Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 301 - MAINE JOB-START PROGRAM › Section 457-301-2 - Contract

Current through 2024-29, July 17, 2024
Community action agencies may not participate in the
				  job-start program until they have executed a Contract with the Authority in
				  form to be prescribed by the Authority. The Contract shall contain the
				  following terms and conditions:
A.
				Each community action agency shall be responsible for the implementation and
				administration of the job-start program in its region in accordance with the
				Act, this rule, the Contract and the proposal submitted by the community action
				agency to the Authority. Each contracting community action agency shall serve
				any applicant provided that if the applicant is a resident of a region in which
				a contracting community action agency's other programs are being administered
				the applicant shall apply to the contracting community action agency serving
				its region. If the region so served by a community action agency overlaps the
				region served or to be served by another community action agency which has
				executed a Contract or which subsequently executes a Contract, then the
				applicable geographic boundary established between their respective regions by
				the Division of Community Services shall govern in the event of any
				conflict.
B. The Board of Directors
				of the community action agency shall appoint an Advisory Board and a
				Coordinator, and shall ensure that the Advisory Board and Coordinator perform
				their appointed functions in a fair, competent and effective manner. The
				Advisory Board shall consist of five (5) members appointed for terms not to
				exceed two years, and shall contain representatives of low-income people and
				members with financial and business experience. The Board of Directors may
				appoint an alternate member to the Advisory Board who shall act as a voting
				member when any other Advisory Board member is absent or unable to participate
				because of a conflict. A majority vote of the Advisory Board shall be necessary
				to recommend approval of an application; a majority shall consist of no less
				than three (3) votes.
C. The
				Advisory Board shall solicit, review and consider applications from eligible
				applicants, shall require such additional information and impose such terms and
				conditions as it may deem necessary or advisable, shall provide advice and
				counseling to applicants and shall report on applications to the Authority in
				accordance with this rule.
D. The
				Coordinator shall be responsible for management of the regional job-start
				program, including assistance to applicants in preparing applications and
				business plans, and shall also be responsible for liaison with the
				Authority.
E. The community action
				agencies shall ensure that training is provided for their job-start program
				staff and that counseling is provided as necessary for loan applicants, and
				shall involve existing small business technical assistance and counseling
				programs to the extent available.
F. Each community action agency shall be
				responsible for thirty percent (30%) of its administrative costs of the
				job-start program, which costs may be derived from direct financial support
				other than from or through the Authority or in-kind services valued on a
				reasonable and consistent basis. Contracting community action agencies shall
				keep accurate records of both direct and in-kind support and shall report such
				information to the Authority upon request.
G. Each community action agency shall provide
				the Authority with a monthly report indicating loan recommendations made,
				applications under review and applications received and expected and shall keep
				inquiry and waiting lists.
H.
				Community action agencies shall be responsible for such monitoring of
				outstanding loans as the Authority may reasonably require, including periodic
				reviews of use of loan proceeds, condition of collateral and compliance with
				business plan. The Authority shall have primary responsibility for collection
				of loan payments due and enforcement of terms and conditions, but may require
				such reasonable nonfinancial assistance from the community action agencies as
				may be within their capacity, unless the Authority has provided that the
				community action agency shall administer the Maine Job Start Program and
				control a portion of the job start revolving loan fund, in which event loan
				collection shall be the responsibility of the community action
				agency.
I. In the event that a
				community action agency fails to carry out its responsibilities under its
				Contract, the Authority shall notify the Executive Director of the community
				action agency in writing of such failure, shall specify the actions necessary
				to bring the community action agency into compliance and shall state that
				unless the community action agency takes such actions as are necessary to bring
				it into compliance within sixty (60) days of the mailing of the notice by the
				Authority, the Contract may be terminated. A community action agency may
				terminate its Contract with or without cause at any time upon thirty (30) days
				written notice to the Authority, provided that any monetary or reporting
				obligations of the community action agency to the Authority shall remain in
				effect until satisfied.
J. Any
				Contract may also provide that the community action agency is to administer the
				Maine Job Start Program and may also provide that the community action agency
				is to control a portion of the Job Start Revolving Loan Fund for a period of
				time specified by the Authority in the Contract. The Contract may also provide
				that the community action agency is responsible for the administration of all
				existing loans made by the Authority upon the recommendation of the community
				action agency's advisory committee. A Contract may be renewed upon the showing
				of continued compliance with all requirements. The Authority may enter into a
				Contract with a community action agency upon the showing by the community
				action agency that it complies with each of the following requirements:
(1) The community action agency must have a
				jobstart loan board to review and make recommendations concerning loan
				applications. The loan board must consist of 5 members and include
				representatives of persons of low income and members experienced in business,
				lending and financial matters.
(2)
				The agency must prove its capacity to originate prudent loans and to service
				those loans through:
(a) The ability to
				solicit and screen potential applicants and provide necessary technical
				assistance to help applicants prepare a business plan and determine the
				viability of the business, repayment ability and the amount of loan funds
				needed;
(b) The ability to properly
				document each loan transaction, including the perfection of the interest of the
				agency in all collateral;
(c) The
				ability to access appropriate legal guidance to ensure adherence to all
				applicable laws concerning lending, loan administration and
				collection;
(d) The ability to
				accurately account for all loan repayments;
(e) The ability to pursue collection
				actions;
(f) The ability to invest
				and administer the Job-start Revolving Loan Fund; and
(g) Such other criteria as the chief
				executive officer of the Authority determines necessary to ensure the efficient
				administration of the program.