community programs: water and waste disposal direct loans and grants rural development
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Georgia FY 2016 Funding Allocation
• Unknown at this time
• Operating under Continuing Resolution until December 11, 2015
Present rates (subject to change quarterly):
Market - 3.250% (above $49,785) Intermediate - 2.625% ($39,828 - $49,785) Poverty - 2.000% (below $39,828)
NOTE: Interest rate is based on applicant’s median household income as shown in the 2006-2010 American Community Survey. The Poverty Rate also involves alleviating a documented health or sanitary problem.
Program Interest Rates (as of October 1, 2015)
Eligibility
• Rural communities with populations of less than 10,000 (2010 Census)
• Cannot obtain financing through bonds or from other lenders at reasonable rates and terms
• Must be a Public Body or Non-Profit Corporation
• Must have the legal authority to incur debt
Facilities eligible for fundingSmall municipal and rural: water systems sewer systems
NOTE: Projects must be primarily for the benefit of rural residential users.
USDA funds cannot be used for:
• On-site utility system
• Business and industrial buildings in industrial parks
• Recreational facilities
• Lavish facilities
• Combined sanitary and storm water facilities
Terms of Repayment
• Useful remaining life of facility or 40 years, whichever is less
• Up to 3 year deferral of principal to allow a new facility to become operational and financially stable
• Interest payments are due during the deferral period
• No prepayment penalty
Security
Public Bodies
Non-Profit Corporations
• revenue bonds • general obligation bonds • special assessment bonds
• promissory notes• real estate mortgages• financing statements• security agreements
Maximum Loan Amount
Up to 100% of eligible project costs subject to:
• Adequate security
• Ability to repay
• Applicant’s authority to borrow
• Availability of funds
Grants• Cannot be received with a guaranteed loan• Are used to supplement direct loans to
reduce user rate costs to a reasonable level (at least 1.0% MHI)
• Cannot exceed 75% of eligible costs for projects eligible for poverty rate; 45% for intermediate rate (80% to 100% State Nonmetropolitan MHI)
• Limit of $3.5 million per project
Georgia FY 2015 Funding Allocation
Direct Loan Funds $70,028,750CF Grant Funds $ 484,000EII Grant Funds $ 163,100
Georgia FY 2016 Funding Allocation
• Unknown at this time
• Operating under Continuing Resolution until December 11, 2015
Present rates (subject to change quarterly):
Market - 3.250% (above $49,785) Intermediate - 3.875% ($39,828 - $49,785) Poverty - 4.500% (below $39,828)
NOTE: Interest rate is based on applicant’s median household income as shown in the 2006-2010 American Community Survey. The Poverty Rate also involves alleviating a documented health or sanitary problem.
Program Interest Rates (as of October 1, 2015)
Facilities eligible for funding
Any “essential” community facility that:• Is customarily provided by a local unit
of government• Is a public improvement needed for the
orderly development of a rural community
• Does not include commercial or business undertakings
• Is operated on a non-profit basis
Program BenefitsThe following types of facilities were funded in the past:
• Police Cars• Fire Trucks• Courthouse Renovation• City Hall Renovation• EMS Building• Library Equipment• Hospital Equipment
Eligibility
• Rural communities with populations of less than 20,000 (2010 Census)
• Cannot obtain financing through bonds or from other lenders at reasonable rates and terms
• Must be a Public Body or Non-Profit Corporation
• Must have the legal authority to incur debt
Loan Terms
• Up to 40 years dependent upon the useful life of the security and repayment ability.
• Principal can be deferred for up to 3 years to allow facility to become operational.
• Interest payments are due during the deferral period.
Direct funds cannot be used for:
• On-site utility systems• Business and industrial buildings in industrial
parks• Recreational facilities (except for Guaranteed CF
Loans)• Lavish facilities• Loan and Grant Finder’s Fees
Security (Direct Loans)
Public Bodies
Non-Profit Corporations
revenue bonds general obligation bonds special assessment bonds promissory notes real estate mortgages
promissory notes real estate mortgages financing statements security agreements revenue anticipation bonds
Maximum Loan Amounts (Direct)
Up to 100% of eligible project costs subject to:
• Adequate security• Ability to repay• Applicant’s authority to borrow • Availability of funds
Community Facilities Grants
• Very little available each year• FY 2015 - $647,100 with both CF and EII• Cannot make a 100% Grant. There must be
other funding.• Maximum grant is 75%.• State policy is $25,000 maximum
USDA StrikeForce Counties
• Initiative of Secretary of Agriculture
• Focus on Persistent Poverty Counties
• 60 Counties in Georgia
Cartersville Monroe
Fort Valley
Sandersville
Tifton
Douglas
GEORGIA
USDA
Rural Development
Area Offices