1. (a) Program assistance shall only be used for the following purposes: purchase, development, construction, expansion, acquisition or improvement of child care and development facilities that are, or will be, licensed; related equipment and fixtures; and may be used to refinance existing loans as provided in subsection (b).

   1. (1) Loan proceeds used for improvements shall only be used to fund improvements necessary for any of the following purposes:

      1. (A) to obtain, maintain, renew, expand, or revise a child care license;
      2. (B) to make necessary health and safety improvements;
      3. (C) to make seismic improvements;
      4. (D) to provide access for disabled children.
      5. (E) to expand or preserve existing child care operations
   2. (2) Loan proceeds to a family child care home serving more than six (6) children shall not be used to purchase a home or any real property.
2. (b) The amount of program assistance used to refinance existing loans shall not exceed fifty percent (50%) of the total amount of the guarantied loan, direct loan, or microenterprise assistance. Repayment of an existing loan made for the purpose of purchasing, developing, constructing, expanding, acquiring, or improving a child care and development facility shall not be considered refinancing if the term of the existing loan does not exceed 24 months.
3. (c) Program assistance shall not be used for working capital, supplies, or inventory.
4. (d) Program assistance may be used to pay loan fees and points, other than an application fee.

Note: Authority cited: Section 8277.6(g), Education Code. Reference: Sections 8277.5(d)(1), (d)(2), (e)(1), (e)(2) and 8277.6(d), Education Code.

History

1. New section filed 4-16-99 as an emergency; operative 4-16-99 (Register 99, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-13-99 pursuant to Education Code section 8277.6 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 10-1-99 as an emergency; operative 10-13-99 (Register 99, No. 40). A Certificate of Compliance must be transmitted to OAL by 2-10-2000 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2000, No. 9).

4. New section filed 2-2-2001; operative 2-2-2001 pursuant to Government Code section 11343.4(c) (Register 2001, No. 5).