certifies to the following:
(A) That, when applicable, it satisfies the definitions in Sections 8078.8(f), (g), (i), (k) and (l) of the California Americans with Disabilities Act Small Business Capital Access Financing Program Regulations;
(B) The facility is located within the boundaries of the State of California;
(C) The Borrower has legal control of the facility for a term that is equal to or greater than the length of the enrolled loan, and assumes financial liability of the loan;
(D) The Borrower agrees to allow the participating financial institution to provide information from financial records of the Borrower upon request of the Executive Director of CPCFA;
(E) The Borrower has no legal, beneficial, or equitable interest in the CalCAP/ADA Contribution;
(F) If the physical alteration(s) or retrofit(s) financed through this Program is a part of a larger construction project carried out by the Borrower, the enrolled amount of the loan in this Program is limited to Eligible Costs necessary and allocable to the Eligible Project;
(G) The Borrower will provide all applicable licenses and permits needed for construction related retrofit(s) or alteration(s) to the Participating Financial Institution;
(H) The Borrower has provided a CASp report and a Cost Estimate to the Participating Financial Institution and that the physical alterations or retrofits to be financed are included in the CASp Report;
(I) The Borrower's certification that the proceeds of the loan will be used for the Eligible Costs of an Eligible Project;
(J) The Borrower agrees to allow CPCFA staff or its designee to inspect the project site;
(d) Upon enrollment of a Qualified Loan, the Participating Financial Institution shall elect a Contribution between 2 and 3.5 percent of the Qualified Loan, and shall deposit the Participating Financial Institution's and Borrower's Contributions each in the elected amount into the Participating Financial Institution's Loss Reserve Account established for the CalCAP/ADA Program pursuant to Section 8078.11.
(e) Upon verification of the deposit of the Participating Financial Institution's and Borrower's Contributions, all Qualified Loans shall receive a CalCAP/ADA Contribution equal to four times the amount of the Participating Financial Institution's Contribution.
(f) All Qualified Loans that support Eligible Projects located in a Severely Affected Community shall receive an additional CalCAP/ADA Contribution in the amount equal to the Participating Financial Institution's Contribution.
(g) Without regard to the terms of the loan, the term of enrollment in the Program shall not exceed sixty (60) months from the date of first disbursement of the Qualified Loan.
(h) Upon enrollment in the CalCAP/ADA Program, the Borrower may request a Reimbursement by submitting a CASp Report Reimbursement request to the Authority, which shall include the following information:
(1) Borrower's name, address, phone number, and e-mail address.
(2) Loan amount enrolled in CalCAP/ADA Program, loan disbursement date, and invoice for the cost of the CASp Inspection Report.
(3) A copy of the notice of access inspection completed by the CASp pursuant to Civil Code Section 55.53.
(4) Statement that the Borrower agrees to provide any additional information regarding the use of proceeds under the loan to the Program Trustee, if requested prior to the issuance of the Reimbursement amount.
(i) Upon verification of the eligibility of the Borrower's Reimbursement request, the Authority shall instruct the Program Trustee to disburse the Reimbursement to the Borrower within thirty (30) business days.

Credits

Note: Authority cited: Sections 44520, 44559.5, 44559.11 and 44559.13, Health and Safety Code. Reference: Sections 44559.2, 44559.4 and 44559.13, Health and Safety Code; and 42 U.S.C. Section 12101.
History
1. New section filed 8-29-2016 as an emergency; operative 8-29-2016 (Register 2016, No. 36). This filing is deemed an emergency pursuant to Health and Safety Code section 44520(b). A Certificate of Compliance must be transmitted to OAL by 2-27-2017 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 2-15-2017 as an emergency; operative 2-28-2017 (Register 2017, No. 7). A Certificate of Compliance must be transmitted to OAL by 5-29-2017 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 2-15-2017 order, including amendment of subsections (c)(3), (c)(7), (c)(24)(A) and (c)(24)(G) and amendment of Note, transmitted to OAL 3-27-2017 and filed 5-8-2017; amendments operative 5-8-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 19).
4. New subsections (h)-(i) and amendment of Note filed 12-21-2017 as an emergency; operative 12-21-2017 (Register 2017, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2018 or emergency language will be repealed by operation of law on the following day.
5. Reinstatement of section as it existed prior to 12-21-2017 emergency amendment by operation of Government Code section 11346.1(f) (Register 2018, No. 44).
6. New subsections (h)-(i) and amendment of Note filed 11-2-2018; operative 11-2-2018 pursuant to Government Code section 11343.4(b) (Register 2018, No. 44).
This database is current through 7/5/24 Register 2024, No. 27.
Cal. Admin. Code tit. 4, § 8078.10, 4 CA ADC § 8078.10
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