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Fund B - Infrastructure

 

​Interest Rates:

These rates are effective July 1, 2018, and are subject to change. 

 

Repayment Period:

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

SFY 2019
Loan TypeMHI ThresholdInterest Rate
Construction> or = $44,8113.00%
Construction$35,850 - $44,8102.00%
Construction< or = $35,8490.50%
Planning and DesignNA3.00%

 

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:

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

 

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:

1.  Prospective borrower submits Letter of Intent to KIA (form located under Financial Assistance Forms)

2.  KIA determines funding availability and project eligibility

3.  KIA distributes either a loan invitation or declination letter

4.  Borrower submits loan application to KIA.

5.  KIA performs credit analysis and presents before KIA board for approval.