Program Terms

Program Terms. • “Community Development Financial Institutions (CDFI)” has the meaning given that term as under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994, 12 U.S.C. § 4702. • “Community Development Financial Institutions (CDFI) Loan Fund (Participants)” means a CDFI that provides debt financing and development services to businesses, organizations, and individuals in low-income communities. • “Borrower” means the business person or entity borrowing and accepting the loaned funds from the Lender. • “Private financing” means equity investments, written commitments of future equity investments, term loans, lines of credit, and any new infusions of cash by the small business owner into the borrower. • “Upfront fees” for the purpose of this program include but are not limited to application fees, origination fees, and document preparation fees. • “Passive real estate investment” means most real estate development (including construction) in which the developer does not intend to occupy or actively use the resulting real property. • “Socially and Economically Disadvantaged Individual (SEDI) Owned Business”- for the purposes of this program means: o Business enterprises that certify that they are owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances, due to their: ▪ membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society; ▪ gender; ▪ veteran status; ▪ limited English proficiency; ▪ physical handicap; ▪ long-term residence in an environment isolated from the mainstream of American society; ▪ membership of a federally or state-recognized Indian Tribe; ▪ long-term residence in a rural community; ▪ residence in a U.S. territory; ▪ residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization: or ▪ membership of another underserved community as defined in U.S. Executive Order 13985; o Business enterprises that certify that they are: ▪ owned and controlled by individuals whose residences are in CDFI investment areas, as defined in prevailing federal guidelines issued by the U.S. Treasury; o Business enterprises that certify that they will: ▪ operate a location in a CDFI investment area, as defined in prevailing federal guidelines issued by the U.S. Treasury; or ▪ business enterprises that are located in CDFI Investment Areas, as defined in prevailing federal guidelines issued by the U.S. Treasury.