Section 457-314-8 - Loan Terms and ConditionsAn applicant, and in the case of eligible quality child care projects, the Authority, may make a loan to an eligible borrower from program funds under the following terms and conditions:
A. Loans may not exceed $350,000 to a borrower (including an affiliated entity) for an eligible project, provided, however, for projects other than quality child care projects, approval of the Authority is required for loans of $150,000 or more, except that those applicants which have received a disbursement from the specially designated fund set forth in Section 6(C) must comply with the limitations set forth therein.B. Loans of less than $50,000 and loans for quality child care projects may be for the total amount of new funds being provided to a borrower. Loans of $50,000 or more for borrowers other than quality child care projects may not exceed one-half (1/2) of the net new funds being provided to a borrower.C. Each applicant shall establish interest rates, amortization schedules and repayment terms for each borrower except that loans for quality child care projects must bear a rate of interest not greater than 5%, and loans for other eligible projects may not bear a rate of interest greater than the prime rate of interest plus seven percent (7%). Direct loans from the Authority for quality child care projects shall be subject to a 1% commitment fee payable to the Authority at the time the commitment is accepted, and shall bear interest at a rate of 5%. No loan may be for a term longer than twenty (20) years.D. When necessary, an applicant may provide for flexible repayment terms and may require additional payments tied to the borrower's financial success.E. An applicant shall require collateral for loans but may subordinate to loans from other lenders.F. Such other terms and conditions as may be determined by an applicant and approved by the Authority.94- 457 C.M.R. ch. 314, § 8