Section 201.6 - [Effective until 2/3/2025] Loan Agreement(a) Before the Office may provide a Zero-Interest Loan to a Participant, the Office and the Participant must enter a Loan Agreement that will set forth the terms and conditions of the Zero- Interest Loan. The Loan Agreement shall ensure the proper use of funds and will include, but is not limited to, provisions with respect to the following: (1) Interest Rate--The Office shall provide a loan at a zero-percent interest rate to an applicant;(2) Amortization--Each loan shall be repaid on a quarterly basis;(3) Maturity--Each loan shall mature seven years after loan origination;(4) Security--The Office shall not take security interest; and(5) Income--All income received on a Disaster Recovery Loan made by a Participant, including the payment of interest by a Micro-Business and the administrative fees assessed by the Participant, remains the property of the Participant.(b) The Office shall specify any other terms and conditions that are reasonable, appropriate, and consistent with the purposes and objectives of the Program.10 Tex. Admin. Code § 201.6
Adopted by Texas Register, Volume 49, Number 42, October 18, 2024, TexReg 8441, eff. 10/7/2024, exp. 2/3/2025 (Emergency)