Section 81.111. Eligible applicants

(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 commit to full time management and control of the enterprise.

(7) The applicant, if he is a natural person, shall commit to work full-time in the enterprise for which he is seeking a loan, and if he is otherwise employed shall terminate employment prior to or at the time of closing.

(8) 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.

(9) 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.

(10) The applicant, if he is a natural person, shall be at least 18 years of age.

(11) The applicant, if he has received prior loans from the Authority, shall be current with respect to amounts due under the loans.

(12) 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.

(13) 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 adopted July 11, 1975, effective July 12, 1975, 5 Pa.B. 1781; amended April 9, 1976, effective April 10, 1976, 6 Pa.B. 881; amended February 6, 1987, effective February 7, 1987, 17 Pa.B. 634. Immediately preceding text appears at serial page (49504).

Notation

Authority

The provisions of this § 81.111 amended under section 9 of the Pennsylvania Minority Business Development Authority Act (73 P. S. § 390.9).

Cross References

This section cited in 12 Pa. Code § 81.121 (relating to application forms); and 12 Pa. Code § 81.124 (relating to additional conditions).