13-001 Code Vt. R. 13-120-001-X

Current through August, 2024

Section 13 120 001 - REGULATIONS FOR THE VERMONT CHILD CARE LOAN PROGRAM

The Vermont Child Care Loan Program is administered by the State Economic Opportunity Office (SEOO) in cooperation with the Department of Social and Rehabilitation Services, Division of Child Care Services in the Agency of Human Services, Waterbury, Vermont. Loan applications are available at the Child Care Services Division.

Child Care Loan Program Coordinator

Child Care Services Division

103 So. Main Street

Waterbury, Vermont 05676

802 -241-2100

Applications will be mailed on request.

Child Care Loans are to facilitate the development or expansion of child care facilities in Vermont. Child care loans are available to open, renovate, or expand child care facilities. The maximum amount available is $ 2,000 for any registered child care program and $ 10,000 for any licensed child care program. The interest rate is 8 1/2% per year. The term of any loan may not exceed five years.

I. To be eligible for a child care loan, an applicant must:

1. be a Vermont resident or a corporation incorporated in Vermont.

2. be eighteen (18) years or older;

3. be licensable or registerable as a child care provider in Vermont or currently licensed or registered;

4. have insufficient access to conventional sources of credit. Insufficient access means:

a. two lending institutions in applicant's area must have refused to approve a loan for the proposal submitted to Vermont child Care Loan Program or,

b. in the instance that a local lending institution approved the loan, the approval was made under conditions that would seriously jeopardize the proposal's success or the applicant's financial stability;

5. have inadequate financial resources to undertake the proposal without loan assistance.

6. agree to accept referrals of children funded through the Vermont Department of Social and Rehabilitation Services Child Care Programs.

II. All applications are reviewed by the Vermont Child Care Loan Program Coordinator for the following criteria:

1. does the applicant qualify under the eligibility requirements set forth above;

2. is the business proposal feasible;

a. general reasonableness

b. sufficient capital

c. adequate market analysis

d. provisional endorsement by Division of Licensing

e. endorsement as to need

3. Financial/program stability of applicant; ability to repay loan;

4. strength of the collateral offered to secure the loan.

III. Applicants deemed not eligible because they fail to meet the criteria set forth in Section I above are notified immediately by letter that they are not eligible for a child care loan. If the Vermont Child Care Loan Program Coordinator finds the application meets the criteria in Section I, then a determination is made whether or not an application has sufficient merit under the criteria set forth in Section II, items 2-4 for additional processing. If it is determined that the proposal does not have sufficient merit, the applicant shall be notified by letter stating the reasons for denial. If the Coordinator determines that an application has sufficient merit the process shall be as follows:

1. the Child Care Loan Program Coordinator may contact the applicant for additional information about the business proposal. The applicant then prepares a loan proposal packet which is sent to the Child Care Loan State Advisory Board. Assistance in completing the loan proposal may be provided by, the Child Care Loan Program Coordinator.

2. the Child Care Loan Program Coordinator sets a meeting date for the Vermont Child Care Loan Advisory Board.

3. the applicant is notified of the meeting date and is asked to attend to present his/her proposal;

4. the Advisory Board either approves or rejects the loan application by a majority vote (in some instances, special conditions for approval of a loan may be set by the board) and transmits the application to the Director of SEOO for final approval or denial in accordance with guidelines set forth in these procedures;

5. if the loan is approved, the applicant is so notified and a date for closing is established by the State Economic Opportunity Office;

6. if the loan is denied, the applicant receives a letter stating the reasons for denial.

IV. If applicants want to appeal the denial of their loan, they shall use the following procedure:

1. a written request for a hearing before the Human Services Board should be mailed to either the SEOO or the Human Services Board:

c/o Agency of Human Services

103 So. Main Street

Waterbury, Vermont 05676

2. this request must be submitted within 30 days of the applicant's notification of denial;

3. the Human Services Board will schedule a hearing and notify the applicant of the date, place and time;

4. applicants may be represented by counsel and call witnesses or represent themselves.

V. Billing Procedures

1. The SEOO Child Care Loan Program bills loan recipients on a periodic basis according to the terms of their promissory note,

a. a payment is considered past due ten (10) days after the date on which it was due in the State Economic Opportunity Office;

b. a delinquency charge of 5% of the past due payment may be assessed when all or any part of payment is more than ten (10) days past due.

13-001 Code Vt. R. 13-120-001-X

Effective Date: November 1, 1988 (SOS Rule Log #88-47)