Section 81.132. Guarantee provisions

(a) Loan guarantee. The Authority may guarantee loans made to a minority business enterprise under the same standards established for the granting of loans.

(b) Equity guarantee. The Authority may guarantee up to 50% of equity investments in a minority business enterprise made by a person, partnership, corporation or other entity not then an equity holder or involved in the management of the minority business enterprise or in any way related to the enterprise, its current shareholders, officers or other management personnel, to be made on terms and conditions as may be determined by the Board in its sole discretion.

(c) Dollar value limitation. The dollar value limitation of the equity and loan guarantee shall be the same as that of the loans under the program.

(d) Escrow. Upon the guarantee of a loan, 100% of the outstanding guaranteed balance of the loan shall be placed in escrow by the Authority for the term of the loan.

The provisions of this § 81.132 adopted July 11, 1975, effective July 12, 1975, 5 Pa.B. 1781; amended February 6, 1987, effective February 7, 1987, 17 Pa.B. 634. Immediately preceding text appears at serial page (49506).

Notation

Authority

The provisions of this § 81.132 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 § 81.112 (relating to eligible projects).