The loan process has several steps before loans are submitted to the board for approval.
- Contact the Loan Program team to discuss the project.
- If the project falls under the guidelines, the team asks you to complete a loan form and submit it with the required documents.
- The team reviews your application and verifies your assets for securing the loan.
- The team calculates estimated cost assessments to the borrower at different terms.
- The team presents this information in a memo to the Board at their meeting.
- The board reviews the application and either approves or denies the application.
The loan term can range from 5 to 60 years. Currently, the average loan term is 10 to 15 years.
The board sets the interest rate at their first meeting each year. Generally, they set two rates: one for irrigation-related projects and one for municipal water systems.
Current Loan Rate: 3.5%
Yes, we recommended that the applicant or a representative attend the board meeting during the loan application review. Doing so aids the Board should they have any questions which fall outside the scope of the Loan Program team’s memo to the Board.
You can download the application as well as related guidelines and worksheets from the Forms page.
You are not required to use all funds appropriated for the loan. Funds that are not used remain in the revolving loan account. However, loan repayment is based on the funds appropriated.
The minimum amount is $5,000. With changes enacted by the 2007 legislature, there is no longer a maximum cap for loans.
According to Idaho Code § 42-1756, each loan must be repaid upon completion of the project. If one project is completed before the other, repayment for the completed project begins no later than one year from date of completion.
In the event that your project runs over budget and additional funds are required, the Board can authorize a loan increase. You must complete an additional application and follow the same funding process. Upon approval, the Board amends and restructures the original loan.
You are responsible to repay the loan’s principle and accrued interest according to the repayment agreement. If you choose to repay the loan earlier than agreed, there is no “early payoff” penalty.
