Infrastructure Revolving Loan

INTEREST RATE:

Quarterly average of 20 G.O. Bond Index rate less 4% for a county with median household income below the statewide average. The discount is 2% for a county above the statewide average. The rates for quarter October 1, 2008 through December 31, 2008, are 3.07% and 1.07%.

REPAYMENT PERIOD:

Within 20 years of project completion commencing within one year of project completion, dependent on the useful life of the project and source of repayment. Thirty year loans may be available for distressed systems.

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.

DEBT SERVICE
RESERVE:

None

OPERATIONS & MAINTENANCE RESERVE:

10% of loan debt service deposited to borrower- held account until balance equals 5% of original loan amount.

ELIGIBILITY:

Applicant must be a governmental agency. The project must be financially feasible as determined by KIA staff.

Basically, first-come, first-served, as long as funds are available and the project does not qualify for an SRF loan.

LOAN APPLICATION
PROCESS:

Obtain and file application document with Kentucky Infrastructure Authority. Prove economic feasibility to KIA staff. Obtain loan commitment from KIA board. Obtain construction bids, adopt adequate user charge rates, and pre-close KIA loan. Draw loan funds as project expenses incurred. Close loan upon essential project completion, adjusting loan amount and fixing repayment schedule.