OAR 123-130-0070: Forgivable Loan Agreement Conditions

(1) Forgivable loans do not require match. Applicants will be responsible for closing costs associated with the loan including but not limited to document preparation, title, escrow, recording or filing fees. (2) The Department shall set at time of award the interest rate and term for forgivable loans that must be repaid in accordance with ORS 285A.196(2). (3) The Department will include interest accrual, repayment and disbursement schedules, timing of repayment determination, and other necessary conditions in the loan agreement. (4) If the project includes other funding in the form of loan(s) obtained from a financial institution, the Department may subordinate the Fund loan to the financial institution loan(s) if appropriate, in the Department’s sole discretion. (5) Notwithstanding applicant and project eligibility, the amount of a forgivable loan award shall be based on the availability of forgivable loan funds at the time of the award. The Department has the discretion to make forgivable loan awards less than the amount requested in the application if it is necessary to ensure forgivable loan capacity until further allocation to the Fund may be received.