Lakewood UEZ loans: pay 30 days late and forgiveness is suspended

The Lakewood Development Corporation has set new rules for its UEZ Business Low-Cost Expansion Loan, The Lakewood Scoop reports. A payment more than 30 days late now counts as a default and suspends loan forgiveness.

A business can earn forgiveness back with three on-time payments after a first default, or six after a second. A third default, or any payment 90 days late, ends eligibility for good unless the board grants an exception for hardship or a processing error.

The forgiveness itself hasn't changed. A business that adds two full-time jobs can have 50% of the remaining principal forgiven, up to $25,000. One new job gets 25%, up to $12,500. Forgiveness doesn't cover interest, late fees or legal costs, and every requirement has to be met within the loan's five-year term. The rules apply to new loans, and LDC's lawyers will review how they affect existing ones.