Section 974-A - State loans1.State loans. State loans are subject to the following conditions. A. No state loan for any project under this article, the total cost of which exceeds $150,000, may exceed 45% of the project cost and no state loan may be provided for such a project unless the applicant demonstrates a commitment of private funds of at least 10% of the total cost of the project, except that, in order to encourage the undertaking of cooperative projects by 2 or more farmers, no state loan for such a project may exceed 50% of the total cost of the project and no state loan may be provided unless the cooperating farmers as a group demonstrate a commitment of private funds of at least 5% of the total cost of the project. [2017, c. 6, §1(AMD).]B. No state loan for any project under this article, the total cost of which is $150,000 or less, may exceed 55% of the total cost of the project. [2017, c. 6, §1(AMD).]C. State loans must be at the interest rate established pursuant to subsection 2-A. [2021, c. 31, §1(AMD).]D. Other terms and conditions prescribed by rule by the board. [2021, c. 560, §7(AMD).] [2021, c. 560, §7(AMD).]
2.State loan interest rate.[2021, c. 31, §2(RP).]
2-A.State loan interest rate. The interest rate for state loans is the federal prime rate on the date of loan commitment but may not be greater than 5%. Loans current on the effective date of this subsection may be refinanced at the borrower's request to an interest rate of the federal prime rate but not greater than 5%. A fee for administrative costs, which must be at a rate set by rule by the board but may not exceed 1% of the loan, must be charged on a loan made for a project the total cost of which exceeds $50,000. This fee must be deposited in the fund.
[2021, c. 31, §3(NEW).]
3.Approval of loans and grants. The commissioner has authority to approve all loans and grants from the fund. [2013, c. 403, §8(NEW).]
Amended by 2022, c. 560,§ 7, eff. 8/8/2022.Amended by 2021, c. 31,§ 3, eff. 4/7/2021.Amended by 2021, c. 31,§ 2, eff. 4/7/2021.Amended by 2021, c. 31,§ 1, eff. 4/7/2021.Amended by 2017, c. 6,§ 1, eff. 11/1/2017.Amended by 2013, c. 403,§ 6 to § 8, eff. 10/9/2013.1987, c. 319, § 4 (NEW) . 1987, c. 754, § 2 (AMD) . 1999, c. 127, §A14 (AMD) . 2001, c. 125, § 4 (AMD) . 2005, c. 335, § 4 (AMD) .