'09, March, At Loan Process

State of Alaska, Department of Labor and Workforce Development Division of Vocational Rehabilitation (DVR) Assistive Technology Loan Fund The AT Loan Fund was established to help improve the quality of life for individuals with disabilities through a flexible loan option program that allows them to purchase needed Assistive Technology (AT) to improve independence and productivity which will decrease the need for public support. This option may allow the customer to access a lower interest rate and/or longer term repayment timelines based on their individual needs. Each loan recipient is legally obligated to pay their loan back per the signed loan documentation. The State guarantees 90% of this loan while the commercial bank covers the remaining 10% guarantee. A. Guidelines • • •

•

Maximum loan amount is $40,000 Minimum loan amount is $2,500 Interest Rate on AT loans is set with the maximum rate based on the published Wall Street Journal Prime rate. The minimum rate depends on the final approval of interest buy-down requests as noted above. The rate is established on a case by case basis with the initial recommendation made by the lending institution (Northrim Bank) and reviewed and approved by the AT Loan Fund representative Sean O’Brien at DVR). Qualified consumer may obtain a second loan from fund provided that the existing loan is in good standing and the total of the two loans does not exceed the maximum allowable loan amount.

B. Eligibility • •

• •

• •

Must be a person with a disability, their representative(s) or parent Must be used to purchase Assistive Technology (AT) such as, but not limited to vehicle modifications, housing modifications, durable medical equipment, off the shelf customized products that improve the quality of life for individual with disabilities Loans to purchase vehicles are not allowed For a loan to modify a vehicle to provide transportation for a person with a disability, the applicant must have been employed for at least ninety (90) days immediately preceding the date of the loan application. Must be demonstrated that the AT requested has the potential to improve that individual’s quality of life, independence, or ability to function productively. Must work with other funding sources to ensure that the funding for AT is not available through less expensive means before applying to the AT Loan Fund for a loan. This includes funding through other

agencies or programs or eligibility for a conventional consumer loan, notwithstanding extenuating factors. C. AT Loan Process •

•

• • • •

• • • • •

The loan applicant and/or their legal representative contacts the DVR representative for verification that individual or representative(s) is eligible for the AT Loan Program. If they qualify, the DVR representative notifies the participating Bank of the qualification. After the Bank receives the approval to proceed, Northrim will mail out the Consumer Credit Application along with a self stamped envelope. The completed application can then be mailed back or faxed back to (907) 263 3219. Bank will underwrite received application and make a recommendation to approve or decline based on AT Loan Fund Guidelines. Bank will contact the AT Loan representative to discuss recommended decision. If declined, Bank will send out the Notice of Decline letter to borrower(s) If approved, the Bank and AT representative will determine the appropriate rate and term based on individual needs and determine if the request warrants a interest buy down consideration Bank will produce loan documents for approved request and borrower(s) would sign the documentation at the most convenient Northrim Bank Branch location. If there is not a convenient Northrim Bank Branch, Loan can be completed using US Postal Service but documents would require a notary for verification of signature. Bank to provide Payment coupons to cover installment schedule for loan Bank to collect and process all payments from borrower(s) Approved Loan reported to the Credit Bureau If account reaches a past due status, Bank to send late notices and make collection calls according to established guidelines Provide quarterly reporting to the State of Alaska on total amount loaned, payments received and any delinquent accounts.

CONTACTS: Assistive Technology Loan Fund Sean O’Brien; e-mail: [email protected] 801 W. 10th St., Suite A Juneau, Alaska 99801 1-800-478-2815 (toll free) (907) 465-6969, fax: (907) 465-2856 Northrim Bank Contact: Angela Freeman 2709 Spenard Road P.O. Box 241489 Anchorage, Alaska 99524-1489 (907) 261-6206

(updated 03/12/09, SKO)