Webinar: Updates on Maine’s Adaptive Equipment Loan …



Webinar: Updates on Maine’s Adaptive Equipment Loan Program Date: July 9, 2020Time: 1:00 – 2:00 pmUpdates have been made to Maine's Kim Wallace Adaptive Equipment Loan Program (AELP), the state’s low interest financing program for people with disabilities to give them more options for purchasing Assistive Technology (AT). AELP funds can be used to buy AT devices, adaptive equipment or to make home modifications. The program is now offering loans for non-adapted vehicles for Mainers with a disability who need transportation to return to work. Loans are also available to Maine business owners for the purchase, construction, or installation of adaptive equipment and AT to make their location more accessible for employees and customers. In the presentation we will discuss the loan application process and showcase some recent consumers and how they used their loan funds. Participants will have plenty of opportunity to ask questions about the AELP process.PresenterHenry Powell, OTR/L is an Independent Living Specialist at Alpha One, and Administrative Director for the Adaptive Equipment Loan Program. As an Independent Living Specialist, Henry assists people with disabilities to live independently in their homes and communities. For three years, Henry has managed the Adaptive Equipment Loan Program working with applicants to get loans to buy equipment and technology.Kim Wallace Adaptive Equipment Loan Program (AELP)“provides Maine citizens with a disability with affordable loans for ‘adaptive equipment’ to improve access, achieve independence, productivity, life enrichment and/or community participation.”One of the greatest barriers for Mainers with disabilities was the inability to purchase necessary equipment to be safe and independent in their homes. From a collaboration of leaders in the disability community came a program to provide financial loans for individuals with disabilities to allow them to purchase this equipment and be more independent.AELP Program HistoryMr. Kim Wallace and the Blue-Ribbon CommissionLoan program created by Maine Law in 1988 - First in the country!25 years of financing successMore than 2,500 loans made since inceptionKim had an injury in 1979 and became a wheelchair user. He was a regional manager for Alpha One and a vocal advocate in the disability community and worked with state leaders to push for equal rights and access.During his career, he found that technology and equipment were a big missing link for individuals with disabilities. He worked Steve Tremblay at Alpha One and Stan Provost with the Finance Authority of Maine to discuss setting up a fund to help purchase this equipment and technology at the state level.They worked with the governor to put the initiative on the ballot in 1988 to allocate $5 million for this program. In the 90s it was replenished with an additional $1.5 million. Over $30 million has been lent This program was the first of its kind and sparked many other programs around the country (over 40!!) to help with financing of adaptive equipment and assistive technologyStatisticsPeople with disabilities are almost two times as likely to use costly non-bank lendingPeople with disabilities are more likely to:Be late on mortgage payments (31% versus 14%)Overdraw on checking accounts (31% versus 18%)Take loans from retirement accounts (23% versus 10%)Adding to all of this, the price of adaptive equipment is overwhelmingly high. An adapted vehicle can cost three times that of a traditional vehicle and frequently very specific equipment and technology is not covered by insurance.As such, the credit histories of individuals with disabilities can suffer and it makes it even harder to come out from all of that debt. As a center for independent living, we also work with applicants to discus other sources of funding (such as grants or other lower-cost loans) for the equipment they are looking to purchase, which might lighten the financial burden. We understand that challenge and work with applicants to try and find a loan that will work for them.AELP Loan Board9-member board, appointed by the governor5 of 9 board members must have a disabilityThe board delegated decision-making authority to Alpha One in 2018 based on underwriting guidelinesIn 2020, approved additional guidelines for business loans and loans for non-adapted vehiclesThe Adaptive Equipment Loan Program board oversees the program and the bigger picture aspects of decision-making. They determine the interest rate, loan limits and guidelines, and delegate responsibility to the contractors who work under the program. In October of last year, they delegated to Alpha One the ability to approve and deny loans on top of all the intake and loan processing. Who can apply?Individuals with a disability or their family/friends - Loan has to benefit the person with a disabilityBusiness owners - For employees or customersA qualifying borrower demonstrates that the loan will assist one or more persons with disabilities to improve their independence or become more productive members of the community. The individual, corporation or partnership must demonstrate credit worthiness and repayment abilities to the satisfaction of the board.Terms and Rates3.75% interest rate for all approved loans**Different rates for business loansLoans can be from $250 to $100,000Loan length, monthly payment can be flexibleFor all qualified applicants: Loan terms are flexible and can make for affordable monthly paymentsAs loans are repaid, more loans are made creating an ongoing fund for Mainers with disability-related needs.The length of the loan has to be reasonable and cannot be longer than a typical life of the equipment being purchased.Criteria for an AELP LoanCAPACITY TO REPAY Money to make a monthly payment until the loan is paid offCREDIT HISTORY - No credit history or 569 or higher with no negative history (different for transportation assistance program)DEBT TO INCOME RATIO - Money owed per month (credit cards, rent/mortgage, etc.) divided by incomeWhat can be purchased with a loan?Hearing aids & communication devicesAccessible trucks, cars, vans, tractorsnon-adapted vehicles allowed under the Transportation Assistance ProgramAccess ramps, stair lifts, elevators, puters, computer technologyHome modifications, smart home technologyLow vision technology Wheelchairs, scootersAdapted recreation equipmentEquipment or technology that will assist one or more persons with disabilities to improve their independence or become more productive members of the community. The individual, corporation or partnership must demonstrate credit worthiness and repayment abilities to the satisfaction of the board.Exclusions from the program Home repairs not related to accessibilityE.g., Roof repairs, hot water heaters, septic tanks Refinancing an existing loanThe program is specific for ADAPTIVE EQUIPMENT, so something needs to have an adaptation for it to qualify for the program. There are some exclusions, which we can discuss on a case by case basis.If someone purchases equipment because of an immediate need using a credit card, which generally has high interest, they may be able to restructure that purchase through the loan program AS LONG AS THEY QUALIFY FOR A LOANPurchasing a home that is fully accessible and built can sometimes qualify, so the applicant would need to call Alpha One and discuss it Transportation assistance program (AELP-II)Loans for non-adapted (traditional) vehicles for Mainers with a disability3.75% interest rateCapacity to repay the loan requiredCREDIT HISTORYNo credit history, or 610 or higher with no negative historyTERMSNo longer than 5 yearsVehicle must be no more than 8 years oldNo co-applicants allowed, only person with a disability qualifies DOWN PAYMENT REQUIRED$1,900 must be paid before loan closing**PLAN FOR EMPLOYMENT REQUIRED**Applicant MUST have an individualized plan toward employment (usually with the Department of Vocational Rehab)Business Loan ProgramLoans for qualified businesses or partnershipsTo assist one or more persons with a disability to improve their independence or become more productive members of the communityInterest rates range from:Prime-1 to Prime +1 depending on the business’ credit historyBusiness Loan Qualifications Demonstrate the ability to repay the loanDemonstrate positive credit history based on a “loan matrix”Cash flow, debt ratio, management experienceProvide a personal guarantee in the event of loan defaultPrime is 3.25% as of June 10th. Can’t reimburse people, only new construction or rehabilitation. Anyone who owns over 20% would need to provide a personal guarantee – not possible in all cases, check with us with questions!Applying for a loanWorking with Alpha One intake staffFinancial literacy information and financial counselingSomeone calls Alpha One, asks us to go through the process. We discuss financials and have them submit an application, either over the phone or via mail or email. We are redesigning the website for this program and a fillable application will be available online for applicants. Along with a signed application, we ask for proof of income and expenses in order to see a financial picture. We are in constant contact throughout the process to assist an applicant if there are questions or issues.Once we receive ALL the relevant pieces, the application is submitted for review. When applying, we discuss other sources of funding. Sometimes, we will work with the Veteran’s Administration or the Bureau of Vocational Rehabilitation (if the vehicle is to be used to help improve transportation to work or school) to cover the modifications to the vehicles. We also work with the Agrability program to determine what adapted farm equipment might be the most prudent. The program can cover the remaining cost, of the vehicle itself to lessen the financial burden How does the process work?Decisions based loan guidelinesApproval/denial by Alpha One underwriterLoan board ONLY for appeals Terms of the loanClosing the loan, buying equipmentThe financial situation is reviewed by the underwriter and Alpha One team. After credit histories, etc. are weighed, a determination of approval or denial is made. We also discuss other steps (applying with a co-applicant, waiting a few months and saving money) before outright denial to give the applicant a chance to improve their financial situation and reapply. The applicant is informed of this decision. If they are denied, they can appeal the decision to the loan board. Previously, the loan board decided the loans and would only meet once a month. The loan process could take as many as a few months if there were follow up questions, etc. from the board. With the change in decision-making delegation, loan processing is much quicker and can take as little as one week to close a loan. The approval, commitment letter, and closure process takes place via mail. The checks are often made out to two parties and the applicant can take the check to the person from whom they are buying the equipment.If desired, an applicant can come to the South Portland office to close. Program highlightsA family with two sons who have Duchenne muscular dystrophy. Children are getting bigger, more difficult to transport them as they get older. Family able to purchase a new, fully adapted vehicle to allow for the family to transport the children to doctors’ appointments, school, social activities. This vehicle will meet the family’s needs as the children get bigger, if the need a wheelchair eventually, will be sufficient as they grow. A loan applicant who is an Occupational Therapist was a major difficulty with her hearing and needed hearing aids. Due to this and COVID-190 she was having trouble getting and maintaining work. Hearing aids have allowed her to continue working on a contract basis.Applicant needed a complete redesign of kitchen, bedroom, laundry room and installation of ramps for exterior doors for her father with MS to maintain independence, remain at home. The father also needed an adapted vehicle. From complete application to purchase of equipment took 13 business days and resulted in two loans of $85,500 lent, 15-year term, $621.78 per month for the modifications and $14,500 lent, 6-year term, $225.21 per month for the vehicle.Preparing to applyWhat/who will the loan be used for?What is your credit score?How much can you afford for a monthly payment?Do you think you should include a co-applicant?Do you have any price quotes for the items you are looking to purchase and who is the vendor?Program takeawaysThe Adaptive Equipment Loan Program finances affordable loans for Mainers with disabilities, families and Business owners.Financial loans give consumers purchasing power to buy the equipment & AT they want & need.Contact Alpha One to apply.ON THE WEB BY EMAILinfo@ Henry: hpowell@ BY PHONE(800) 640 7200 or Maine Relay 711Henry: 207-619-9239 ................
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