94-457-619 Me. Code R. § 4

Current through 2024-51, December 18, 2024

Section 457-619-4 - LOANS

A. Loans under the program must conform to the following requirements:

1. A loan to any individual for eligible costs may not exceed $700, but this limit may be adjusted upward by the Authority from time to time to reflect inflation or cost of living or other necessary adjustments. No individual who receives more than one program loan may receive more than $700 (or such other amount as may have been set by the Authority) in the aggregate;

2. Loans are not subject to interest but are subject to a loan origination fee due to the Authority as set forth in the loan agreement of 5% of the total loan amount;

3. Loans must be repaid in full within 18 months of disbursement by the Authority with interim payments to be made on a schedule established by the Authority and acceptable to the borrower, except that:

(a) In any case of demonstrable hardship, the Authority may, in its discretion, allow extensions of time for repayment or other flexibility in repayment terms; and

(b) Repayment of a loan may not be required until at least sixty days after the borrower has obtained a work permit, except that, if the borrower has obtained a work permit but has not obtained employment, repayment may not be required until at least thirty days after the borrower has obtained employment as long as the borrower is in compliance with the provisions of 22 M.R.S.A. §4316-A.

4. In no event may any person charge an applicant a user fee for providing assistance with preparing and/or submitting an application to the program.

B.Agreement Requirements. An individual who has been approved for a program loan shall enter into an agreement with the Authority, which shall include the following terms and conditions:

1. Agreement by the borrower that they will use the funds only to pay for eligible costs;

2. Agreement by the borrower to repay the loan in compliance with the terms and conditions established by the Authority;

3. Agreement by the borrower to retain copies of receipts for expenditures on eligible costs incurred and provide these to the Authority upon request for auditing or reporting purposes;

4. A provision that, if the borrower breaches the contract with the Authority, the Authority may require immediate repayment of the loan balance to the Authority; and 5. Until the loan is satisfied, the borrower must report any change of address to the Authority within four weeks of any address change.

C. Disbursement from the Fund. Upon approval of an application, the Authority shall determine the amount to be disbursed from the fund to the borrower. Funds will be disbursed directly to and must be used by the borrower pursuant to the agreement entered into between the borrower and the Authority in accordance with subsection B above. Funds shall be disbursed by the Authority in one lump sum.

94-457 C.M.R. ch. 619, § 4