Sec. 05.13.05.08. Maintaining Certified Minority Business or Small Business Status

A. A borrower that receives a Program loan shall maintain its status as a certified minority business enterprise or a small business for the term of the Program loan.

B. The Department shall notify the Treasurer's Office in writing if the borrower is decertified as a minority business enterprise or no longer meets the definition of a small business for any reason during the term of the Program loan.

C. If a borrower is decertified as a minority business enterprise or disqualified as a small business during the term of the Program loan and upon written notification:

(1) The Treasurer's Office shall reduce the amount of the certificate of deposit purchased from the financial institution under the Program by the amount of the outstanding principal balance of the specified Program loan; and

(2) If permitted by the loan documents, the financial institution may increase the interest rate of the Program loan by the lesser of:

(a) 2 percent; or

(b) The difference between the financial institution’s rate on a 60-month certificate of deposit and the interest rate acceptable to the Treasurer’s Office for its deposits, as determined as of the date that the loan closed.

D. A minority business enterprise that loses its certification or a small business that no longer qualifies as a small business due to revenue or employee growth may not be considered decertified for purposes of this regulation.