DRAFT

Interest Rate

Servicing Fee

Loan Term

Applicant Type

Total

Standard Tax-Exempt (up to 20 years)

All All All

1.75% 2.75% 2.75%

0.25% 0.25% 0.25%

2.00% 3.00% 3.00%

Extended (21 to 30 years based on useful life)

Taxable Loans (up to 20 years)

The SRF program continually monitors the market to ensure that our loan interest rates are appropriate while taking the program’s cost of funds into account. Any necessary changes to loan interest rates will be communicated via future IUPs. Fees Loan initiation fees. A 0.50% loan origination fee will be charged on new CWSRF loans up to a maximum fee of $100,000. Under U.S. EPA rules, because Iowa’s origination fees are financed through the loans, the proceeds are considered program income. Program income can only be used for the purposes of administering the CWSRF program or for making new loans. Loan initiation fees will not be assessed on loans to borrowers that meet the affordability criteria and receive loan forgiveness due to their score on the Socioeconomic Tool. Loan servicing fees. A servicing fee of 0.25% on the outstanding principal is charged on CWSRF loans. Payment of the loan servicing fee is made semi-annually along with scheduled interest payments. Loan servicing fees are calculated based on the outstanding principal balance. Under U.S. EPA rules, only servicing fees received from loans made above and beyond the amount of the Capitalization Grant and after the Capitalization Grant under which the loan was made has been closed are considered Non-Program Income. Non-Program Income can be used to administer the program or for other water quality purposes. The uses of Non-Program Income are discussed in Section I of the base CWSRF Program IUP. Co-Funding The BIL General Supplemental Fund can be combined with base CWSRF loan dollars and loans and grants from other agencies. A single SRF assistance agreement will be used for projects that co-fund projects using both base CWSRF and BIL General Supplemental Funds. See Special Conditions below for Build America, Buy American Act (BABA) rules as they apply to co-funded projects. Special Conditions Projects identified as “equivalency projects” are those projects that receive loan disbursements directly from Iowa’s federal allocation for the BIL General Supplement Fund. Equivalency projects are required to comply with all federal law regulating the BIL General Supplemental Fund, including but not limited to BABA. The CWSRF Program will work directly with projects identified as equivalency projects to ensure a full understanding of compliance requirements. SRF Projects that are not equivalency projects may still be subject to BABA compliance if the infrastructure project is being co-funded by another federal agency. If this occurs, the entire project will be required to comply with BABA requirements. In these cases, the SRF Program will only need to document compliance with AIS domestic provisions. The SRF Program will coordinate with the applicant and the co-funding agency to avoid duplicating efforts to document and demonstrate AIS compliance. Signage The BIL signage term and condition requires a physical sign displaying the official Building a Better America emblem and EPA logo be placed at construction sites for BIL-funded projects. This requirement applies only to the following projects: • Construction projects identified as “equivalency projects” for BIL general supplemental capitalization grants; • Construction projects that receive additional subsidization (grants or forgivable loans) made available by BIL general supplemental capitalization grants