2005 Connecticut Code - Sec. 17b-749h. Child care facilities direct revolving loan program. Regulations.
Sec. 17b-749h. Child care facilities direct revolving loan program. Regulations. (a) There is established a program to be known as the "child care facilities direct
revolving loan program". The program shall contain any moneys required by law to be
deposited in the program, including, but not limited to, any moneys appropriated by the
state, premiums, fees, interest payments and principal payments on direct loans and
proceeds from the sale, disposition, lease or rental of collateral relating to direct loans.
Any balance remaining in the program at the end of any fiscal year shall be carried
forward in the program for the next succeeding fiscal year. The program shall be used
to make loans pursuant to subsection (b) of this section, to make loan guarantees and
to pay reasonable and necessary expenses incurred in administering loans and loan
guarantees under this section. The Commissioner of Social Services may enter into a
contract with a quasi-public agency, banking institution or nonprofit corporation to
provide for the administration of the loan program, provided no loan or loan guarantee
shall be made from the fund without the authorization of the commissioner as provided
in subsection (b) of this section.
(c) The amount of a direct loan under this section may be up to eighty per cent of the total amount of investment but shall not exceed twenty-five thousand dollars for such facility as determined by the commissioner except that if an applicant for a loan under this section has an existing loan that is guaranteed by the child care facilities loan guarantee program, established under section 17b-749g, the direct loan provided under this section shall not exceed twenty per cent of the investment. The amount of any guarantee and a direct loan under this section shall not exceed eighty per cent.
(d) Each provider applying for a loan under this section shall submit an application, on a form provided by the commissioner that shall include, but is not limited to, the following information: (1) A detailed description of the proposed or existing child care facility; (2) an itemization of known and estimated costs; (3) the total amount of investment required to expand or develop the child care facility; (4) the funds available to the applicant without financial assistance from the department; (5) the amount of financial assistance sought from the department; (6) information relating to the financial status of the applicant, including, if available, a current balance sheet, a profit and loss statement and credit references; and (7) evidence that the loan applicant shall, as of the loan closing, own, have an option to purchase or have a lease for the term of the loan. Security for the loan may include an assignment of the lease or other subordination of any mortgage and the borrower shall be in default if the loan is not used for the intended purpose.
(e) Payments of principal and interest on such loans shall be paid to the State Treasurer for deposit in the child care facilities direct revolving loan program established in subsection (a) of this section.
(f) The Commissioner of Social Services may adopt regulations, in accordance with chapter 54, to carry out the provisions of this section. Such regulations may clarify loan procedures, repayment terms, security requirements, default and remedy provisions, and such other terms and conditions as said commissioner shall deem appropriate.
(P.A. 97-259, S. 16, 41; P.A. 99-230, S. 8, 10.)
History: P.A. 97-259 effective July 1, 1997; P.A. 99-230 amended Subsec. (c) to increase the cap from ten thousand to twenty-five thousand dollars, effective July 1, 1999.
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