QMC

Proceeds from a Bona Fide Loan

Proceeds from a loan are anything an individual or their spouse receives from someone that they agree to pay for at a later date. The applicant/participant or their spouse can make the agreement with a lending institution such as a bank, or another individual. The loan agreement must be enforceable under State law.

A loan is bona fide if:

it is supported by a written agreement to repay within a specified time or received from an individual or establishment engaged in the business of making loans; or

there is an obligation to repay (with or without interest); or

there is a pledge of real or personal property or anticipated income with the intent to repay when funds become available or future anticipated income is received; or

there is a written timetable and plan for repayment.

If the loan is bona fide, the value of the cash or item the applicant/participant or their spouse receives is not income. However, any borrowed funds not spent in the month received, will count as an available resource the next month.

Missouri Department of Social Services Income Maintenance Manual.

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