Kentucky Infrastructure Athority - Banner Imagery - link to home page

Water Resource Information System

Kentucky Unbridled Spirit (TM)

Infrastructure Revolving Loan

Information regarding Fund B Revolving Loan Program can be found below.

Loan Term Sheet

INTEREST RATE:

2017 Funding Cycle:  The standard rate is 2.75% and the non-standard rates are 1.75% and 0.25% for the period July 1, 2016 to June 30, 2017. To qualify for the 0.25% hardship rate, the community’s median household income must be at or below $34,673 (80% of the MHI of the Commonwealth). To qualify for the 1.75% non-standard rate, the borrower must have a MHI between $43,342 and $34,673 (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.

2018 Funding Cycle:  The interest rates are adjusted at least annually and have not been set for the 2018 funding cycle.  However, the MHI thresholds have been established which determine the interest rate category and are as follows:

Standard Rate:  MHI > $43,740
Non-standard Rate: MHI between $43,740-$34,993
Lowest Non-Standard Rate: MHI < or = to $34,992

Interest rates will be set by the KIA board prior to the start of the 2018 SFY.

REPAYMENT PERIOD:

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

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:

Dependent of the useful life of the assets being funded.

ELIGIBILITY:

Eligible projects are those permitted by KRS224A.011(16).  The applicant must be a governmental agency and the project must be financially feasible as determined by KIA staff.

PRIORITY OF LOAN
AWARDS:

First-come, first-served, as long as funds are available.

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.

 

Contact Person
 

Donna McNeil
502-573-0260 x222
Email

 

Resources
   

Download Adobe Acrobat Reader

External Link - You are now leaving the .gov domain


Last Updated 3/17/2017