 |
The local lender originates loans for projects with a water quality benefit.
The Division of Soil Conservation and Water Quality (DSCWQ) or the Department of Natural
Resources (DNR) approves the project,depending on the program from
which it is applying for funds.
|
|
The lender uses normal underwriting criteria and loan documents. |
|
The interest rate charged to the borrower will not exceed 3 percent. |
|
The project is constructed, inspected and approved. |
|
IFA deposits funds equal to the principal amount of the loan at 0 percent interest. |
|
The deposit does not guarantee the loan nor is it collateral for the loan.
The deposit is only to reduce the interest rate charged to the borrower.
|
|
Annually, IFA withdraws from its deposit account an amount equal to the
principal repayment of the outstanding loan. As a result, the amount in
the deposit account will equal the principal outstanding on the loan.
|
