Page:United States Statutes at Large Volume 124.djvu/2601

 124 STAT. 2575 PUBLIC LAW 111–240—SEPT. 27, 2010 (1) within 60 days after the date of enactment of this Act, the State has filed with the Secretary a notice of intent to apply for approval by the Secretary of a State capital access program; (2) within 9 months after the date of enactment of this Act, the State has filed with the Secretary a complete applica- tion for approval by the Secretary of a capital access program; (3) the State satisfies the requirements of subsections (a) and (b) of section 3004; and (4) the State capital access program meets the eligibility criteria in subsection (c). (c) ELIGIBILITY CRITERIA FOR STATE CAPITAL ACCESS PRO- GRAMS.—For a State capital access program to be approved under this section, that program shall be required to be a program of the State that— (1) provides portfolio insurance for business loans based on a separate loan-loss reserve fund for each financial institu- tion; (2) requires insurance premiums to be paid by the financial institution lenders and by the business borrowers to the reserve fund to have their loans enrolled in the reserve fund; (3) provides for contributions to be made by the State to the reserve fund in amounts at least equal to the sum of the amount of the insurance premium charges paid by the borrower and the financial institution to the reserve fund for any newly enrolled loan; and (4) provides its portfolio insurance solely for loans that meet both the following requirements: (A) The borrower has 500 employees or less at the time that the loan is enrolled in the Program. (B) The loan amount does not exceed $5,000,000. (d) FEDERAL CONTRIBUTIONS TO APPROVED STATE CAPITAL ACCESS PROGRAMS.—A State capital access program approved under this section will be eligible for receiving Federal contributions to the reserve fund in an amount equal to the sum of the amount of the insurance premium charges paid by the borrowers and by the financial institution to the reserve fund for loans that meet the requirements in subsection (c)(4). A participating State may use the Federal contribution to make its contribution to the reserve fund of an approved State capital access program. (e) MINIMUM PROGRAM REQUIREMENTS FOR STATE CAPITAL ACCESS PROGRAMS.—The Secretary shall, by regulation or other guidance, prescribe Program requirements that meet the following minimum requirements: (1) EXPERIENCE AND CAPACITY.—The participating State shall determine for each financial institution that participates in the State capital access program, after consultation with the appropriate Federal banking agency or, in the case of a financial institution that is a nondepository community development financial institution, the Community Development Financial Institution Fund, that the financial institution has sufficient commercial lending experience and financial and managerial capacity to participate in the approved State capital access program. The determination by the State shall not be reviewable by the Secretary. (2) INVESTMENT AUTHORITY.—Subject to applicable State law, the participating State may invest, or cause to be invested, Determination. Regulations. Deadline. Deadline.