§4747 Reimbursement by Fund

Summary

The Fund must repay a participating State half of the State’s eligible reserve fund contributions within 30 calendar days after the State files the required report. The Fund will keep reimbursing States as it gets reports, until the Fund’s money is gone. The Fund will not pay any reimbursement for a loan if the borrower had 500 or more employees when the loan was enrolled. Over any 3-year period, reimbursements tied to loans for the same borrower or any group treated as a common enterprise cannot exceed $75,000. “Common enterprise” means what part 32 of title 12 of the Code of Federal Regulations (or its successor) defines. For loans where the lender’s total covered loans so far do not exceed $2,000,000, the State’s reimbursement for that loan cannot be more than the smaller of (a) 75% of the total premium charges paid by the borrower and the lender, or (b) 5.25% of the loan’s covered amount. If the lender’s prior covered loans total $2,000,000 or more, the limit is the smaller of (a) 50% of those premium charges, or (b) 3.5% of the covered amount. If a loan causes the lender’s total covered amount to cross $2,000,000, apply the first rule to the part that brings the total to $2,000,000 and the second rule to the rest.