DRAFT

Loan forgiveness will be applied to the portions of the project that meet priority project criteria. The final amount of loan forgiveness offered will be based on the eligible costs related to the final amount drawn on the loan. Loan forgiveness is applied as principal forgiveness on the date of the final loan disbursement. Priority Project Percentage Eligibility for loan forgiveness will first be assessed based on the type of project seeking funding. If the project is one of the priority projects listed in this Annex, the borrower will then be evaluated for disadvantaged status based on the Socioeconomic Assessment Score criteria, described below. Socioeconomic Assessment Score The second element of the loan forgiveness equation is an assessment of the community or service area’s underlying socioeconomic and demographic condition that can determine the affordability of wastewater infrastructure projects. A Socioeconomic Assessment provides a comprehensive analysis of factors that typically determine whether a community is disadvantaged. The disadvantaged status of a borrower for the purpose of SRF loan forgiveness eligibility will be determined by assessing 15 datapoints from publicly available sources produced by the U.S. Department of Commerce, Centers for Disease Control and Prevention (CDC), U.S. Department of Housing and Urban Development (HUD), Iowa Workforce Development, Iowa Department of Management, and the State Treasurer of Iowa. Data will be updated annually for each community and made available at IowaSRF.com. The CWSRF program will use this data to determine if a borrower meets the affordability criteria for the purpose of SRF loan forgiveness eligibility.

Category/Metric

Source

Income and Poverty • Median Household Income (MHI)

American Community Survey American Community Survey American Community Survey American Community Survey

• % below poverty level • % Public Assistance/SNAP

• % Supplemental Security Income

Labor Force • Unemployment rate of primary county

Iowa Workforce Development 3 American Community Survey

• % not in labor force Demographics • Population Trend

Decennial Census

• % Over age 65

American Community Survey American Community Survey Centers for Disease Control

• % non-white, not Hispanic (% minority)

• Social Vulnerability Index

Housing

3 Local Area Unemployment Statistics, rolling 12-month average unemployment rate of the primary county