The GCL loan is a five-year loan that bears no interest. The process of the GCL loan may only be used for down-payment, closing costs or mortgage points associated with the purchase of a primary residence in the designated area.As long as an employee remains employed and continues to occupy the purchased property as a primary residence, a portion of the original principal amount will be forgiven annually on the anniversary of the loan closing date as described below.
|Months Elapsed after Loan Funding||Reduction Rate|
|Total amount forgiven After 60 months (5 years)||100%|
Events that trigger non-forgiveness: (any one of these events will trigger non-forgiveness)
If the sale or transfer of the home, ceasing to occupy the home or termination of eligible employment occurs prior to the anniversary date, the employee will not receive forgiveness in that year. Please note that a lien will be placed on the property until the full amount of the loan is forgiven. Employees will be notified annually of the amount of loan forgiveness and what amount, if any, would become due should they trigger a nonforgiveness event.