Current through Register Vol. 54, No. 44, November 2, 2024
(a) To be
eligible to apply for a loan, a loan guarantee or another form of assistance
under the program established by the act, an applicant shall meet the following
criteria, by submitting the information in the form that the Authority
requires:
(1) The applicant shall be a
resident of this Commonwealth or shall certify that residency will be
established on or before closing of the loan.
(2) The applicant shall own or control a
minority business enterprise.
(3)
The applicant shall be financially and legally responsible, based upon criminal
history, credit history and business history.
(4) The applicant and affiliates thereof
shall have paid taxes due and owing to the United States, the Commonwealth or
other level of government, or shall present evidence noting a satisfactory
arrangement to make the payment which has been agreed to by the
parties.
(5) The applicant may be a
sole proprietorship, partnership or corporation. If the enterprise is a
proprietorship, the applicant shall be otherwise eligible and shall manage and
control the enterprise. If the enterprise is a partnership, at least 51% of the
partners shall be socially or economically disadvantaged persons who own a
majority interest that provides for management and control of the enterprise.
If the enterprise is a corporation, its officers and at least 51% of the owners
of the voting stock shall be socially or economically disadvantaged residents
of this Commonwealth.
(6) The
applicant shall maintain complete control over the management of the
enterprise.
(7) The applicant shall
pledge and maintain real and personal property as collateral, in the form and
amount necessary to reasonably assure payment of the loan in the event of
default or bankruptcy.
(8) The
applicant shall demonstrate that he and the enterprise to receive the loan have
the ability to meet existing and projected debt service, including the debt
service required to repay the loan of the Authority.
(9) The applicant, if he is a natural person,
shall be at least 18 years of age.
(10) The applicant, if he has received prior
loans from the Authority, shall be current with respect to amounts due under
the loans.
(11) The applicant shall
show, through experience, training or education, or a combination thereof, that
he is capable of performing the responsibilities in connection with the
ownership, management or control of the enterprise.
(12) The applicant and the enterprise may not
be involved as a debtor in a bankruptcy proceeding.
(b) The Board may consider the financial net
worth of an individual applicant in making its decision to approve or
disapprove an application.
The provisions of this §81.111 amended under section 9 of
the Pennsylvania Minority Business Development Authority Act (73 P.S. §
390.9).
This section cited in 12 Pa. Code §
81.121 (relating to application
forms); and 12 Pa. Code §
81.124 (relating to additional
conditions).