The Guaranteed Loan Program

Technology Loans from a TAP Maryland Loan Program Give Not Just Money, But Independence and Opportunity

By Corrine Hammett, Guest Author

"I feel really blessed, I was taught early in a school for the blind to do as much as possible for myself, not to be coddled; that has always been so important in my life. And now, I have a real feeling of independence, I feel as if I can do anything I want to do." Speaking in a voice energized with enthusiasm is Debra Crawford of Ocean Pines, Maryland on the Eastern Shore.

Crawford is one of the many people whose lives have become eminently more satisfying after she obtained a loan from The Assistive Technology Guaranteed Loan Program, operated by the Maryland Technology Assistance Program, of the Governor' s Office for Individuals with Disabilities. The title of the program may be cumbersome, but the results can be stated simply: loans at low interest rates for people with disabilities who want to take charge of their life.

"The problem with getting a loan from a bank, is not just the high interest rate, but that most of the time they don't really understand what you're talking about. So they wonder, why do you need it?" says Crawford. For example, why did she need a $5,000 device, weighing less than three pounds, with a special keyboard to put data into a computer system, or on disk. The device helps Crawford and her home business. Information she needs can be read by the computer, hooked up to a braille light or even printed out. She uses it for Email, to keep track of her knitting and crocheting business, to read patterns, for other home business projects and to balance her checkbook. When she takes her colorful Afgans, and knitted baby items to fairs, she takes along another device, a Bill Identifier to differentiate the denominations of the money.

While 32 other states have programs that are somewhat similar, Michael Dalto, Co-Director of the Maryland Loan Program, with offices in Baltimore, MD., states that the uniqueness of the state' s program is the ability to use innovative strategies. "One of our lenders is a credit union so their underwriting criteria is generally more flexible, and interest rates are lower. We have a nice arrangement with SECU (The State Employees Credit Union) for persons approved for loans without guarantees, without collateral." The Loan Guarantee Program guarantees the loan and subsidizes the interest rate, which can be as low as 4 percent. The Loan Program also has a second lender, a commercial bank.

The Loan Program doesn't just hand out money indiscriminately. There are criteria.

The process begins with an application, which is sent to a lender who uses usual criteria; "in about 90 percent of the cases they turn down the loan," says Dalto. "We then have our Board of Directors review the request." Of the nine persons on the Board, seven have a disability; backgrounds include accounting, banking, the law, and business.

"The Board uses the same basic issues that lenders do, credit reports," says Dalto, but the Board listens to the applicant; such as why do they have poor credit. "Maybe it' s because they lost their job due to a disability or an injury, or to care for a child with a disability. If debt is more than 50 percent of income we might turn them down.

But, there are exceptions. Maybe the applicant lives frugally, is paying bills on time, so we look at disposable income and monthly expense statements." As a result, the program has approved eight non-guaranteed loans during its two plus years of operation.

The loan record of the program is impressive. Since loans began going out, in 1999, the program has approved 105 guaranteed loans for a total of over $1.1 million, there have also been eight non-guaranteed loans approved for $67,000. The figures represent activity to September 26, 2001.

What have people borrowed money for? Mostly for vehicles and vehicle modifications, and computers, some with adaptive peripherals, but also for wheelchairs, motorized scooters, Braille equipment, scanners, hearing and vision aids, Text telephones (TTY), augmentative communication systems, environmental units, building modifications. A loan can be for $500 to $20,000.

The Loan Program isn't just dollars, it's about giving people a chance, it's about empathy and understanding. Dalto says, "We are giving people something so tangible I can definitely see the results. Often just one piece of equipment makes a huge difference in someone's life. I can literally see positive benefits for every borrower." He admits that, "We have taken some significant risks, which we felt necessary.

"One borrower's income declined unexpectedly, suddenly, and she had informed us that was happening. We spotted her less than half of her monthly payment and she will pay us off later." He has no doubts that she will pay back the money.

One case illustrates the advantages of having disabled persons on the Board. An applicant recently wanted a computer to communicate with other deaf people. "One Board member, who has a different disability, didn' t understand why a computer was needed rather than a less expensive TTY device. A deaf person on the Board explained that computers are more universally accessible, can do more than a TTY, offers Email, and that many deaf are now using computers. The loan was approved."

Each loan story is special. One loan eliminated a credit card debt for a disabled man at 27 percent interest to 4 and a half percent through the Loan Program. Another loan enabled a man with a part time real estate job to set up a home office with an adaptive computer; he got a broker' s license, increased his number of clients and paid off his three-year loan in one year. A deaf couple purchased a loan-financed telecommunications device and visual alert devices to keep track of their very active young children.

A $19,000 loan enabled a Western Maryland family to buy a van for their son, 12, with Duchene Muscular Dystrophy, and gave him happy, unexpected benefits. The loan came during a stressful time for the family and for Cody who underwent an operation at Johns Hopkins Hospital to fuse his spine. " While its not the best van in the world, (it was a used one) it gets us where we need to go," says Susan Newton of Oakland Maryland, in Garrett County. The van is used to transport Cody, to school and recently to the Garrett County Fair where he won Grand Champion in the market dairy goat category and placed high in the market pig category. This was an especially thrilling time for everyone and for a very pleased Cody who earned $1,000 at the fair by selling his animals. Though he' s disabled, he cares for the animals (the Newtons have a barn with wheelchair accessible doors) and buys their supplies, including the feed.

D.
Cody Ferguson, 12, of Garrett County at the Garrett County fair with his Grand Champion dairy goat, Meatball.

While there are other devices Newton can see they might need in the future, such as a lift into the van; and a more accessible entrance to the house so Cody can take his wheelchair directly into his room and the rest of the house, that will have to wait. Now, his mother says, they carry him into the house.

When the Newtons bought the newer van, money was owed on the old one, so even though Susan is a teacher in the Alternative Education Program with the Garrett County schools and her husband is a supervisor with a moving company, money is still a factor in purchasing expensive devices and home modifications. Still in the future is software that will allow Cody to work his computer by voice commands. But now, the loan has changed their lives and the hope is obvious in Susan Newton's animated voice when she talks about Cody's achievements.

The Guaranteed Loan Program was launched in '98, with $500,000 in State funds, and the program received a $500,000 federal grant in October 2000. They have applied for $1.1 million this year and will know in the fall if they have received the grant.

The Guaranteed Loan Program reaches in many directions.

The office has gathered data for a Home Modifications Resource Guide, which can be found on the Division of Rehabilitation Services (DOORS) Web site. The Board has a Vehicle Modification Committee researching options for borrowers, such as factory-installed modifications, allowing less expensive future alterations. Included are raised roofs, lowered floors and extended electrical cables. Modifications to vehicles are a frequent need and borrowers also need to know which dealers' modifications have been successful.

Discounts for equipment is another area into which the Loan Program is expanding. Through the Assistive Technology Cooperative, which operates out of the same Technical Assistance Program office where Dalto works, the loan borrowers are able to buy software and other devices at the much less expensive bulk rate. The Co-op has negotiated discounts with numerous vendors using the collective buying power of its members, mostly school systems. "This relationship is completely unique to Maryland," says Dalto.

The program also has a co-director, Tony Rice, who has helped in marketing, promotion and in many other ways. "For a while I was the only staff," says Dalto, now the program can expand and " with more funds, especially if we get the Federal grant, we'll be able to give more loans."

More loans will give people like Debra Crawford and the Newtons more hope and more chances to live fuller lives. Crawford says it simply, " We want to be productive members of society, I feel so sad when I see disabled people sitting home, not going out because they don't have the confidence."

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Since this article was written, MD TAP and the Loans Program has received wonderful news...

Congratulations to Michael Dalto and Tony Rice on successfully competing for another federal grant to expand the Guaranteed Loan Program. The Guaranteed Loans Program has been awarded a little over $1.1 Million in new federal funding for the program. Way to go guys!