Section 457-301-2 - ContractCommunity action agencies may not participate in the job-start program until they have executed a Contract with the Authority in form to be prescribed by the Authority. The Contract shall contain the following terms and conditions:
A. Each community action agency shall be responsible for the implementation and administration of the job-start program in its region in accordance with the Act, this rule, the Contract and the proposal submitted by the community action agency to the Authority. Each contracting community action agency shall serve any applicant provided that if the applicant is a resident of a region in which a contracting community action agency's other programs are being administered the applicant shall apply to the contracting community action agency serving its region. If the region so served by a community action agency overlaps the region served or to be served by another community action agency which has executed a Contract or which subsequently executes a Contract, then the applicable geographic boundary established between their respective regions by the Division of Community Services shall govern in the event of any conflict.B. The Board of Directors of the community action agency shall appoint an Advisory Board and a Coordinator, and shall ensure that the Advisory Board and Coordinator perform their appointed functions in a fair, competent and effective manner. The Advisory Board shall consist of five (5) members appointed for terms not to exceed two years, and shall contain representatives of low-income people and members with financial and business experience. The Board of Directors may appoint an alternate member to the Advisory Board who shall act as a voting member when any other Advisory Board member is absent or unable to participate because of a conflict. A majority vote of the Advisory Board shall be necessary to recommend approval of an application; a majority shall consist of no less than three (3) votes.C. The Advisory Board shall solicit, review and consider applications from eligible applicants, shall require such additional information and impose such terms and conditions as it may deem necessary or advisable, shall provide advice and counseling to applicants and shall report on applications to the Authority in accordance with this rule.D. The Coordinator shall be responsible for management of the regional job-start program, including assistance to applicants in preparing applications and business plans, and shall also be responsible for liaison with the Authority.E. The community action agencies shall ensure that training is provided for their job-start program staff and that counseling is provided as necessary for loan applicants, and shall involve existing small business technical assistance and counseling programs to the extent available.F. Each community action agency shall be responsible for thirty percent (30%) of its administrative costs of the job-start program, which costs may be derived from direct financial support other than from or through the Authority or in-kind services valued on a reasonable and consistent basis. Contracting community action agencies shall keep accurate records of both direct and in-kind support and shall report such information to the Authority upon request.G. Each community action agency shall provide the Authority with a monthly report indicating loan recommendations made, applications under review and applications received and expected and shall keep inquiry and waiting lists.H. Community action agencies shall be responsible for such monitoring of outstanding loans as the Authority may reasonably require, including periodic reviews of use of loan proceeds, condition of collateral and compliance with business plan. The Authority shall have primary responsibility for collection of loan payments due and enforcement of terms and conditions, but may require such reasonable nonfinancial assistance from the community action agencies as may be within their capacity, 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, in which event loan collection shall be the responsibility of the community action agency.I. In the event that a community action agency fails to carry out its responsibilities under its Contract, the Authority shall notify the Executive Director of the community action agency in writing of such failure, shall specify the actions necessary to bring the community action agency into compliance and shall state that unless the community action agency takes such actions as are necessary to bring it into compliance within sixty (60) days of the mailing of the notice by the Authority, the Contract may be terminated. A community action agency may terminate its Contract with or without cause at any time upon thirty (30) days written notice to the Authority, provided that any monetary or reporting obligations of the community action agency to the Authority shall remain in effect until satisfied.J. Any Contract may also provide that the community action agency is to administer the Maine Job Start Program and may also provide that the community action agency is to control a portion of the Job Start Revolving Loan Fund for a period of time specified by the Authority in the Contract. The Contract may also provide that the community action agency is responsible for the administration of all existing loans made by the Authority upon the recommendation of the community action agency's advisory committee. A Contract may be renewed upon the showing of continued compliance with all requirements. The Authority may enter into a Contract with a community action agency upon the showing by the community action agency that it complies with each of the following requirements: (1) The community action agency must have a jobstart loan board to review and make recommendations concerning loan applications. The loan board must consist of 5 members and include representatives of persons of low income and members experienced in business, lending and financial matters.(2) The agency must prove its capacity to originate prudent loans and to service those loans through:(a) The ability to solicit and screen potential applicants and provide necessary technical assistance to help applicants prepare a business plan and determine the viability of the business, repayment ability and the amount of loan funds needed;(b) The ability to properly document each loan transaction, including the perfection of the interest of the agency in all collateral;(c) The ability to access appropriate legal guidance to ensure adherence to all applicable laws concerning lending, loan administration and collection;(d) The ability to accurately account for all loan repayments;(e) The ability to pursue collection actions;(f) The ability to invest and administer the Job-start Revolving Loan Fund; and(g) Such other criteria as the chief executive officer of the Authority determines necessary to ensure the efficient administration of the program.K. Upon approval of an application by the chief executive officer of the Authority, a Contract will be issued in form and content satisfactory to the chief executive officer of the Authority. The Contract shall incorporate the provisions of all applicable law with regard thereto, including but not being limited to 10 M.R.S.A. §1100-N, as it may hereafter be amended.L. If, upon examination of the application and any supporting information, the chief executive officer of the Authority rejects such application, the community action agency shall be so informed. The notice of the rejection shall provide that the applicant may appeal the chief executive officer's denial of the application to the members of the Authority by notifying the chief executive officer in writing, provided that the chief executive officer receives such notice of appeal within fourteen (14) days after the sending of notice of denial. The appeal shall be heard at a regularly scheduled meeting of the members as soon as it can reasonably be scheduled, and the applicant must be present to support the appeal. The members of the Authority shall not overturn the decision of the chief executive officer unless the members determine that the rejection by the chief executive officer was arbitrary, capricious or an abuse of discretion. If such a determination is made, the members may reverse or modify the decision of the chief executive officer and may direct the chief executive officer to take further action with respect to the application.94- 457 C.M.R. ch. 301, § 2