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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 Rates:

These rates were approved by the KIA board on July 6, 2017, and are subject to change.

SFY 2018
Loan Type                          MHI Threshold                          Interest Rate
Construction                          > or = $43,740                          2.75%
Construction                          $34,993 - $43,739                          1.75%
Construction                          < or = $34,992                          0.50%
Planning and Design                          NA                          2.75%

Repayment Period:

First repayment due within one year of project completion.   Thirty-year loans may be available for disadvantaged communities.

Application Fee:


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:


Replacement Reserve:

5% of the gross KIA loan amount funded over 20 years and maintained by the borrower for the life of the loan.


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



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Last Updated 10/23/2017