6 Miss. Code. R. 9-5.6

Current through October 10, 2024

Rule 6-9-5.6 - Supported Transactions Information

SBLF supported transactions with the participant must include a disclosure form of all key terms in an easy-to-understand manner. Such disclosures should include, for example, the loan or investment amount; payment obligation and schedule; any terms giving the participant control over the borrower's or investee's cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs.

SBLF-supported transactions must follow the SSBCI's rate cap. The interest rate for each individual loan, at the time of obligation and throughout the term of the loan, may not exceed the National Credit Union Administration's (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board.

SBLF-supported transactions may not have certain features, including any of the following:

1. Confessions of judgment;

2. Prepayment or "double-dipping" fees; or

3. Upfront fees or charges paid by the small business, excluding fees to the program, that exceed 3 percent for loans greater than $25,000 or $500 for loans under $25,000.

a. Lenders and borrowers may negotiate transaction terms as long as they are within the parameters established by these minimum standards, any additional requirements of the jurisdiction, and any applicable federal requirements.

6 Miss. Code. R. 9-5.6

Miss. Code Ann. § 57-10-601; 12 USC § 5701 et seq.; 12 U.S.C. § 1757; 12 C.F.R. part 215 .

Amended 12/26/2023