8 Colo. Code Regs. § 1207-5, pt. 5

Current through Register Vol. 47, No. 18, September 25, 2024

Part 5 - [Effective until 8/30/2024] Terms and Conditions for Loan Program Loans

5.1. Unless otherwise provided in this rule, the provisions of this Part 5 apply to any loan awarded by the Department as part of the Loan Program.

5.2. Loans will be originated and serviced by one or more Financial Entities upon approval by the Department.

5.3. The maximum amount that may be loaned by the Loan Program to any applicant or group of applicants who have combined to submit an application, regardless of whether the applicant is an Eligible Farmer or Rancher or an Eligible Business, is $750,000.

5.3.1. The maximum amount does not apply to or include any grant funds that may be awarded by the Department or other sources of funding or financing the applicant may obtain.

5.3.2. The Commissioner may allow loan funds to be awarded in an amount above the maximum amount for loans needed to purchase land or in other exceptional circumstances, including but not limited to, circumstances in which five or more of the criteria specified in Part 4 of this rule are satisfied in the judgment of the Commissioner.

5.4. Interest rates for loans will be set at or below the current market rate. The Department, will determine an appropriate interest rate after considering relevant factors, including, but not limited to:

5.4.1. The dollar amount of the loan;

5.4.2. The applicant's ability to repay the loan, including interest; and

5.4.3. The applicant's ability to obtain alternative lending.

5.5. Loan Repayment

5.5.1. Loans issued under the Loan Program shall provide for a repayment period not to exceed twenty years unless the Commissioner determines in their sole discretion that it would be in the best interest of the Department and the State of Colorado to approve a longer repayment period.

5.5.2. Loan repayments shall be monthly unless the Department and the Financial Entity originating the loan determine that a different repayment schedule is appropriate.

5.5.3. Loan repayments, including interest, may be deferred for a period of up to 18 months for good cause as determined by the Commissioner.

5.6. Notwithstanding the provisions of Part 8 of this rule, the Department may enter into a contract with a Financial Entity, allowing such Financial Entity to earn as compensation a portion of the amount of loan repayment, interest, or other fees collected in connection with a loan originated and serviced by the Financial Entity.

8 CCR 1207-5, pt. 5

45 CR 01, January 10, 2022, effective 1/30/2022