Arkansas Code § 15-5-703 - Definitions

As used in this subchapter:

(1) "Agencies of the United States Government" means federal agencies empowered to make direct loans and provide guaranties backed by the United States Government;

(2) "Amortization payments" means periodic, i.e., monthly, semiannual, annual, etc., payment of interest on and installments of principal of loans guaranteed by the Small Business Revolving Loan Fund;

(3) "Arkansas Development Finance Authority guaranty" means:

(A) A special obligation of the Small Business Revolving Loan Fund; or

(B) A special obligation of the Bond Guaranty Reserve Account as defined in § 15-5-403(8);

(4) "Arkansas Development Finance Authority guaranty premium payment" means a premium payment or payments made to the Bond Guaranty Reserve Account by borrowers receiving guaranties;

(5) "Arkansas Development Finance Authority loans" means direct loans from the Small Business Revolving Loan Fund or from direct loans made by the authority in accordance with provisions of the Arkansas Development Finance Authority Act, §§ 15-5-101 -- 15-5-106, 15-5-201 -- 15-5-205, 15-5-206 [repealed], 15-5-207 -- 15-5-211, 15-5-213, and 15-5-301 -- 15-5-316;

(6) "Authority" means the Arkansas Development Finance Authority;

(7) "Board" means the Board of Directors of the Arkansas Development Finance Authority;

(8) "Direct Fund" means a cash fund used for qualified investments to invest exclusively in Arkansas small businesses, preferably as a co-investor with other professional venture investors or accredited investors as defined in § 15-5-1603, consisting of the total dollar amount of cash funds of the authority from any combination of:

(A) The Venture Capital Investment Trust as defined in § 15-5-1603 that is dedicated and made available by the board; and

(B) An authorized source under § 15-5-711;

(9) "Local financial institutions" means state and local agencies, banks, Arkansas savings and loans, Arkansas development finance corporations, and Arkansas certified development corporations;

(10) "Project" means the project for which proceeds of authority loans are utilized;

(11) "Qualified investment" means any form of investment by the Venture Capital Investment Trust as defined in § 15-5-1603 in the capital structure of a small business:

(A) Through the Direct Fund; or

(B) By investing in or cooperating with other investment entities, including without limitation an accredited investor as defined in § 15-5-1603;

(12) "Small business" means business enterprises with fewer than fifty (50) employees and less than one million dollars ($1,000,000) in gross sales or receipts;

(13) (A) "Small business" means business enterprises with fewer than five hundred (500) employees and less than eighty million dollars ($80,000,000) in gross sales or receipts.

(B) This definition is subject to change by standards and regulations promulgated by the authority;

(14) "Small business investment company" means an entity which is qualified as such under the provisions of section 301 of the Small Business Investment Act of 1958, 15 U.S.C. § 681, and the regulations promulgated thereunder;

(15) "Small Business Loan Committee" means a committee comprised of authority staff members or board members, or both, appointed by the Chair of the Board of Directors of the Arkansas Development Finance Authority and approved by a majority vote of the Board of Directors of the Arkansas Development Finance Authority. The committee is to comply with standards and requirements set by the board in carrying out its function;

(16) "Small-business person" means:

(A) An individual, firm, or corporation, whether for profit or nonprofit, charged with developing the project; or

(B) An individual, firm, partnership, limited liability company, corporation, or any other business entity in any form which owns and operates a small business;

(17) "Small Business Revolving Loan Fund" means the fund created under this subchapter for the purpose of making direct loans and meeting amortization payments of loans guaranteed by the Small Business Revolving Loan Fund;

(18) "Specialized small business investment company" means an entity which is qualified as such under the provisions of section 301(d) of the Small Business Investment Act of 1958, 15 U.S.C. § 681(d) [repealed], and the regulations promulgated thereunder;

(19) "State" means the State of Arkansas; and

(20) "Title IX revolving loan funds" means revolving loan funds operated by regional planning and development districts and authorized by Title IX of the Public Works and Economic Development Act of 1965.

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Last modified: November 15, 2016