§ 5-28-29-17 — Eligible loans

(a) The following types of loans are eligible
loans under the program:
(1) Loans for industrial or commercial purposes.
(2) Loans to refinance loans made for the purposes in subdivision
(1).
(3) Loans for line of credit agreements established between the
lender and borrower that are used for the purposes in subdivision
(1).
(b) Eligible loans must meet the following criteria:
(1) The lender has not made the loan to enroll in the program
prior debt that is not covered under the program and that is or was
owed by the borrower to the lender.
(2) The proceeds of the loan will not be used for that part of a
project or development devoted to housing.
(3) The proceeds of the loan will not be used to finance passive
real estate ownership.
(4) The proceeds of the loan will be used to finance a project or
enterprise that is located in Indiana and that will foster economic
development in Indiana.
(c) An eligible loan may provide for an interest rate, fees, and other
terms and conditions agreed to by the lender and borrower. If the loan
amount to be borrowed is determined by a commitment agreement that
establishes a line of credit, the amount of the loan is the maximum
amount available to the borrower under the agreement.
(d) Notwithstanding any other provision of this chapter, a loan:
(1) originated by an entity:
(A) that is a qualified "eligible intermediary" participating in
the federal Small Business Administration Microloan Program
pursuant to 15 U.S.C. 636(m), as amended from time to time;
and
(B) that is approved as a lender in accordance with the policy
guidelines adopted by the board of the corporation; and
(2) with a principal loan amount that exceeds fifty thousand
dollars ($50,000);
is not an eligible loan under the program.

Legislative History

As added by P.L.162-2007, SEC.24. Amended by P.L.146-2018, SEC.18; P.L.10-2019, SEC.35.