ARM 17.85.114. LOAN CONDITIONS

(1) The repayment period of a loan may be agreed upon by the borrower and the department, but may not exceed the period set forth in Title 75, chapter 25, part 1, MCA. (2) A borrower shall use the money obtained from a loan made under the Act and these rules only for the purposes described in the loan application. A borrower shall implement a loan project within the time specified in the loan documents unless the department grants a written extension. (3) The department may not issue a loan unless the applicant financially qualifies as credit-worthy based on the evaluation in ARM 17.85.111(3) . (4) The department shall set the loan interest rate annually in January after evaluating: (a) current commercial interest rates for similar loans; (b) administrative costs of the program, including processing and evaluation costs; (c) loan delinquency and default rates; (d) the legislature's requirements for a low interest rate and that the rate be at least 1%; and (e) any other factor the department determines appropriate.