§4747 Reimbursement by Fund

Summary

The Fund must pay a participating State within 30 calendar days after it gets the required report. It will pay 50 percent of the State’s contributions to the reserve funds that are eligible for reimbursement. The Fund will keep paying as it gets reports until its money is gone. The Fund will not pay for a loan if the borrower has 500 or more employees when the loan is enrolled. The Fund also limits payments to $75,000 for any single borrower or group with a “common enterprise” during any three-year period (common enterprise has the same meaning used in the federal rules called part 32). For loans where the total covered amount of all enrolled loans is under $2,000,000, the Fund’s reimbursement to the State is the smaller of 75 percent of the premium charges paid by borrower and bank, or 5.25 percent of the loan’s covered amount. Once the enrolled loans for an institution reach $2,000,000 or more, the Fund’s reimbursement is the smaller of 50 percent of those premium charges, or 3.5 percent of the covered amount. If a single loan makes the total cross $2,000,000, the Fund applies the first rule to the portion up to $2,000,000 and the second rule to the rest.