The Department shall charge and collect an Application Fee of $200 at the time the application is submitted. If the loan is declined or does not close, the Application Fee will not be refunded.
The Department may charge and collect a Commitment Fee in an amount up to one percent (1%) of the approved principal amount of the loan. The Commitment Fee willbe applied at closing of the loan to the Loan Fee specified in section (3) of this rule. If the loan does not close, the Commitment Fee will not be refunded.
The applicant, immediately upon the loan closing, shall pay to the Department a Loan Fee of one and one-half percent (1.5%) of the approved amount of the loan. The amount collected by the Department will be reduced by the amount of the Commitment Fee collected as provided for in section (2) of this rule. If the full amount of the loan is not disbursed, the Loan Fee will not be refunded.
The Department may charge and collect a Modification Fee of up to $200 at the time of the modification request. A loan modification may include, but, is not limited to, modification to terms of repayment, subordination requests, or changes to the collateral or the guarantees. In addition the borrower will be responsible for payment of, separate and above any other amounts owed on the loan, closing costs associated with the modification including, but not limited to, document preparation, review of documentation for legal sufficiency, title, and escrow, recording or filing fees.
Monies referred to in (1), (2), (3) and(4) of this rule, not including closing costs, shall be paid into the Fund.
The Department may, in its sole discretion, use some or all of the money collected under section (3) of this rule, as payment to a contracted Local Development Group for referring projects for financing, packaging the loans, processing applications, investigating proposed business development projects and servicing outstanding loans. In no case shall the Department make any payment of more than one percent (1%) of the loan principal amount for any one project. In no case shall the Department make any payment under this section until the loan has been closed and the Department has collected in full the fee specified in section (3) of this rule.