SECTION 200.10. Procedure for Enrollment of a Qualified Loan

(a) 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 funds were dispersed to the Borrower;

(2) making required certifications; and

(3) providing documentation to the Office establishing that the premiums required by §200.9 of this chapter (relating to Contributions to Loan Loss Reserve), have been deposited in the Loan Loss Reserve Account specified in §200.5 of this chapter (relating to Establishment of a Loan Loss Reserve Account).

(b) The Office shall notify a PFI of any deficiencies in the enrollment application submitted under subsection (a)(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.

(c) Upon receipt of documentation satisfying the requirements in subsection (a) of this section and the resolution of any deficiencies noted under subsection (b) 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 §200.7 of this chapter (relating to Qualified Loan Eligibility and Approval) and §200.8 of this chapter (relating to Eligible and Restricted Uses of Texas Small Business Credit Initiative Capital Access 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 from the Fund to meet the Office's contribution under §200.11 of this chapter (relating to State Contributions to Loan Loss Reserve Accounts);

(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.

(d) The Office shall, within a reasonable time after receipt of the information required by this Section, notify the PFI whether a loan is enrolled.

(e) After notifying the PFI that the Qualified Loan has been approved for enrollment, the Office shall transfer from the Fund to the Loan Loss Reserve Account of the PFI a contribution amount detailed in §200.11 of this chapter.

(f) 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.

(g) Without regard to the terms of the Qualified Loan, the term of enrollment in the Program shall not exceed one hundred twenty months from the date of first disbursement of the Qualified Loan.

Source Note: The provisions of this §200.10 adopted to be effective June 25, 2023, 48 TexReg 3217