Fund B - Infrastructure
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Interest Rates:
These rates are effective July 1, 2021, 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 2022
Loan Type | MHI Threshold | Interest Rate |
Construction | > or = $50,589 | 2.00% |
Construction | $40,472 - $50,588 | 1.00% |
Construction | < or = $40,471 | 0.25% |
Planning and Design | NA | 2.00% |
Broadband | NA | 4.00% |
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.
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