(a) Before the Office may provide a Zero-Interest Loan to a Participant, the Office and the Participant must enter a Loan Agreement that will set forth the terms and conditions of the Zero- Interest Loan. The Loan Agreement shall ensure the proper use of funds and will include, but is not limited to, provisions with respect to the following:
- (1) Interest Rate-- The Office shall provide a loan at a zero-percent interest rate to an applicant;
- (2) Amortization--Each loan shall be repaid on a quarterly basis;
- (3) Maturity--Each loan shall mature seven years after loan origination;
- (4) Security--The Office shall not take security interest; and
- (5) Income--All income received on a Disaster Recovery Loan made by a Participant, including the payment of interest by a Micro-Business and the administrative fees assessed by the Participant, remains the property of the Participant.
- (b) The Office shall specify any other terms and conditions that are reasonable, appropriate, and consistent with the purposes and objectives of the Program.
Source Note:The provisions of this §201.6 adopted to be effective January 5, 2025, 49 TexReg 10628.