The PECFA Claims Review Section (Claims) would like to remind claimants to submit complete loan documentation when filing claims. Sites that utilize a PECFA loan are reimbursed for PECFA eligible interest accrued on the loan. The current rate PECFA can reimburse for interest, by law, is at prime minus one percent for those businesses that have less than $25 million dollars in gross revenues in the year prior to claim submittal. Those businesses exceeding $25 million dollars are subject to a four percent interest reimbursement rate. If the loan interest rate exceeds the rate PECFA can reimburse, a recalculation must be completed to obtain an eligible interest figure. However, due to the difficulty in recalculation, Commerce has allowed claims that include non-eligible interest to be submitted and relies on Claims to compute the interest down to the eligible rate. In order do this accurately, the following must be included with each claim:

1. Copies of all notes, including renewals or extensions, for the time period in which interest is being claimed.
2. A complete loan history for the time period for which interest is being claimed, that shows all draws, interest and fees whether compounded into the loan, accrued, or paid out of pocket by the owner.

Providing the above documentation will allow Commerce to reimburse in a timelier manner. A letter from the bank showing the interest claimed with no other supporting documentation will not be accepted.

-- Berni Mattsson

The newsletter is issued electronically every other month.

Please send comments or questions to Barbro McGinn, editor.