State Small Business Credit Initiative Lender Certification – Use of Proceeds
This Assurance is referenced by Section 3005(e)(7) of the Small Business Jobs Act of 2010 and includes any financial institution lender that receives a loan, a loan guarantee, or other financial assistance using funds received by a Participating State under the Small Business Credit Initiative.
The Lender hereby certifies to the Participating State the following:
1. The loan has not been made in order to place under the protection of the approved state program prior debt that is not covered under the approved state program and that is or was owed by the borrower to the financial institution lender or to an affiliate of the financial institution lender.
2. The loan is not a refinancing of a loan previously made to that borrower by the financial institution lender or an affiliate of the financial institution lender.
3. No principal of the financial institution lender has been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C. 16911)). For the purposes of this certification, principals is defined as if a sole proprietorship, the proprietor; if a partnership, each partner; if a corporation, limited liability company, association or a development company, each director, each of the five most highly compensated executives, officers, or employees of the entity, and each direct or indirect holder of 20% or more of the ownership stock or stock equivalent of the entity.