Commitments to local entities may be cancelled by the Department after they have been approved but before any disbursements have been made, or further disbursements may be cancelled after initial disbursements have been made if a local entity is not operating the program in accordance with the schedule or other provisions in the application or Standard Agreement or if the objectives of the commitment cannot be met. Upon notice of cancellation, the local entity shall have a right to a hearing before the Loan Committee. The Loan Committee shall consider the appeal at its next regularly scheduled meeting and make a recommendation to the Director, whose decision shall be final.