Repayment Terms: Up to 40 years for both direct and guaranteed loans based on applicant's authority and life expectancy of the system.
Applicants with MHI in excess of $47,799 do not qualify for grant assistance. Grant funds cannot be used to pay project costs related to interest, refinancing, purchase of existing systems, and initial operations and maintenance. Eligibility of an applicant can be determined by filing an application package with the appropriate Rural Development Area Office. Eligible applicants will be invited to file a formal application subject to the availability of funds. Personnel will directly assist the applicant in the preparation of the loan/grant docket. After eligibility is determined but prior to the development of the loan/grant docket, we must be able to satisfactorily-- Review and approve the Preliminary Engineering Report 1. 2.Review and approve the Engineering Agreement Review the environmental report and assess impact of the project on the human environment to include the applicant's required advertisements and notifications to interested parties. 3. Any other item that is related to the above three items or is pertinent in being able to determine project feasibility. 4. Application must be made on-line at RD Apply: https://rdapply.sc.egov.usda.gov/Intake/spring/ AppHomeFlow?execution=e1s1 The Area Office staff will be glad to discuss services available from Rural Development and explain the application process.
Security--Guaranteed & Direct Loans:
Public Bodies - Revenue Bonds, General Obligation Bonds, Special Assessment Bonds. Non-Profit Corporations - Promissory Notes, Real Estate Mortgages, Financing Statements, Security Agreements. Security instruments for guaranteed loans must be taxable issues. Solid Waste projects - The type of security required will be based on State law and what is determined adequate to protect the interest of the United States during the repayment period of the loan.
Maximum Amounts:
Direct Loans - May be obtained for 100 percent of eligible project costs subject to adequate security, ability to repay, applicant's authority to borrow, and availability of funds. Guaranteed Loans - Same as for direct loans as determined by private lender and approved by Rural Development. However, the Rural Development guarantee cannot exceed 90 percent of the loan and the Agency normally prefers that it not exceed 80 percent.
Grants:
Grants cannot be received in conjunction with a guaranteed loan. Grants are used to supplement direct loans for the purpose of reducing user rate costs to a reasonable level when compared to comparable systems and similar economic and income conditions.
Georgia has Area Offices in: Cartersville 678-719-3508 Monroe 770-267-1413 Fort Valley 478-827-0016 Sandersville 478-552-0901 Tifton 229-382-0273 Statesboro 912-871-2620 Georgia State Office 706-546-2171
Maximum Grants:
Up to 75 percent of eligible project costs for applicants who are eligible for the Poverty Interest Rate as described on page 1 of this fact sheet. Up to 45 percent of eligible project costs for applicants who do not qualify for the 75 percent category and their MHI is not greater than the non- metropolitan MHI of Georgia ($47,799).
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