1547749 The Commissioner of the Department of Insurance, Securities and Banking hereby gives notice of the final adoption of new chapter 28 entitled "Capital Access Program", to Subtitle C of Title 26.

DISTRICT OF COLUMBIA

DEPARTMENT OF INSURANCE, SECURITIES AND BANKING

 

NOTICE OF FINAL RULEMAKING

 

The Commissioner of the Department of Insurance, Securities and Banking (Department), pursuant to the authority set forth in Mayor’s Order 2011-91, dated May 6, 2011, and section 13 of the Capital Access Program Act of 2010 (Act), effective March 12, 2011 (D.C. Law 18-322; D.C. Official Code §§ 2-1210.01, et seq.)(Supp. 2011), hereby gives notice of the final adoption of a new chapter 28 entitled “Capital Access Program”, to subtitle C of title 26 of the District of Columbia Municipal Regulations.  The rules were adopted as final on August 16, 2011.

 

The purpose of the new chapter is to clarify that the District of Columbia shall pay a one hundred percent (100%) match for loans enrolled in the Capital Access Program (Program) under section 7(d)(2) and (3) of the Act if local appropriated funds are not available to satisfy the enhanced match percentages of one hundred fifty percent (150%) and two hundred percent (200%) required under that section.  A Notice of Emergency and Proposed Rulemaking was published in the D.C. Register on June 24, 2011, at 58 DCR 5343.  No comments were received and no substantive changes were made to the rulemaking.

 

This rulemaking is necessary for the immediate implementation of the Program to ensure the receipt of federal funds under the Small Business Jobs Act of 2010( Pub. L. No. 111-240,124 Stat. 2554) to allow small businesses and nonprofit organizations access to loans to facilitate expansion and employment of local residents in the District of Columbia (District).  The District will receive no less than $ 13.1 million of federal funding offered to participating states who fully comply with the application process.

This final rulemaking will become effective upon publication of this notice in the D.C. Register. 

A new chapter 28 is added to subtitle C of title 26 of the D.C. Municipal Regulations to read as follows:

 

CHAPTER 28

 

CAPITAL ACCESS PROGRAM

 

 

2800                SCOPE

 

2800.1             Unless specified otherwise, these rules shall apply to clarify section 7(d)(2) and (d)(3) of the Capital Access Program Act of 2010 (Act), effective March 12, 2011 (D.C. Law 18-322; D.C. Official Code §§ 2-1210.01, et seq.)(Supp. 2011)

 

2801                AVAILABILITY OF DISTRICT MATCHING FUNDS

 

2801.1             The requirement in section 7(d)(2) of the Act that the Mayor shall deposit in the reserve account for each capital access loan made by a financial institution an amount equal to one hundred fifty percent (150%) of the total amount deposited by the financial institution and the borrower is only effective upon the availability of appropriated local funds sufficient to deposit this percentage.  If sufficient funds are not available to pay one hundred fifty percent (150%), the Mayor shall deposit one hundred percent (100%) of the contributions deposited by the financial institution and the borrower under section 7(b).

 

2801.2             The requirement in section 7(d)(3) of the Act that the Mayor shall deposit in the reserve account for each capital access loan made by the financial institution an amount equal to two hundred percent (200%) of the total amount deposited by the financial institution and the borrower is only effective upon the availability of appropriated local funds sufficient to deposit this percentage.  If sufficient funds are not available to pay two hundred percent (200%), the Mayor shall deposit one hundred percent (100%) of the contributions deposited by the financial institution and the borrower under section 7(b).

 

 

2802                CERTIFYING THE AVAILABILITY OF LOCAL FUNDS FOR THE IMPLEMENTATION OF THE ACT

 

2802.1             Prior to the acceptance of loan applications for loans under the Act, participating financial institutions shall contact the Associate Commissioner for Banking to determine the availability of District funds.

 

 

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