NAC612.679. Conditions for approval of loans.

     1. A nonprofit private entity which administers the disbursement of money received as a grant pursuant to the program may approve an individual loan of up to $5,000 to a start-up business without the approval of the Administrator. The Administrator may waive the loan limit prescribed in this subsection for a loan not exceeding $10,000.

     2. A loan may not be made to:

     (a) An applicant for a loan by the person responsible for approving the loan on behalf of the nonprofit private entity if the person approving the loan has a dating relationship with the applicant or is a relative of the applicant within the third degree of consanguinity or affinity;

     (b) A start-up business owned wholly or in part by any person who is an employee of the nonprofit private entity or under a contract of service to the nonprofit private entity; or

     (c) A start-up business which has not complied with the provisions of chapter 76 of NRS or which fails to demonstrate compliance with applicable requirements governing contributions or industrial insurance pursuant to the provisions of chapter 612 or 616C of NRS.

     3. An applicant for a loan pursuant to this section must submit to the nonprofit private entity a business plan which clearly identifies and explains the intended use of the loan in the manner prescribed by the nonprofit private entity.

     4. An applicant for a loan may not have more than one loan which is obtained pursuant to this section and which is in repayment, except that a borrower who has repaid such a loan pursuant to NAC 612.683 may apply for another loan for the purposes of expanding the business if the business still qualifies as a start-up business.

     5. Any legally organized business entity which receives a loan from a nonprofit private entity pursuant to this section:

     (a) May use the money for business-related costs, including, without limitation, costs associated with the start-up of the business and licensing and permitting; and

     (b) May not, in any manner, use any portion of the money for expenses commonly considered personal in nature.

     6. As used in this section, “dating relationship” has the meaning ascribed to it in NAC 284.0533.

     (Added to NAC by Employm’t Security Div. by R128-09, eff. 4-20-2010)