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(Additional funding information is available on the Funding Sources Links Page)
Development of the Small Issuer Loan Program: The Federal Government has adopted certain laws which allow counties, cities, special districts and non-profit organizations to borrow monies for their projects at tax-exempt rates. In the past, the issuance costs associated with tax-free financing have often made it impractical for these entities to use tax-exempt financing for small to medium – sized projects. Now, thanks to this innovative financing vehicle, projects as low as $5,000 can be made on a tax-exempt interest rate basis. How Much Money is Available? Initially, this Program has been funded at the $100 million level. The Program can generate additional funds in order to meet future demand. Who is Eligible to Borrow? All Kentucky Counties, Cities, and Special Districts with taxing powers, except those which will issue more than $5 million in tax-exempt debt during the current calendar year (inclusive of the debt under this program) are eligible to borrow under the Small Issuer Loan Program. Also, most Water Districts are eligible to borrow directly from the Program, rather than as a pass through from the County. How Much May We Borrow? There is no "minimum" lease amount. Ideally, funds would be loaned in amounts of $5,000 or higher. The maximum lease amount is $5,000,000. What Can Be Financed? Virtually any public project or purchase can be financed through the KADD Small Issuer Loan Program. Examples include: Fire Trucks, 911 Systems, Police Cars, Garbage Trucks, Buses, Other Vehicles Computer Hardware Office Buildings/Renovation, Office Equipment, Road and Street Repairs, and Road Equipment. What are the Advantages of the KADD Financing Trust Small Issuer Program? There are several important features of this program which make it a very attractive financing option to Kentucky Counties, Cities, and Special Taxing Districts, including: 1. Significantly Reduces Interest Costs – Counties, cities, and special taxing districts are able to access the interest-rate advantages of the "tax-free" municipal bond market to finance needed public projects. 2. Minimizes Closing Costs and Costs of Issuance – most of these costs are paid by the investment earnings of the program funds. 3. Locks - I n Fixed Principal and Interest Payments – Rates are based on the current market rates and fixed for the life of the lease. 4. Rapid Turn-Around Time – application approval within five to seven business days. 5. Lease Term Options – you select from one to thirty years, depending on the project and your particular needs. What is the Interest Rate? Interest rates are based on market rates at the time of borrowing which allows the Trust to always offer competitive rates. Rates differ depending upon the term of lease selected. Contact Ross, Sinclaire & Associates (800-255-0795) for current rates. Low Interest Loans Available for Local Solid Waste Management Projects Area Development Fund Process County Application Process Each Fiscal Court has the responsibility to formulate county ADF allocation procedures, within the statutory and administrative guidelines, to include a public notice, an application process, and a process for ranking projects. Eligible Projects 1. The construction, reconstruction, renovation and maintenance of buildings and other improvements to real estate. Ineligible Projects 1. Feasibility studies or master plans for any capital improvement. Minimum Project Amount (ADF amount) $2,500 Project Review and Approval The projects selected for funding by the respective Fiscal Courts are submitted to the NKADD Board of Directors for approval. Approved projects are submitted to the Kentucky Department of Local Government for review and funding draws. For more information, please contact Richard Bragg at (859) 283-1885. NKADD Revolving Loan Fund |