Construction Financing • At any time after the facility plan is approved, the applicant may begin the process for an SRF construction loan. This includes working with a Municipal Advisor. The construction loan application is separate from the Intended Use Plan application and will include information on user rates, outstanding debt, and system financial data in the pro forma prepared by the Municipal Advisor.
• The applicant works with bond counsel to schedule and hold a public hearing and pass a bond resolution. The Iowa Finance Authority (IFA) will provide an estimated debt service schedule for the proceedings. • The construction loan application must be submitted to IFA. The construction loan application, with the pro forma attached, should be submitted after bids have been received and the amount of the loan needed to complete the project is known. • Current interest rate is 1.75% for loans up to 20 years, with a 0.5% origination fee and .25% annual servicing fee on outstanding principal. Extended financing for up to 30 years is available for some projects.
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