Federally Assisted Wastewater Revolving Loan

INTEREST RATE:

The standard rate is 3.0% and the non-standard rates are 2% and 1.0% for the period July 1, 2008 to June 30, 2009. To qualify for the 1% hardship rate, the community’s median household income must be below $26,938 (80% of the MHI of the Commonwealth). To qualify for the 2% non-standard rate, the borrower must have a MHI between $33,672 and $26,937 (80% of the State MHI) or be considered regional, or the project must assist the system to achieve compliance with an order or judgment addressing environmental noncompliance.

REPAYMENT PERIOD:

Within 20 years of project completion commencing within one year of project completion.

APPLICATION FEE:

None

LOAN SERVICE FEE:

A fee of 0.20% of the unpaid loan balance paid annually.

LOAN PAYMENT FREQUENCY:

Semi-annually each June 1 and December 1.

REPLACEMENT RESERVE:

Dependent of the useful life of the assets being funded.

ELIGIBILITY:

Must be for wastewater treatment facilities that comply with the Clean Water Act. Project must be included on the project priority list in the Intended Use Plan for the Clean Water State Revolving Fund loan program. An approved 201 Facilities Plan must include the project for which funding is requested.

PRIORITY OF LOAN
AWARDS:

Awards are based on the project ranking on the Clean Water Project Priority List. Applicants are invited to apply for funding based on the degree of environmental impact of the project.

LOAN APPLICATION
PROCESS:

Upon receipt of the letter of invitation, obtain and file the application document with KIA. After meeting the financial requirements obtain a loan commitment from KIA board. Complete the DOW technical planning requirements, obtain construction bid, adopt adequate user charge rates and execute the Assistance Agreement. Draw loan funds as project expenses are incurred. Finalize loan amount upon essential project completion and confirm repayment schedule.