(a) The finance officer shall not execute any loan that is not:
(1) Approved for guarantee by the Small Business Administration, under that agency’s prevailing standards for loans of similar type, purpose, amount, and duration that are in effect at the time the guarantee is approved by the agency.
(2) Approved for guarantee by another governmental loan guarantee authority, and the minimum amount of the guarantee is not less than 50 percent of the principal amount of the loan.
(3) Made pursuant to the corporation’s participation with the Small Business Administration as a small business investment company or local development company.
(4) Less than 16 percent of the total financing package arranged between the corporation and another lender or lenders on behalf of the applicant.
(b) This section does not apply to loans made pursuant to Section 32724.
(Amended by Stats. 1994, Ch. 929, Sec. 1. Effective January 1, 1995.)