Iowa Administrative Code › Agency 265 - Iowa Finance Authority › Chapter 26 - Water Pollution Control Works and Drinking Water Facilities Financing › Rule 265-26.8 - Wpcsrf Nonpoint Source Set-aside Loan Programs

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Nonpoint source loan
			 assistance.
Loan assistance for nonpoint source projects shall be in
			 the form of low-interest loans or through linked deposits or loan
			 participations through participating lending institutions.
(2)
Application for loan
			 assistance.
Application for loan assistance may be made at any
			 participating lending institution or submitted to the authority or the
			 authority's agent, as applicable. A list of participating lending institutions
			 will be made available by the authority, financial agent or other entity that
			 the authority may use to administer this program. Application for loan
			 assistance shall be made on forms provided by the authority or its
			 agent.
(3)
Project
			 approval.
Each project must be approved by the appropriate
			 environmental or conservation agency as determined by the department.
(4)
Loan approval.
For
			 linked deposit programs, the participating lending institution shall, upon
			 receipt of a completed loan application form, either approve or deny the loan
			 in accordance with the program requirements. If the loan is approved, the
			 lending institution shall notify the authority or its agent in order to reserve
			 funds in that amount to ensure that funds are available at the time of
			 disbursement. If the loan is denied, the lending institution shall notify the
			 loan applicant, clearly stating the reasons for the loan denial. For
			 low-interest loans with the authority, the authority, or its agent, shall
			 notify the applicant of the loan approval or denial.
(5)
Availability of funds.
Before acting on a loan application, the lending institution shall ensure that
			 adequate funds are available for the project and that the completed project has
			 been inspected and approved by the appropriate environmental or conservation
			 agency as determined by the department.
(6)
Property transfer.
In
			 the event of property transfer from the applicant to another person or entity
			 during the repayment period specified in the loan agreement, the balance of the
			 loan shall be immediately due in full.
(7)
Loan amount and period.
All loans shall be made contingent on the availability of funds in the
			 applicable fund or set-aside program as indicated in the IUP. The minimum and
			 maximum loan amounts that will be considered are dependent on project type and
			 are set forth as follows:
Type of Project
Type of Assistance
Minimum Loan Amount
Maximum Outstanding Balance
Maximum Loan Term
Project Approval Agency
General Nonpoint Source
Low-interest loans, Linked deposit or Loan
						  participations
$5,000
No maximum
20 years
DNR
Local Water Protection
Linked deposit
$5,000
$500,000 per common ownership
10 years
Division of Soil Conservation
Livestock Water Quality Facilities
Linked deposit
$10,000
$500,000 per common ownership
15 years*
Division of Soil Conservation
Onsite Wastewater Systems Assistance
Linked deposit
$2,000
No maximum
10 years
County
*If the loan is made only for preparation of a comprehensive
				nutrient management plan, the loan period shall not exceed 5 years.
(8)
Prepayment.
For direct loans, prepayment of the loan principal in whole or in part shall be
			 allowed without penalty.
(9)
Loan adjustments.
If the
			 eligible costs exceed the loan amount, the recipient may request an increase in
			 the loan amount. The lending institution is authorized to execute a loan for a
			 principal amount of up to 10 percent above the amount of the loan application
			 if the eligible costs exceed the application amount. To determine the
			 appropriate action, the authority will evaluate the request by considering
			 available moneys in the fund as well as the financial risk. Should the eligible
			 costs be less than the loan amount, the loan shall be appropriately
			 adjusted.
(10)
Disbursement
			 of funds.
Funds shall be disbursed in accordance with the loan
			 agreement. The loan agreement may allow for periodic disbursement of
			 funds.