A relevant investment is one where the CDFI makes a secured or unsecured loan to a qualifying enterprise (see ¶325-650) or subscribes for shares in, or securities issued by, such an enterprise.

For this purpose the CDFI does not make a loan if it provides overdraft facilities for the enterprise. However, where a loan agreement allows the enterprise to draw down amounts over a period of time, that is a relevant investment made at the time the first amount is drawn down. The amount of that investment at any point in time is the total amount drawn down at that time (SI 2003/96, reg. 11). In addition, a subscription or other acquisition of securities is not regarded as the making of a loan.

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