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Trust Fund Loan Program

Getting Ready to Apply
The Request for Financial Assistance system is designed to gather sufficient information for the Public Works Board to make a funding decision while making the process simple and fast for you. You will be asked a series of questions about the project, financing, and your jurisdiction. Most questions require a “yes” or “no” response. Some will require you to provide a more detailed response. To get started:
You will need to have the following information available in order to complete the Request form:
  • Type of jurisdiction
  • Type of system
  • Whether the Project is specifically identified in your jurisdiction’s Capital Facilities Plan
  • Name of the Project
  • Brief description of Project
  • Total Project cost
  • Desired loan amount (estimated)
  • Status of any other funding (if applicable)
  • The jurisdiction address, phone numbers, etc
  • A Project contact for the request (we will contact this person if we have a Questions)
Start your cultural resource assessment process-either 05-05 if you are only applying for PWTF or using other state funds, or the Federal Section 106 process if Federal funds or permitting are involved. Completion of the process will include consultation with the State Department of Archaeology and Historic Preservation and potentially affected tribes.
..Apply for Construction Loans
The Public Works Board (PWB) provides construction loans to local governments to finance critical public infrastructure systems. Local governments may use the funding to upgrade infrastructure, improve public health and safety, respond to environmental issues, promote economic development, or upgrade the performance of their systems. The PWB has developed a new process for applying and being selected for financial assistance. The purpose of the “new and improved” process is to enhance:
  • Outcomes of local governments’ financing requests
  • Thoroughness of review
  • Involvement of partner agencies
  • Transparency and the client experience
  • Efficiency
  • Board involvement and ownership of process and selected projects
  • Gubernatorial and Legislative support of selected projects
Key Dates:

March 15 Project request for assistance website opens

May 11 Project request for assistance website closes

March 15–July 27 Staff reviews:

  • Project Review (consult with resource agencies)
  • Managerial Review
  • Financial Review
  • Team Review & Development of Special Conditions
  • Board Sub-Committee and Oversight Group Review
  • Contract Negotiation

August 3 Board Review and Selection

August 4–November 1 Legislative reporting and process
2014 CONTRACT TERMS AND CONDITIONS:
LOCAL MATCH: No local match required
LOAN LIMIT: Maximum of $15 million per jurisdiction (with the possibility of additional funds being awarded on a per project basis at the Board’s discretion)
INTEREST RATES/TERMS:
Interest rates range from 0.5% to 2.0% and are linked to the repayment period – the longer the repayment period, the higher the interest rate. Repayment terms range from 10-30 years (the loan term cannot exceed the life of the asset).
Repayment Term in Years Interest Rate
10 0.5%
15 0.75%
20 1.0%
25 1.5%
30 2.0%
INTEREST RATES REDUCTION OPTIONS:
Financially distressed borrower options:
A: Rate-based systems with an Affordability Index (AI) of 2.01%, or more, have the option of reducing interest rates as shown below.
AI Interest Rate Reduction
2.01% - 2.5% (0.25%)
2.51% - or more (0.5%)
B. Non-rate based systems with a Debt Service Capacity Ratio (DSCR) of 1.25% or less, have the option of decreasing the interest rates:
DSCR Interest Rate Reduction
1.00% - 1.25% (0.25%)
1.00% or Less (0.5%)

Interest Rate Reduction Criteria
NEW SYSTEM OPTION ONLY:
Eligibility:
A. Any system that delivers previously unavailable services to a new customer base that repays debt incurred with the revenues generated by the new system. This does not include the replacement, expansion, or rehabilitation of an existing system or a system that already has existing revenues for that service, AND
B. Board approval based on utility rates as a percent of Median Household Income, AND C. Jurisdictions must meet all the standard threshold requirements
TERMS:
A. No loan payment for the first five years of the term selected from the NONDistressed Borrowers terms (Those systems that are financially distressed, may access the terms for distressed borrowers)
B. Interest accrues during the five year deferral period. In the 6th year of the loan, the borrower’s payment will consist of the accrued interest. In the 7th year of the loan, the borrower’s payment consists of both principal and interest.
 
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