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As a result of the imputed-interest rules, below-market or interest-free loans are not as popular as they once were. The state also offers four-year, interest-free loans of up to $15 million (which may represent 100 percent of the budget) if state labor requirements are met and an additional reimbursement for hiring qualified state residents as production trainees. Department of Labor has removed the final obstacle to allowing interest-free loans to employee benefit plans facing a cash crunch. |
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