(1) The repayment period of a loan may be agreed upon by the borrower and the department, but may not exceed the period set forth in Title 75, chapter 25, part 1, MCA.

(2) A borrower shall use the money obtained from a loan made under the Act and these rules only for the purposes described in the loan application. A borrower shall implement a loan project within the time specified in the loan documents unless the department grants a written extension.

(3) The department may not issue a loan unless the applicant financially qualifies as credit-worthy based on the evaluation in ARM 17.85.111(3) .

(4) The department shall set the loan interest rate annually in January after evaluating:

(a) current commercial interest rates for similar loans;

(b) administrative costs of the program, including processing and evaluation costs;

(c) loan delinquency and default rates;

(d) the legislature's requirements for a low interest rate and that the rate be at least 1%; and

(e) any other factor the department determines appropriate.