§4747 Reimbursement by Fund

Summary

The Fund must pay a participating State back 50 percent of that State’s contributions to certain reserve funds. The Fund must make that payment within 30 calendar days after it gets the required report. It will keep reimbursing States as reports come in until the Fund’s money is gone. The Fund will not reimburse loans to a borrower with 500 or more employees when the loan is enrolled. A State’s reimbursements for loans to any one borrower or related group cannot exceed $75,000 in any 3-year period. If a financial institution’s total enrolled loans stay at or below $2,000,000, reimbursement is the lesser of 75 percent of the premiums paid or 5.25 percent of the loan’s covered amount. Once the institution has $2,000,000 or more in enrolled loans, reimbursement is the lesser of 50 percent of the premiums or 3.5 percent of the covered amount. If a loan makes the total go over $2,000,000, apply the under-$2,000,000 rule to the part up to $2,000,000 and the over-$2,000,000 rule to the rest. “Common enterprise” is defined in part 32 of title 12 of the Code of Federal Regulations.