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 Texas Administrative Code (Last Updated: March 27,2024)
 TITLE 10. COMMUNITY DEVELOPMENT
 PART 5. OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE
 CHAPTER 200. TEXAS SMALL BUSINESS CREDIT INITIATIVE
 SUBCHAPTER A. TEXAS SMALL BUSINESS CREDIT INITIATIVE CAPITAL ACCESS PROGRAM

  SECTION 200.9. Contributions to Loan Loss Reserve  

Latest version.
  • (a) When making a Qualified Loan for which a PFI will seek enrollment under the Program, the PFI must require the Borrower to pay a premium payment that is:

    (1) For SEDI-owned businesses and Very Small Businesses, at least 1 percent but not more than 3.5 percent of the principal amount of the Qualified Loan; or

     (2) For all other Borrowers, at least 1 percent but not more than 2.5 percent of the principal amount of the Qualified Loan.

     (b) The PFI must submit a premium payment equal to the premium payment made by the Borrower under this Section. The PFI may charge the Borrower a fee to recover its contribution under this Subsection.

     (c) The PFI shall deposit the premiums specified in subsections (a) and (b) of this section in the Loan Loss Reserve Account created under §200.5 of this chapter (relating to Establishment of a Loan Loss Reserve Account).

     (d) If a Qualified Loan is enrolled, the premiums specified under Subsection (a) of this Section are nonrefundable.

     (e) Notwithstanding subsection (d) of this section, if a Qualified Loan is not enrolled under this section or unenrolled because the Office determines in its sole discretion, the loan is not eligible for the Program, the Office shall refund the premiums deposited under subsection (c) of this section to the requesting PFI as soon as practicable.

     (f) Notwithstanding subsection (a) of this section, PFIs may request authorization from the Office to charge the maximum premiums specified under subsection (a)(1) of this section for all Borrowers, regardless of whether a Borrower is a SEDI-owned business or a Very Small Business. If the Office, in its sole discretion, grants authorization, the PFI may charge all Borrowers a premium up to 3.5 percent of the principal amount of the Qualified Loan. If approved, the PFI shall not pay a premium pursuant to subsection (b) of this section that is less than the premium paid by the Borrower.
Source Note: The provisions of this §200.9 adopted to be effective June 25, 2023, 48 TexReg 3217