Streamline - Summer 2017 - 30

RUS-Funded Projects:
New Requirements
BY KENT WARE, COMMUNITY PROGRAMS DIRECTOR, RD IN VIRGINIA

attending
the annual conference this year. It was
a time to become reacquainted with old
friends and gave me the opportunity to
observe again the dedication and professionalism of those folks involved in
the water and wastewater industry. As I
touched on briefly in our presentation,
USDA Rural Development, as mandated
by our regulations, is requiring interim
financing during the construction period
for any RUS-funded project with a loan
amount exceeding $500,000. Although
this causes some additional work on
the part of our borrowers, there are
many advantages to interim financing
for both the borrower and the Agency.
These include:
* Preserving the full 40-year term until
the Rural Development loan closes;
* Allowing for a possible longer interest
only period;
* Interest rates for the interim financing
are generally lower than the interest
rate of the Rural Development loan;
* If the full loan is not needed, the
Rural Development loan is closed at
the lower amount, resulting in lower
borrower payments;
* Multiple advance is not an easy process for the Agency and can result in
issues with payments being required
from the borrower during the construction/interest only period; and
* Interim financing helps you, the borrower, establish lender relationships,
thereby promoting public-private
partnerships.
Please note that any interest charged
by the interim lender is considered an
eligible loan expense for the RUS loan.
You may also need to obtain a loan to
I THOROUGHLY ENJOYED

30 S T R E A M L I N E * S u m m e r 2 0 1 7

USDA Rural Development, as mandated by our
regulations, is requiring interim financing during the
construction period for any RUS-funded project with a
loan amount exceeding $500,000.
pay for professional services such as
engineering, environmental and legal
services during the development of
your project. This may or may not be
combined with the loan for construction
financing. A little more on this later.
Tips for securing an
interim lender

We expect that a lender for the interim
financing of your project be secured
through a Request for Proposal (RFP).
Your local loan officer maintains a list
of lenders that have expressed interest in
providing interim financing on projects

where Rural Development provides the
permanent financing. You can obtain
that list from your loan officer, but do
not limit your search to the lenders on
that list. You are encouraged to solicit
proposals from local lenders, including the bank(s) where you maintain
your accounts.
You should include the following in
your RFP:
* A brief description of the project,
including the estimated construction period and the amount of funds
you need. It is suggested that you
add six months to your estimated



Table of Contents for the Digital Edition of Streamline - Summer 2017

From the President: 2017 Legislative Efforts
From the Executive Director: Give Us Another Drum Roll Please…
2017 VRWA Conference Highlights
Locating Plastic Pipe
The Value of VRWA
Portable Ladder Safety
The Chesapeake Bay
These Boots Are Made For...What?
RUS-Funded Projects: New Requirements
SOPs: The First Step to Sustainable Utilities
Throwing My Loop: The Horse Trailer with the Broken Heart (Part Two)
VRWA Member Corner
eLearning Benefits
Membership Application
Benefits for VRWA Members
Board of Directors
VRWA Committees
Index to Advertisers/Ad.com
Streamline - Summer 2017 - Intro
Streamline - Summer 2017 - cover1
Streamline - Summer 2017 - cover2
Streamline - Summer 2017 - 3
Streamline - Summer 2017 - 4
Streamline - Summer 2017 - 5
Streamline - Summer 2017 - 6
Streamline - Summer 2017 - 7
Streamline - Summer 2017 - 8
Streamline - Summer 2017 - From the President: 2017 Legislative Efforts
Streamline - Summer 2017 - 10
Streamline - Summer 2017 - From the Executive Director: Give Us Another Drum Roll Please…
Streamline - Summer 2017 - 2017 VRWA Conference Highlights
Streamline - Summer 2017 - 13
Streamline - Summer 2017 - 14
Streamline - Summer 2017 - 15
Streamline - Summer 2017 - 16
Streamline - Summer 2017 - 17
Streamline - Summer 2017 - 18
Streamline - Summer 2017 - 19
Streamline - Summer 2017 - 20
Streamline - Summer 2017 - 21
Streamline - Summer 2017 - Locating Plastic Pipe
Streamline - Summer 2017 - 23
Streamline - Summer 2017 - 24
Streamline - Summer 2017 - The Value of VRWA
Streamline - Summer 2017 - Portable Ladder Safety
Streamline - Summer 2017 - The Chesapeake Bay
Streamline - Summer 2017 - These Boots Are Made For...What?
Streamline - Summer 2017 - 29
Streamline - Summer 2017 - RUS-Funded Projects: New Requirements
Streamline - Summer 2017 - 31
Streamline - Summer 2017 - SOPs: The First Step to Sustainable Utilities
Streamline - Summer 2017 - 33
Streamline - Summer 2017 - 34
Streamline - Summer 2017 - Throwing My Loop: The Horse Trailer with the Broken Heart (Part Two)
Streamline - Summer 2017 - 36
Streamline - Summer 2017 - VRWA Member Corner
Streamline - Summer 2017 - 38
Streamline - Summer 2017 - eLearning Benefits
Streamline - Summer 2017 - Membership Application
Streamline - Summer 2017 - Benefits for VRWA Members
Streamline - Summer 2017 - 42
Streamline - Summer 2017 - VRWA Committees
Streamline - Summer 2017 - 44
Streamline - Summer 2017 - Index to Advertisers/Ad.com
Streamline - Summer 2017 - 46
Streamline - Summer 2017 - cover3
Streamline - Summer 2017 - cover4
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