Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 301 - MAINE JOB-START PROGRAM
Section 457-301-14 - Business Support Groups

Universal Citation: 94 ME Code Rules ยง 457-301-14

Current through 2024-13, March 27, 2024

In addition to the foregoing, the following shall apply only to business support groups. To the extent that anything in this Section 14 is contrary to any of the foregoing, this Section 14 shall govern business support groups.

A. Contract. The Contract between participating community action agencies and the Authority shall contain the following:

1 The Coordinator shall also be responsible for monitoring periodic business support group meetings, business support group fund reporting to the Authority and assistance in preparation of and review of business support group loan applications.

2 The community action agency shall also provide the Authority with a monthly report on business support group funds and status of projects pending.

B. Loan Fund Allocation. Loan funds may be used within each community action agency region for purposes of making loans to members of business support groups. Each community action agency may allocate up to $25, 000 of its annual allocation from the job-start revolving loan fund for purposes of business support group loans. A community action agency may allocate more than $25, 000 of its job-start loan funds for purposes of business support group loans upon approval of the Authority provided that all other contracting community action agencies are in agreement and provided that in no event shall the total of such funds allocated by all contracting community action agencies exceed $25, 000 per contracting community action agency.

C. Eligibility.

1 Business support groups must agree to undergo business management training programs as facilitated by the Authority, 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, then by the community action agency. The community action agencies and each member must agree to provide business support to each other member.

2 In order to be eligible to receive any loans, the members of a business support group must, upon commencement as a group, submit a loan origination accountability plan to the Authority and the community action agency for approval, 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, then the loan origination accountability plan shall be submitted only to the community action agency for approval, setting forth a method by which the group proposes to make loans to its members which shall address incentives for encouraging accountability of the members to each other regarding loan payments and compliance and a schedule for making loans to members which addresses the foregoing.

3 A business support group member may reapply for a loan, provided that any previous business support group loans to that member have been paid in full and the previous loan conditions complied with and provided also that each other member of the business support group has had an opportunity to apply for at least one loan, unless these requirements are unanimously waived by the remaining members of the business support group.

D. Application Procedures. Applications by members of business support groups shall not be subject to the procedures set forth in Sections 6(A) and 6(B) or Sections 8(A-F). Rather, business support groups shall be subject to the following:

1 The Coordinator shall assist members of business support groups in preparing applications and shall review applications prior to submission to a vote of the group.

2 Each business support group shall convene periodically, but at least monthly, at such times and places as is reasonable taking into consideration the volume of applications and agenda discussion items to review completed applications from their members, provide business support to members as necessary and collect any loan payments due.

3 The business support group shall allow the applicant to discuss his or her loan request at its meeting. The business support group shall vote on whether or not to approve the application. A majority vote of the business support group shall be necessary to approve a loan. In the event that a majority vote cannot be obtained to approve the loan, then the recommendation shall be deemed to be a denial. No business support group member may participate in a vote on an application where that member has a direct or indirect pecuniary interest in the outcome of the vote other than as a member of such group.

4 The business support group leader shall keep a loan approval/denial register on each application. This register shall contain the borrower's name, date of approval or denial, loan amount, term, interest rate, payment terms and conditions of the loan. Upon approval of a loan and recording in the loan register, the business support group leader shall notify the Coordinator of the decision and submit the approved loan application to the Coordinator.

5 The Coordinator shall notify the Authority of the business support group's decision and submit the completed loan application to the Authority, 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, then notification shall be given to the community action agency and the completed loan application shall be submitted to the community action agency. The Authority, 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, then the community action agency, may review an application for compliance with this Section 14 and this rule and, notwithstanding the vote of the business support group., may approve or deny an application in accordance with the foregoing.

6 Upon approval by the Authority, 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, then upon approval by the community action agency in accordance with Section 14(d)(5), the loan shall be documented and closed in accordance with this rule. Should the Authority, 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, then should the community action agency, deny an application, the decision shall be final.

E. Loan Terms and Conditions.

1 Loans to a member of a business support group shall not exceed $5,000 in the aggregate.

2 The interest rate shall be fixed as of the date a loan is approved by a business support group.

3 The term of a loan to a member of a business support group shall not exceed three (3) years and such loans shall be repaid in accordance with the recommendation of the business support group.

F. Use of Loan Proceeds. A business support group borrower shall use loan proceeds only for the purposes approved by a business support group and the Authority.

G. Loan Administration.

1 Notes shall be payable to the Authority, 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, then notes shall be payable to the community action agency but payments shall be delivered by the borrower to the business support group leader at a regularly scheduled meeting of the group. All administration, including record-keeping and monitoring, shall be the responsibility of the business support group. The business support group leader shall collect the payments, forward them promptly to the Authority or the community action agency, as the case may be, and provide a weekly update to the Coordinator on the fund status. Payments shall be deemed received upon receipt by the Authority, 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, then upon receipt by the community action agency.

2 If a borrower in a business support group is unable to make a scheduled loan payment, then that payment may be made, by contributions of the remaining business support group members. If the payment is not made no further loan funds will be available to that business support group until the payment is made.

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