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.
