§ 10 §1026-M — Regional Economic Development Revolving Loan Program

1.
Established.
The Regional Economic Development Revolving Loan Program, referred to in this section as the "program," is established to provide financial assistance to businesses that need assistance in order to create or retain jobs. The authority shall administer the program on behalf of participating eligible economic development corporations or entities. The Regional Economic Development Revolving Loan Program Fund, referred to in this section as the "fund," is established as a revolving fund, into which must be deposited all amounts appropriated to the program, interest earnings on the fund and any amounts repaid to the program by participating corporations. Amounts in the fund must be used by the authority for purposes authorized in this section. The authority shall reserve an amount not less than $300,000 for loans for quality child care projects and may make loans directly to those projects.
2.
Eligible corporations.
The fund is open to local, regional and statewide nonprofit or governmental economic development corporations or entities that are capable of providing financial assistance to businesses in order to create and protect jobs, as well as revitalize downtowns and build strong communities and a sustainable economy, referred to in this section as "corporations." In the case of loans to quality child care projects, the authority may also provide loans directly to eligible borrowers. To be eligible for assistance from the fund:
3.
Disbursements from fund.
If an application is approved, the authority shall determine the amount to be disbursed to the corporation, taking into account:
4.
Contract.
A corporation that has been approved for participation in the program may enter into a contract with the authority. The contract governs the administration of the program and the use of funds. The contract must provide that a corporation shall, at a minimum, conform to the following terms and conditions:
5.
Administrative costs.
A corporation may not use any money disbursed from the fund by the authority for administrative expenses, but may charge a commitment fee of up to 2% and may use interest earnings not to exceed 7% of each loan annually on loans to cover reasonable operating costs, including loan fund management, technical assistance and education. The authority shall review and approve a corporation's administrative expenses on an annual basis. The authority may establish by rule reasonable administrative fees for its administration of the fund.
6.
Financing terms and conditions.
Loans may be made from program funds under the following terms and conditions.
7.
Eligible projects.
In order for a project or borrower to be eligible for financial assistance under the program, the following criteria must be met.
8.
Priorities.
Among eligible applicants, a corporation shall give priority to businesses and projects with the potential of meeting one or more of the following objectives.
9.
Reports.
A corporation shall report at least semiannually to the authority on the projects the corporation funds and the administration of the program. The report must include a description of each project, the amount, type and terms of assistance the project received, the number of jobs that were created or retained and other information the authority requires. The report must contain an accounting of the loan portfolio and any loans that are in default, as well as an accounting of the corporation's administrative and technical assistance expenses incurred and charged to the program.
10.
Audit.
The authority shall review annually each corporation's participation in the program and may, in its discretion, require an independent audit at the expense of the corporation. If the authority determines that a corporation has used funds for ineligible purposes, the corporation shall repay those funds to the authority for deposit into the fund. The authority may not disburse additional funds to a corporation until the corporation has repaid the misapplied funds and has fully complied with its obligations under the contract with the authority.
11.
Written procedures.
The authority shall adopt rules governing the program pursuant to Title 5, chapter 375.

Legislative History

PL 1993, c. 722, §C1 (NEW). PL 1993, c. 722, §C2 (AFF). PL 1999, c. 401, §§OOO1-3 (AMD). PL 2001, c. 639, §§1,2 (AMD). PL 2003, c. 195, §1 (AMD). PL 2007, c. 683, Pt. B, §1 (AMD). PL 2009, c. 131, §§2-6 (AMD). PL 2011, c. 11, §1 (AMD). PL 2013, c. 605, §§1-8 (AMD). PL 2013, c. 605, §9 (AFF).