Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 301 - MAINE JOB-START PROGRAM › Section 457-301-3 - Loan Fund Allocation

Current through 2024-29, July 17, 2024
Loan funds and other appropriations available to the
				  Authority for the job-start program shall be allocated to community action
				  agencies which have executed a Contract for the fiscal year and are not in
				  default thereunder in the following manner:
A. Each contracting community action agency
				shall be allocated in each fiscal year an equal portion of the available loan
				funds to be used solely for approved job- start program loans. In each fiscal
				year the Authority may allocate to the contracting community agency less than
				the total, amount available in the job-start loan fund, as it determines is
				necessary to preserve the integrity of the loan fund. After six months, the
				Authority may reallocate the loan funds as deemed prudent by the
				Authority.
B. Repealed effective
				September 18, 1990.
C. New loan
				funds are available from the principal portion of payments received from loan
				recipients. Each contractor will be allocated the principal portion of funds
				paid back by recipients of loans processed by the contractor. The Authority
				will track these funds by contractor and make them available to the
				contractor.
D. The investment
				interest accrued on the loan fund shall be available subject to a 30% match,
				for the administrative expenses of all contracting community action agencies,
				to be provided and paid in accordance with the contracts executed between the
				Authority and the community action agencies, provided that no monies will be
				available for administrative expenses from the investment interest accrued on
				the loan fund until all funds appropriated for use for administrative expenses
				in prior fiscal years have been committed. In addition, each contracting
				community action agency shall receive any amount appropriated by the
				legislature in each fiscal year for purposes of special administration expenses
				of the program in accordance with such appropriation and the contract executed
				between the Authority and agency.
E. In addition to the funds for
				administrative expenses available from the investment interest, each contractor
				will have access to the interest portion of funds paid back by recipients of
				loans processed by the contractor. The Authority will track these funds by
				contractor and make them available to the contractor in accordance with the
				Contracts.
F. If at any time a
				Contract is terminated, the Authority may reallocate the unused balance of loan
				funds previously allocated that contractor, or such portion thereof as the
				Authority may elect, to another contracting community action agency. All
				principal and interest from outstanding loans shall be allocated to the
				contractor servicing the loans in accordance with this rule. The Authority may
				also reallocate unmatched administrative funds to the agency or agencies to
				which unused loan funds are reallocated.
G. In the event the contract provides for the
				community action agency to administer the Maine Job Start Program and for
				control by the community action agency of a portion of the job start revolving
				loan fund for a specified period of time:
1
				The Authority shall establish and divide the loan fund into a separate
				revolving loan fund to be administered by the community action agency.
(a) That portion of the job start revolving
				loan fund to be controlled by the community action agency shall equal that
				portion constituting all loans processed by that community action agency,
				including any and all unpaid principal and accrued interest thereon, less all
				due and proper deductions for administrative expenses of the Authority, and the
				Authority shall transfer and assign to the community action agency all loan
				documentation evidencing the same.