April 1999

D.	Getting Your Money: AT Loan Program Expands

Getting a Loan Without Giving Up Your Firstborn Child: The New Assistive Technology Guaranteed Loan Program

Before the year is out, Marylanders with disabilities will be able to get loans to buy assistive technology - even if a bank would normally turn them down. The Assistive Technology Guaranteed Loan Program will offer low-interest loans through banks and credit unions to people with disabilities and their families. The program will guarantee loans (provide government funds as collateral) when borrowers don't qualify for standard bank loans due to insufficient credit or employment, limited income or high debt. People who apply for loans just need to show the program they have the ability to repay their loans. Loans can be used to buy a wide array of devices, including hearing aids, communication devices, Braille equipment, wheelchairs, accessible computers, vehicles, modifications to homes and vehicles, and many more.

Governor Glendening committed $500,000 in his budget for the program. The Governor acknowledged that most people who need assistive technology must pay for at least some of the equipment themselves - or do without it. While insurance policies and government programs fund some assistive technology, they don't cover all necessary items, and often involve restrictions on eligibility, cost caps, deductibles and co-payments. People need loans to buy expensive devices that are not covered by other funding sources.

But as most people who've applied for bank loans can verify, it's not always easy to borrow money. Most banks operate under the unwritten motto, 'We make loans to people who don't really need them'. If you have limited income, you're unemployed or haven't worked steadily, your debt load is too high, or you have any blemishes on your credit record, your 'friendly neighborhood bank' stops being friendly.

The Assistive Technology Guaranteed Loan Program will change all that. People who need loans will apply to the program's Board of Directors, most of whose members have disabilities and use assistive technology themselves. The Board will evaluate an applicant's ability to repay a loan, but will apply far more flexible standards on income, credit and debt than banks do. For applicants who are approved, the program will guarantee the loans, which participating banks and credit unions will provide. The program can offer interest rates well below standard rates provided by banks. This is a great way for people who use Plans for Achieving Self Support (PASS), Blind Work Expenses (BWE) and other work incentives in the Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs to get loans to buy equipment for which the work incentives will pay.

The program is closely modeled after similar projects in 27 other states. Assistive technology loan programs have enjoyed great success, lending millions of dollars annually - and collecting full payment on over 95% of all loans.

At press time, the Maryland General Assembly was reviewing the program's budget and legislation needed to create it. Next month's issue of Tapping Technology will provide an update, and future issues will offer details on how to apply for loans. Stay tuned! Getting a Loan Without Giving Up Your Firstborn Child: The New Assistive Technology Guaranteed Loan Program

Before the year is out, Marylanders with disabilities will be able to get loans to buy assistive technology - even if a bank would normally turn them down. The Assistive Technology Guaranteed Loan Program will offer low-interest loans through banks and credit unions to people with disabilities and their families. The program will guarantee loans (provide government funds as collateral) when borrowers don't qualify for standard bank loans due to insufficient credit or employment, limited income or high debt. People who apply for loans just need to show the program they have the ability to repay their loans. Loans can be used to buy a wide array of devices, including hearing aids, communication devices, Braille equipment, wheelchairs, accessible computers, vehicles, modifications to homes and vehicles, and many more.

Governor Glendening committed $500,000 in his budget for the program. The Governor acknowledged that most people who need assistive technology must pay for at least some of the equipment themselves - or do without it. While insurance policies and government programs fund some assistive technology, they don't cover all necessary items, and often involve restrictions on eligibility, cost caps, deductibles and co-payments. People need loans to buy expensive devices that are not covered by other funding sources.

But as most people who've applied for bank loans can verify, it's not always easy to borrow money. Most banks operate under the unwritten motto, 'We make loans to people who don't really need them'. If you have limited income, you're unemployed or haven't worked steadily, your debt load is too high, or you have any blemishes on your credit record, your 'friendly neighborhood bank' stops being friendly.

The Assistive Technology Guaranteed Loan Program will change all that. People who need loans will apply to the program's Board of Directors, most of whose members have disabilities and use assistive technology themselves. The Board will evaluate an applicant's ability to repay a loan, but will apply far more flexible standards on income, credit and debt than banks do. For applicants who are approved, the program will guarantee the loans, which participating banks and credit unions will provide. The program can offer interest rates well below standard rates provided by banks. This is a great way for people who use Plans for Achieving Self Support (PASS), Blind Work Expenses (BWE) and other work incentives in the Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs to get loans to buy equipment for which the work incentives will pay.

The program is closely modeled after similar projects in 27 other states. Assistive technology loan programs have enjoyed great success, lending millions of dollars annually - and collecting full payment on over 95% of all loans.

At press time, the Maryland General Assembly was reviewing the program's budget and legislation needed to create it. Next month's issue of Tapping Technology will provide an update, and future issues will offer details on how to apply for loans. Stay tuned!

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