FAAST
New Horizon Loan Program Administrative
Policies and Procedures Manual
Adopted by the FAAST Board of Directors
June 24, 2011
New Horizon Loan Program Administrative
Policies and Procedures Manual
TABLE OF CONTENTS
Definitions……………………………………………………………….…….….…1
Purpose of the New Horizon Loan Program ……………………….……..…..3
Federal/state authority………………………………………………….…..……..4
29 U.S.C. §3003 (e)(2)(A) – state financing activities …………………..….…...4
New Horizon Loan Board Committee…………………………………..….……5
FAAST New Horizon Loan Program Administrative
Policies and Procedures ……………………………………………….….……..5
FAAST New Horizon Loan Program Loan Guarantees ………….…….……6
Administrative Fees …………………………………………..…....…….……..7
AFP………………………………………………………………….……….….7
Telework ……………………………………………………………..…………7
Protection against loan defaults when the FAAST
New Horizon Loan Program guarantees a loan………………………….……….8
Information and Referrals ………………………………………………………9
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FAAST New Horizon Loan Program Guaranteed
Loan Criteria ……………………………………………………………………..….9
FAAST New Horizon Loan Program guaranteed
loans rejected to be underwritten by a participating
FAAST financial institution ……………………………………………….……...9
Credit Criteria Guidelines ……………………………………………………....10
Guaranteed Loans Application Process…………………………………..….....……11
Loans Rejected to be Underwritten by the Financial Partner
Referred to the FAAST New Horizon Loan Program………………………..11
Other Procedures ……………………………………………………….……..12
Restructured FAAST New Horizon Loan Program guaranteed
loans in agreement with the financial partner……………………………….….…...12
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Limited rescue payments for FAAST New Horizon Loan
Program guaranteed loans ……………………………………………..……...12
Collection Policies…………………………………………………………………13
Internal review ……………………………………………………………………..13
Grievances ………………………………………………………………………….14
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New Horizon Loan Program Administrative
Policies and Procedures Manual
Definitions
Assistive technology means technology designed to be utilized in an assistive technology
device or assistive technology service.
Assistive technology device means any item, piece of equipment, or product system, whether
acquired commercially, modified, or customized, that is used to increase, maintain, or improve
functional capabilities of individuals with disabilities.
Assistive technology service means “any service that directly assists an individual with a
disability in the selection, acquisition, or use of an assistive technology device. Such term
includes—
(A) the evaluation of the assistive technology needs of an individual with a disability,
including a functional evaluation of the impact of the provision of appropriate assistive
technology and appropriate services to the individual in the customary environment of the
individual;
(B) a service consisting of purchasing, leasing, or otherwise providing for the acquisition
of assistive technology devices by individuals with disabilities;
(C) a service consisting of selecting, designing, fitting, customizing, adapting, applying,
maintaining, repairing, replacing, or donating assistive technology devices;
(D) coordination and use of necessary therapies, interventions, or services with assistive
technology devices, such as therapies, interventions, or services associated with education and
rehabilitation plans and programs;
(E) training or technical assistance for an individual with a disability or, where
appropriate, the family members, guardians, advocates, or authorized representatives of such
an individual;
(F) training or technical assistance for professionals (including individuals providing
education and rehabilitation services and entities that manufacture or sell assistive technology
devices), employers, providers of employment and training services, or other individuals who
provide services to, employ, or are otherwise substantially involved in the major life functions of
individuals with disabilities; and
(G) a service consisting of expanding the availability of access to technology, including
electronic and information technology, to individuals with disabilities.” Assistive Technology Act
of 2004, Section 3, (5)
Beacon credit score: BEACON 5.0, developed by Equifax and Fair Isaac, is a risk
assessment model that forecasts the future risk of a consumer's accounts going severely
delinquent within 24 months. It analyzes the information contained within the credit report and
assigns a score based upon risk level. Each time a BEACON score is requested, BEACON will
provide an accurate assessment of that report at that point in time. BEACON will only be
delivered with a full credit report.
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A credit worthy individual is one who either has a good credit history with no adverse credit
problems and/or an individual who is actively addressing his or her credit problems. A credit
worthy individual may also be one whose credit problems were related to excessive disability
related expenses. If creditworthiness is questionable, the consumer will be asked to provide
additional information. the consumer will be required to provide proof that they have timely rent
or mortgage payments for the past 12 months.
A co-signer is a cosignatory; a joint signer of a negotiable instrument, especially a promissory
note.
Debt to income ratio is a simple but useful measure of a household's finances. The ratio is
important for individuals to know because a high debt to income ratio can indicate future
financial problems. This ratio is also important from the perspective of lenders who avoid
loaning to people who have a high debt to income ratio. To calculate the debt to income ratio a
person first looks at the total amount of income coming in each month. Part-time jobs and
spousal income should be included if you are measuring a household debt to income ratio.
Next, the sum total of bills paid per month on debts that cannot be paid off within six months
should be calculated. The ratio of these two numbers give the debt to income ratio, which
indicates much money is left over for savings, upcoming expenses, and new financial
obligations. The current acceptable debt to income ratio is 50% or lower.
Delinquent account is a loan that is guaranteed by FAAST that has not been paid as agreed
and is at least 30 days past due.
Disability means “a condition of an individual that is considered to be a disability or handicap
for the purposes of any Federal law other than this Act or for the purposes of the law of the
State in which the individual resides.” Assistive Technology Act of 2004, Section 3, (9)
Favorable negotiated rate is an agreed upon interest rate that has been negotiated with the
participating financial institution in accordance with the contract.
Income includes but is not limited to all wages, salary, commissions, interest, pensions and
other sources of financial support, paid or in kind including Supplemental Security Income (SSI),
Social Security Disability Income (SSDI) and retirement benefits.
Individualized Based Analysis is the process through which an individual’s eligibility for
FAAST and the FAAST New Horizon Loan Program is determined using credit score, debt to
income ratio and other qualifying factors.
Individual with a disability; individuals with disabilities.—
“(A) Individual with a disability.--The term `individual with a disability' means any
individual of any age, race, or ethnicity—
(i) who has a disability; and
(ii) who is or would be enabled by an assistive technology device or an assistive
technology service to minimize deterioration in functioning, to maintain a level of functioning, or
to achieve a greater level of functioning in any major life activity.
(B) Individuals with disabilities.--The term `individuals with disabilities' means more
than 1 individual with a disability.” Assistive Technology Act of 2004, Section 3, (10)
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A participating bank is a financial institution that has a contractual relationship with FAAST for
the purposes of the FAAST New Horizon Loan Program.
Participating financial institution is a lending institution that has agreed to work with FAAST
to meet the needs of our consumers by providing non-guaranteed loans and guaranteed loans
to qualified individuals. FAAST may work with numerous institutions simultaneously.
A qualified applicant/borrower must be a U.S. citizen and Florida resident who has a disability
or who has a family member with a disability, in accordance with federal/state disability civil
rights laws. The qualified applicant/borrower must clearly demonstrate that they qualify for a
loan and have the ability to repay a loan and that the loan will be used in furtherance of the
FAAST NHL Program and applicable federal/state requirements.
A resident is a person domiciled within the State of Florida at the time of application.
Residency will be established with a Florida Driver License or a Florida Identification Card.
Purpose of the New Horizon Loan Program
The Florida Alliance for Assistive Services and Technology, Inc. (FAAST), which administers
the FAAST New Horizon Loan Program (FAAST NHL Program), is a 501(c)(3) not-for-profit
corporation. FAAST, Inc. became a not-for-profit as of October 20, 1994 under §413.407,
Florida Statutes, and was originally authorized under the Technology-Related Assistance for
Individuals with Disabilities Act of 1988; reauthorized in 1998 under Public Law 108-364; now as
the Assistive Technology Act of 2004 (29 U.S.C. §3001 et seq.).
FAAST, Inc.’s mission is to improve the quality of life for all Floridians with disabilities through
advocacy and awareness activities that increase access to and acquisition of assistive services
and technology. FAAST, Inc. does not encourage individuals to incur debt and intends that
loans underwritten, either through the financial institution contract or guaranteed through the
FAAST NHL Program, be available for those who have no other alternative or alternate financial
resource or similar benefit.
The FAAST Board of Directors/Assistive Technology Advisory Council is responsible for
ensuring consumer involvement in the creation, application, and distribution of technologyrelated assistance to and for persons who have disabilities. The FAAST Board of Directors’
responsibilities include but are not limited to statewide policy development, both state and
federal legislative initiatives, advocacy at both the state and federal level, planning of statewide
resource allocations, policy-level management, reviews of both consumer responsiveness and
the adequacy of program service delivery.
The FAAST Board of Directors is appointed by the Commissioner of Education and required to
have 51% membership consisting of individuals who have disabilities and who are assistive
technology consumers or family members or guardians of those individuals pursuant to
§413.407, Florida Statutes. The FAAST Board also consists of:
1. Representatives of consumer organizations concerned with assistive technology.
2. Representatives of business and industry, including the insurance industry, concerned
with assistive technology.
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3. A representative of the Division of Vocational Rehabilitation.
4. A representative of the Division of Blind Services.
5. A representative of the Florida Independent Living Council.
6. A representative of Workforce Florida, Inc.
7. A representative of the Department of Education.
8. Representatives of other state agencies that provide or coordinate services for persons
with disabilities.
For more information on FAAST, Inc. programs and services, go to: www.faast.org.
Federal/state authority
FAAST, Inc. administering the Alternative Finance and Telework Programs (a.k.a. the FAAST
New Horizon Loan Program) authorized under the Assistive Technology Act of 2004, Section 4
(e)(2)(A); 29 U.S.C. §3003 (e)(2)(A) – state financing activities; and further authorized through
the U.S. Department of Education, Rehabilitation Services Administration (RSA) and under the
authority of the Florida Department of Education, Division of Vocational Rehabilitation.
29 U.S.C. §3003 (e)(2)(A) – state financing activities
The State shall support State financing activities to increase access
to, and funding for, assistive technology devices and assistive
technology services (which shall not include direct payment for such a
device or service for an individual with a disability but may include
support and administration of a program to provide such payment),
including development of systems to provide and pay for such
devices and services, for targeted individuals and entities described in
section 3(16)(A), including-(i) support for the development of systems for the purchase,
lease, or other acquisition of, or payment for, assistive technology
devices and assistive technology services; or
(ii) support for the development of State- financed or privately
financed alternative financing systems of subsidies (which may
include conducting an initial 1-year feasibility study of, improving,
administering, operating, providing capital for, or collaborating with an
entity with respect to, such a system) for the provision of assistive
technology devices, such as-(I)
a low-interest loan fund;
(II)
an interest buy-down program;
(III)
a revolving loan fund;
(IV)
a loan guarantee or insurance program;
(V)
a program providing for the purchase, lease, or
other acquisition of assistive technology devices
or assistive technology services; or
(VI)
another mechanism that is approved by the
Secretary.
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New Horizon Loan Board Committee
The FAAST New Horizon Loan Board Committee is made up of those members of the FAAST
Board of Directors who agree on an annual basis to serve as Committee members for the
FAAST NHL Program. The function of the New Horizon Loan Board Committee of the FAAST
Board of Directors is to oversee and review the activities of the FAAST NHL Program in
accordance with federal/state requirements, conditions of the contract with financial institutions,
guidelines within these policies and procedures, as well as compliance with the Florida
Department of Financial Services’ Reference Guide for State Expenditures, as applicable.
The Committee will review and report on financial and program activities of the FAAST NHL
Program and make recommendations to improve policies and procedures. The FAAST
Executive Director, the FAAST staff Accountant and New Horizon Loan Board Committee will
receive detailed oral and written quarterly reports in accordance with annual federal/state
reporting requirements and otherwise receive oral and written reports to review activities
regarding all loan applications, approved and denied loans, withdrawn loan applications, all loan
defaults, or loan modifications of any type. This includes but is not limited to backup
documentation such as financial reports submitted monthly, quarterly and annually by the
participating financial institution redacted for Board and Board Committees as applicable.
The Committee will, in accordance with this manual, review grievances for denial of a New
Horizon Loan Program guaranteed loan application or denial to restructure a New Horizon Loan
Program guaranteed loan. Any policy or procedure recommendations by the FAAST New
Horizon Loan Board Committee are subject to review by applicable Committees of the Board of
Directors such as the Finance and Personnel Committees of the Board of Directors and are
subject to the Board of Directors’ ratification.
FAAST New Horizon Loan Program Administrative Policies and Procedures
The FAAST NHL Program has developed loan programs to address the needs of loan
applicants and borrowers, to meet our fiduciary responsibilities, and to follow applicable
federal/state laws and regulations. The FAAST NHL Program does not approve guaranteed
loans for the purpose of refinancing an existing loan.
All administrative costs related to the expenses, maintenance and administration of the FAAST
NHL Program shall be assessed by the FAAST staff Accountant quarterly from FAAST NHL
Program funds and shall be reviewed by the Executive Director prior to being deposited into a
FAAST administrative account. These funds shall be reviewed by an independent CPA and
FAAST auditors.
FAAST may approve loan applications within amounts ranging from $500 to $30,000 with a
favorable negotiated rate through a participating financial institution that has agreed to make
loans to individuals and business in accordance with the terms and conditions that have been
mutually agreed upon by the FAAST NHL Program and the participating financial institution.
This includes a financial institution that has agreed to make loans to qualifying individuals and
businesses by signing a contract with terms and conditions that are mutually agreed upon by
officials administering the FAAST NHL Program and the participating financial institution subject
to legal review.
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Loans are offered to loan applicants in accordance with a financial partnership contract. Loan
applications may be referred to the participating financial partner using the financial partner’s
credit standards. Only after loan applications have been considered and processed for a loan
underwritten first through a participating financial institution, and only then if they are not
underwritten by a participating financial institution under the bank’s criteria for a loan,
applications may then be referred to the FAAST NHL Program for detailed scrutiny through an
individualized based analysis subject to criteria within these established policies and procedures
inclusive of the reasons the financial partner rejected to underwrite a loan. After ensuring that
applicants clearly qualify and meet specific criteria they may then be considered for a loan
guarantee through the FAAST NHL Program.
This administrative policy manual is designed to provide guidance. It is to be reviewed and
approved bi-annually by the FAAST New Horizon Loan Board Committee, all applicable
Committees of the FAAST Board of Directors and the full Board of Directors. The FAAST
Board of Directors are to approve all FAAST NHL Program policies and procedures
(administrative and fiscal) vetted through applicable Committees of the FAAST Board of
Directors and to provide guidance to ensure consistency with applicable federal/state law and
regulations, the contract with a financial partner inclusive of Florida banking laws and
regulations, as well as compliance with the Florida Department of Financial Services’ Reference
Guide for State Expenditures, as applicable. The FAAST NHL Program policies and procedures
will also be consistent with FAAST, Inc.’s mission, FAAST policies and procedures and bylaws
of the corporation.
This manual provides guidance and procedures to FAAST staff responsible for implementing
the FAAST NHL Program. The Executive Director and FAAST NHL Program Manager shall
maintain and distribute this manual to the public, applicants and borrowers, FAAST staff, and
the FAAST Board of Directors.
The work of the FAAST NHL Program is to promote alternative funding resources for Floridians
with disabilities to acquire assistive technology that can enhance their independence and
improve their quality of life. The FAAST NHL Program shall be administered and managed by
the FAAST NHL Program Manager, Executive Director, FAAST staff Accountant, and any other
designated staff of FAAST, Inc.
A key feature of the FAAST NHL Program is to work in partnership with a participating financial
institution to provide loans with the lowest negotiated interest rate and upon more favorable or
flexible terms and conditions.
FAAST New Horizon Loan Program Loan Guarantees
After loans have been considered by a financial institution in accordance with the contract and if
they are not underwritten by a participating financial institution, they may only then be referred
back to the FAAST NHL Program.
By virtue of a referral from the financial partner to the FAAST NHL Program, applicants for a
FAAST NHL Program guaranteed loan are to be considered loans with higher risk and all
applicants for a FAAST NHL Program guaranteed loan should be encouraged to secure a co6
signer to help minimize the FAAST NHL Program’s liability and to improve the applicants’
opportunity to qualify for a FAAST NHL Program guaranteed loan.
Applicants for FAAST guaranteed loans will be scrutinized under criteria including, but not
limited to, payment history, total outstanding debt, highest balance, any liens or attachments of
any type that may have been filed against an applicant, bankruptcies, foreclosures, late
payments, established debt to income criteria, credit checks, documented Beacon score and all
other applicable standards for assessing risk and within conditions of the contract with a
financial institution. Credit scores should be generated based on the above information to
assist in the decision making process.
Administrative Fees
Assessed fees and charges in accordance with the financial institution contract and/or related to
FAAST NHL Program loan guarantees may be attributed to the processing of loan applications,
credit checks, loan guarantees, closing costs, loan restructuring, late fees, and administrative
and insurance costs.
AFP
Examples of assistive technologies for FAAST NHL Program loans for the provision of assistive
technology devices include, but are not limited to:

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Assistive technology device such as any item, piece of equipment, or product system,
whether acquired commercially, modified, or customized, that is used to increase,
maintain, or improve functional capabilities of individuals with disabilities.
Computer hardware and software and related adaptive equipment.
Durable medical equipment.
Telecommunication and augmentative communication devices.
Home and vehicle modifications and devices; environmental controls; sensory aids and
devices.
Mobility devices, orthotics, and prosthetics.
Should the demand for loans exceed available projected resources, the FAAST NHL Program
shall develop objective criteria for an order of selection subject to approval by the New Horizon
Loan Board Committee, other applicable Committees of the Board and ratified by the FAAST
Board of Directors.
Telework
Telework/small business loans are intended to provide assistive technology and related
services to remove an existing barrier to employment, independent living, related education
program, or other activity of daily living related to employment such as an accommodation, lack
of transportation, attendant care, or disability related situation causing barriers to employment.
These equipment loans should complement the proposed work that may overcome these
existing barriers. Businesses may also borrow Telework/small business funds, which will lead
to a telework employment outcome for one or more Floridians with a disability as long as the
individual or responsible party retains title to the equipment. Telework/small business loans
must be likely to increase income through telework, or prevent income loss from losing a job or
business.
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Telework loans include a self-employment enterprise to achieve an employment outcome in
which the individual owns his or her own business. The individual must be able to present a
detailed business plan approved through a qualified entity such as the Service Core of Retired
Executives (SCORE), a job development center, community college, program, university or
other qualified or accredited entity.
Telework, often referred to as telecommuting, are interchangeable terms for an employment
outcome in which the individual conducts business activities that would otherwise be completed
at an office or workplace. Telework is employment in which the individual uses their home as an
office or “home base”, but for whom much of the workday is completed at remote locations.
Contractors, traveling salespersons, and individuals who are self-employed may qualify. For
purposes of this program, it is assumed that a person with a disability will become employed or
self employed as a result of the loan. However, persons who are currently employed, but must
work from their home as a result of the limitations of their disability may also be eligible as a
telecommuter.
Telework equipment is any mechanical or electronic device or hardware apparatus, software or
telecommunication system necessary to perform telework, as well as installation cost and/or
training needed to use the equipment properly, maintenance agreements and extended
warranties for the equipment, and maintenance and repair expenses for the equipment.
Telework equipment does not include the reoccurring fees associated with the ongoing use of
the equipment. Examples of equipment for the provision of assistive technology devices include but
are not limited to office furniture, home modifications for office accessibility, supplies or
inventory related to operating equipment.
Protection against loan defaults when the FAAST New Horizon Loan Program guarantees
a loan
All loans approved/guaranteed by the FAAST NHL Program shall clearly demonstrate a form of
collateral for protection against loan default. The FAAST NHL Program Manager shall evaluate
loan criteria to calculate a coverage ratio to determine the value of the loan applicant’s
collateral. A personal guarantee is often requested on the loan if the guaranteed borrower is
unable to fulfill their repayment obligations. FAAST NHL Program loans must be secured by
collateral, which is property in which a security interest is granted to secure repayment of the
loan. The loan collateral may include business assets, stocks, bonds, certificates of deposits,
or personal assets. Consider (1) the value of the loan collateral must be greater than the
amount of the loan, (2) expected economic life of collateral will be considered in evaluating the
collateral offered for the loan, (3) formal collateral appraisals may be required, and (4) a pledge
of personal assets may be required as additional collateral for the loan requested. In addition,
collateral such as marketable securities, financial investments, automobiles, homes, land,
commercial and residential property and other valuable collateral shall be considered when
making a loan determination. If personal assets are in joint names, a sole proprietorship,
and/or partnership, all parties will be required to pledge collateral.
The applicant must meet all eligibility criteria before the release of money is deemed
appropriate. Thus, an applicant for a loan must meet the criteria of being a qualified borrower
and must be purchasing assistive technology or meet other authorized purposes of the FAAST
NHL Program.
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Information and Referrals
FAAST, Inc. does not encourage individuals to incur debt and intends that loans underwritten,
either through the financial institution contract or guaranteed through the FAAST NHL Program
be available for those who have no other alternative or alternate financial resource or similar
benefit available.
To this end, information and referral is a customer service offered by the FAAST NHL Program,
which may include but is not limited to comprehensive referrals for financial information,
education and counseling; referral to similar benefits and alternative funding resources; as well
as to FAAST programs and services.
FAAST New Horizon Loan Program Guaranteed Loan Criteria
FAAST New Horizon Loan Program guaranteed loans rejected to be underwritten by a
participating FAAST financial institution
Only after loan applications have been considered and processed for a loan underwritten first
through a participating financial institution, and only then if they are not underwritten by a
participating financial institution under the bank’s criteria for a loan, applications may then be
referred to the FAAST NHL Program for detailed scrutiny through an individualized based
analysis subject to criteria within these established policies and procedures inclusive of the
reasons the financial partner rejected to underwrite a loan.
The FAAST NHL Program Manager must ensure that applicants clearly qualify and meet
specific criteria within these policies and procedures before they will then be considered for
guarantee through the FAAST NHL Program.
FAAST NHL Program funds shall be offered only when loan applicants clearly qualify using
objective criteria including but not limited to established debt to income criteria, credit checks,
documented Beacon score and other applicable banking standards.
The ability to repay the loan is determined when an individual's debt to income ratio (assessing
income and all expenses) meets the standards set by a participating financial partner or when a
business’s cash flow and credit standards meet the criteria set by a participating financial
partner.
The FAAST NHL Program maintains restricted federal funds consisting of such monies as
originally appropriated through the U.S. Department of Education and any additional restricted
federal funds provided for the sole purpose of providing loans. The FAAST NHL Program may
also accept and receive bequests, endowments or grants specific to the purpose of providing
loans, as well as income from loan fund investments and recouped costs.
Income is assessed and may include but is not limited to all wages, salary, commissions,
interest, pensions, annuities and dividends, and other sources of financial support, paid or inkind including but not limited to retirement benefits, Social Security retirement benefits,
Supplemental Security Income (SSI), Social Security Disability Income (SSDI), and as
applicable structured settlements, trusts, inheritance, subrogations, or other taxable or nontaxable income.
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An individual with a disability is an individual who qualifies under federal/state disability civil
rights laws and guidance can be found within the Americans with Disabilities Act (ADA) and
Section 504 of the Rehabilitation Act of 1973, as amended and may include an individual who
has limitations to major life functions, such as walking, talking, seeing, hearing, taking care of
oneself, learning, becoming employed or maintaining employment.
Credit Criteria Guidelines
Credit score:
 A credit score of 619 or greater will be considered. If the application is a joint request,
the higher credit bureau score may be considered.
Credit history:
Credit history guidelines are as follows:
 Derogatory credit history (R3/I3 and greater) is generally unacceptable.
 Public records of bankruptcies, foreclosures, unpaid collections and judgments within the
last 5 years are unacceptable. The applicant’s credit file must reflect good credit within
the last year indicating they have the ability/willingness to meet their credit obligations.
Applicants who withhold derogatory credit information will be rejected.
 Additional documentation may be requested to document that the applicant(s) has paid
outstanding balances on delinquent loans, unpaid collections/judgments or defaulted
loans.
 Additional credit history documentation may be requested.
 Loans will not be made to applicants that have previously defaulted on loans including
the FAAST NHL Program.
Debt to Income Ratio:
 A 50% debt to income ratio may be considered if the applicant can adequately verify
sufficient cash flow or sufficient assets to repay the loan.
An individual’s or business owner(s)’ income includes all wages, salary, commissions, interest,
pensions, annuities and dividends, and other sources of financial support, paid or in-kind
including but not limited to retirement benefits, Social Security retirement benefits,
Supplemental Security Income (SSI), Social Security Disability Income (SSDI), and as
applicable structured settlements, trusts, inheritance, subrogations, or other taxable or nontaxable income.
The FAAST NHL Program is an equal opportunity program. The credit criteria will be applied
equitably and fairly to all qualified applicants and borrowers without regard to race, gender,
sexual orientation, national origin, color, marital status, religion, age, or disability. All qualified
applicants and borrowers must be legally able to enter into a binding contract with a lending
institution.
The FAAST NHL Program complies with the Health Insurance Portability and Accountability Act
(HIPAA) and will not disclose information regarding current and former applicants and
borrowers unless otherwise required by federal/state law.
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Guaranteed Loans Application Process
Applicants will receive application packets from the FAAST NHL Program Manager or
designated FAAST staff or they can download loan applications from the New Horizon Loan
Program section of the FAAST website. Application packets will include a FAAST NHL
Program loan application, an instruction sheet and other pertinent materials as applicable.
The FAAST NHL Program Manager will require proof of eligibility reserving the right to ask for
additional justification for the device requested, which may include a letter from a physician or
other appropriate licensed professional, evaluation reports, or vendor quotes. Applications may
require verification of all income sources and that the requested purchase of technology is, in
fact, assistive in nature.
If approved by the financial institution, the financial partner may then choose to refer the
applicant to a branch of their choosing in order to close the loan. The participating financial
institution will notify officials with the FAAST NHL Program on whether or not they will
underwrite a loan. Should the financial institution approve or reject a loan application the
applicant and FAAST NHL Program will be advised in writing.
Loans Rejected by the Financial Partner Referred to the FAAST New Horizon
Loan Program
Applicants denied by the financial institution will be referred back to the FAAST NHL Program
for consideration of a guaranteed loan. Regarding accounts with outstanding balances,
payments will be calculated based on minimum payment due including but not limited to a
current Beacon credit report. When calculating the debt to income ratio, all current liabilities
with regular monthly payments (as indicated by the credit bureau report, the credit
application/financial statement and other applicable reports) will be calculated as part of the
debt to income ratio. Each request for credit will be supported by a current credit bureau report
to assist the FAAST NHL Program Manager in assessing both the willingness and ability to
repay.
All loans guaranteed by the FAAST NHL Program shall clearly demonstrate a form of collateral
and/or a co-singer for protection against loan default in accordance with the contract. A
condition of loans guaranteed by the FAAST NHL Program will require that the borrower agree
whenever possible to have payments debited through the Automated Clearing House (ACH)
processed from their account. This agreement will be documented as part of the closing of a
loan guaranteed by the FAAST NHL Program.
The applicant must meet all eligibility criteria before the release of money is deemed
appropriate. Thus, an applicant for a loan must meet the criteria of being a qualified borrower
and must be purchasing assistive technology or meet authorized purposes of the FAAST NHL
Program.
FAAST NHL Program approved and guaranteed applications will be recorded on both the
financial partner and FAAST NHL Program systems. Fees and other remittances will be paid to
the financial partner by the FAAST NHL Program for FAAST NHL Program approved
guaranteed loans.
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The FAAST NHL Program will retain all records pertinent to loan applications and loans in
accordance with applicable state laws and regulations and FAAST’s record retention policies
and procedures.
Other Procedures
Approved FAAST NHL Program guaranteed loans require the financial institution to issue the
check directly to the vendor unless otherwise approved.
Approved FAAST NHL Program guaranteed loans must be closed in compliance with FAAST’s
contract negotiated with the financial institution. Applicants who have not closed their loan
within the specified timeframe will be required to re-apply.
Restructured FAAST New Horizon Loan Program guaranteed loans in agreement with the
financial partner
The FAAST financial partner may restructure a FAAST NHL Program guaranteed loan only
upon the agreement of the FAAST NHL Program Manager and FAAST Executive Director.
Limited rescue payments for FAAST NHL Program guaranteed loans must also be agreed upon
by the FAAST NHL Program Manager and FAAST Executive Director.
Restructured loans for borrowers may only be considered due to a change in circumstances.
The FAAST NHL Program Manager may consider a restructured FAAST NHL Program loan.
Borrowers benefiting from restructured loans from the FAAST NHL Program must show that
they will be able to maintain their restructured payments with FAAST’s financial partner.
Restructured loans shall never be offered to borrowers who will be overextended and unable to
make payments. Borrowers may apply for a restructured loan once during the life of the loan
with the understanding that no loans may be restructured for more than 12 additional months
and/or in accordance with the contract with the financial institution. The annual percentage rate
will remain unchanged. In all cases, detailed scrutiny and a thorough evaluation with backup
documentation/verification of the borrower’s ability to pay off a restructured loan including the
borrower’s loan payment history and reasons for the change of financial circumstances should
be considered. Restructured loans cannot be considered unless officials with FAAST, in
coordination with the financial partner, have pursued all viable options including procedures
listed in this section.
Limited rescue payments for FAAST New Horizon Loan Program guaranteed loans
Limited rescue payments for borrowers may only be considered due to a change in
circumstances. The process for the FAAST NHL Program Manager to consider limited rescue
payments for a FAAST NHL Program guaranteed loan will be under specific criteria. Rescue
payments are to bring the loan current and those rescue payments must be added on the
backend of the loan extending the term of the loan to correspond with the number of rescue
payments debited from AFP or Telework accounts located in the bank of the financial partner
handling the guaranteed FAAST NHL Program loan. Borrowers benefiting from rescue
payments from the FAAST NHL Program must be able to verify that they will be able to
maintain their payments with FAAST’s financial partner once the loan has been renegotiated to
include rescue payments on the backend of the loan. Rescue payments should never be
offered for borrowers who are generally overextended and unable to make payments, or who
will be past due again the following month or immediately in the future. In all cases, detailed
scrutiny and a thorough evaluation with backup documentation/verification of the borrower’s
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ability to pay including borrower’s loan payment history and reasons for the change of financial
circumstances should be considered.
Qualified borrowers applying for limited rescue payment consideration must have notified in
advance a potential default to the financial partner and officials with the FAAST NHL Program.
This notification shall include the specifics of a change in financial circumstances causing the
request for a limited rescue payment. No more than one rescue payment approval for no more
than one to three months may be made during the life of the loan.
Collection Policies
The FAAST NHL Program Manager shall ensure that all reasonable steps are taken to recoup
any funds when a guaranteed loan is in default. All means of recouping funds shall be
considered including seeking repayment by collection agencies. FAAST NHL Program officials
shall consider the pursuit of any and all state or federal legal remedies regarding debt defaults.
All defaults shall be reported to all the major credit bureaus.
Internal review
In order to ensure timeliness of the information submitted to the financial partner for consideration
for a loan, all loan applications shall be submitted within ten (10) business days from the date the
completed application is received.
If the FAAST NHL Program Manager, FAAST staff Accountant and Executive Director determine
that the applicant qualifies as a FAAST NHL Program guaranteed borrower, the FAAST NHL
Program Manager shall notify the participating financial partner within thirty (30) calendar days
after the receipt of the participating financial partner’s initial credit decision denying the loan.
The FAAST NHL Program Manager will process a loan application with a written
recommendation approving or denying the loan application in accordance with these policies
and procedures as well as recommend with a written justification for approval or denial the
restructuring of a FAAST NHL Program guaranteed loan.
The FAAST NHL Program Manager will discuss with the FAAST staff Accountant and FAAST
Executive Director the justification for approving an application and will forward pertinent
documents to the FAAST staff Accountant and FAAST Executive Director for their
consideration. Based on the information provided, the Executive Director will approve or deny
the application. The FAAST staff Accountant and Executive Director will have fifteen (15)
business days to review FAAST NHL Program loan guarantees or loan restructuring.
The FAAST staff Accountant will track all financial activity related to the FAAST NHL Program
through the MIP accounting system following all procedures within the Accounting Policies and
Procedures Manual. The FAAST staff Accountant will also prepare financial reports quarterly
for the Executive Director, the FAAST NHL Program Manager and for the New Horizon Loan
and Finance Committees of the FAAST Board of Directors.
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The FAAST NHL Program Manager shall track all individual FAAST NHL Program loan
activities through the use of a performance measure and satisfaction survey instrument in
accordance with federal reporting requirements.
Grievances
The FAAST New Horizon Loan Program will maintain and provide a grievance policy and
procedure upon request explaining the details of the grievance policy and procedure process.
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