MI SB0719

Allows loan recipients to request renegotiation of loan terms upon showing financial hardship related to the financed project, including changes to loan length, interest rate, and repayment terms.

Prohibits the administering state department from reducing or eliminating the outstanding loan principal during any renegotiation.

Requires the department to report to the legislature on the number of loans refinanced, the responsible local units of government, and the changes made to loan terms.

Maintains existing provisions for loan management, including interest rates at no more than 50% of prime rate, repayment schedules of 5-15 years, and provisions for default and state payment withholding.

Effective date: April 11, 2014.