Volume 12, No. 4, Fall 2004	Previous Issues Subscribe to AT Messenger Download PDF Viewer
	PDF Version (for printing) Large Print (PDF) Text Version

$1.7 Million AT Loan Program On the Horizon

Beth Mineo, DATI Director

In Delaware, most families have nowhere to turn to get help in paying for assistive technology (AT) such as home and vehicle modifications, computers, and hearing aids. They either pay for them out of personal funds, or simply do without.

Other states have countered this problem by creating AT loan programs, which have proven to be popular, economically-sound alternatives for people who need AT. These programs, which typically feature loan guarantees, low interest rates, and flexible repayment terms, enable those who might otherwise not qualify for a loan to borrow money for the purchase of needed equipment and modifications. AT loan programs nationwide have an astoundingly low default rate, demonstrating that people with disabilities need this service and take responsibility for loan repayment.

In Spring 2002, DATI assembled a group of stakeholders representing state agencies, consumer interests, and the private sector to explore the feasibility of establishing a loan program. Late last summer, the federal government made us an offer that was simply too promising to pass up: if we could raise financial support for the loan program here in Delaware, the federal funders would match that support at either a 3:1 ratio (for a general AT loan program) or a 9:1 ratio (for a telework loan program enabling people to get equipment they need in order to be able to work from home). With the Delaware Division of Vocational Rehabilitation serving as the lead agency, Delaware applied for federal funds to support the operation of both types of low-interest loan programs. In September of last year, Delaware was awarded almost $1.4 million from these competitions, which we could only access if we were able to raise $345,000 in matching funds from Delaware sources within a 12-month timeframe.

Owing to the efforts of many individuals, organizations, and the state legislature, we met our fundraising goal in July of this year. We are immensely grateful to the following donors that enabled us to meet the match requirements:

DEXSTA Federal Credit Union $50,000

Delaware Health and Social Services 20,000

Patterson Schwartz Foundation 1,000

State of Delaware (through legislative action) 275,000

We are also tremendously grateful to the Division of Vocational Rehabilitation for accepting the lead agency role. The federal guidelines required that a state agency make application for the funds, and without the Division's willingness to join this effort, we would have had to forfeit this opportunity to establish AT and Telework loan programs in Delaware.

So where do we go from here? The $1.7 million "nest egg" supporting this effort is on deposit in a State of Delaware account. A Loan Program Advisory Board has been formed, and has met to review draft policies and procedures. The federal agencies providing oversight have approved the policies. We are finalizing negotiations with local banks that will function as our lending partners, and we hope to accept our first loan applications by late Fall 2004. A detailed overview of the program and its operation will appear in the next issue of The AT Messenger. Until then, check the DATI Website's "AT Funding" page—it will be updated regularly as the guidelines and application forms become available.

For more information, contact Beth Mineo, DATI Director, at (302) 651-6836.