Arkansas Rural Water Association
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Interim Loan Program

The purpose of the program is to provide construction funding for water and sewer systems that have received a permanent loan commitment from the United States Department of Agriculture-Rural Development (“RD”) (formally known as the Farmers Home Administration). The program structure provides communities access to short-term loan funds at favorable interest rates. Loan proceeds are utilized for the construction period only and are repaid with RD bond funds when the project is complete. RD will provide the permanent financing once the construction phase is complete and project conditions have been met.

Rural Water Financing Agency The program is designed as a tax-exempt pooled financing with flexible loan terms. The administrator of the program is the Arkansas Rural Water Association and the issuer Rural Water Financing Agency (the “Agency”).  The effective rate of borrowing under the program is based on a stated loan rate less an interest earnings credit on undisbursed construction proceeds.

History of the Program

Since the program’s inception in 1995, the Agency has made over $1.6 billion in loans to finance utility projects.

 

Loan Approval Process

  1. Completed application, Rural Development Letter of Conditions, and most recent audit are submitted to the Agency for preliminary approval.
  2. The Agency will issue a conditional approval letter to the Borrower pending completion of the loan package.
  3. The Borrower formally adopts and executes all legal documents associated with the loan package.
  4. The Agency funds its loan to the Borrower and construction disbursements may commence. All loan interest is capitalized within the loan amount.
  5. The Borrower requests funds from Regions Bank (Trustee). The RD, Engineer and Borrower must sign and approve each request for funds. No invoices are required. Construction funds are wired to the Borrower’s local construction depository for actual disbursement.
  6. Upon project completion, payoff is made to Regions Bank with RD bond funds. The payoff equals construction draws plus interest accrued during construction less interest earned.
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Next Training/Events

May
28
Wed
all-day Scholarship Golf Tournament | Ma... @ Hurricane Creek Golf Course
Scholarship Golf Tournament | Ma... @ Hurricane Creek Golf Course
May 28 all-day
Click Here for Information & Registration
May
29
Thu
all-day Treatment & Distribution Exam Re... @ ARWA Training Center
Treatment & Distribution Exam Re... @ ARWA Training Center
May 29 all-day
*NO TRAINING HOURS GIVEN*
Jun
3
Tue
all-day Henard Utility Products Badger M... @ ARWA Training Center
Henard Utility Products Badger M... @ ARWA Training Center
Jun 3 all-day
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Jun
9
Mon
all-day Class III Wastewater | June 9-13... @ ARWA Training Center
Class III Wastewater | June 9-13... @ ARWA Training Center
Jun 9 – Jun 13 all-day
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Jun
10
Tue
all-day Advanced Water Treatment | June ... @ Clarksville Light & Operations Center
Advanced Water Treatment | June ... @ Clarksville Light & Operations Center
Jun 10 – Jun 12 all-day
Download Training Agenda
View Calendar

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ARWA Headquarters

240 Dee Dee Lane
Lonoke, AR 72086-8156
Tel: (501) 676-2255
Fax: (501) 676-2266

Mailing Address
P.O. Box 860
Lonoke, AR 72086

Email: info@arwa.net

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