15- 214 C.M.R. ch. 5, § 9

Current through 2024-51, December 18, 2024

Section 214-5-9 - LOW-INTEREST LOANS TO BUSINESSES FOR DISASTER RECOVERY ASSISTANCE IN THE ABSENCE OF A FEDERAL DISASTER DECLARATION

1.Limitations on Use of the Fund for Small Business Loans . The Agency will not make direct loans to businesses but may enter into an agreement with a federally or state recognized lending institution to administer a loan program in the event this use of the Fund is activated. This is a Priority 7 use of the Fund.

2.Conditions for this Use of the Fund

A. This use of the Fund will be activated only when the following conditions are met:

(1) The State has not received a federal disaster declaration for Individual Assistance;

(2) The Agency has determined that the number of businesses impacted is not enough to qualify for assistance from the U.S. Small Business Administration;

(3) There are businesses in the disaster impact area that would benefit from and wish to apply for low-interest loans;

(4) There is sufficient balance in the Fund to provide such loans; and

(5) A voluntary organization has been identified that can administer such loans.

B. If the conditions described in paragraph A are satisfied, and the Governor approves activation of the Fund for this purpose, the Agency will execute or activate an existing Memorandum of Understanding (MOU) with the identified voluntary organization to administer loans to qualified applicants.

C. The Memorandum of Understanding with the voluntary organization for this purpose must establish:

(1) An interest rate equivalent to low-interest disaster loans administered by the United States Small Business Administration;

(2) A loan repayment schedule equivalent to the term for low-interest disaster loans administered by the United States Small Business Administration;

(3) The amount of any administrative fees to be charged by the partner agency;

(4) A requirement for the voluntary organization to return to the Fund any unexpended balance at the end of the loan term;

(5) An obligation by the voluntary organization to report annually to the Agency setting forth the number and amount of all loans issued and the status of such loans.

3.Transfer of Funds. The Agency will transfer monies to cover the amount of any loans issued under this section upon notification of loan approval by the voluntary organization.

15- 214 C.M.R. ch. 5, § 9