Federal and State Loan Service
Ranson has also had experience working with other governmental agencies regarding loan services. Mr. Haas and Ms. Saunders each have had numerous projects that have been financed through programs provided by the United States Department of Agriculture (“USDA”) and the Kansas Department of Transportation (“KDOT”).
USDA Rural Development
WEP provides loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less. Public bodies, non-profit organizations and recognized Indian tribes may qualify for assistance.
WEP also makes grants to non-profit organizations to provide technical assistance and training to help rural communities with their water, wastewater and solid waste problems.
For more information visit www.rd.usda.gov
Kansas Department of Health and Environment (KDHE)
The Kansas Public Water Supply Loan Fund (KPWSLF) is a state revolving loan fund (SRF) program which provides financial assistance in the form of loans to Kansas municipalities, at below market interest rates, for construction of public water supply system infrastructure. Kansas Statues 65-163d through 163u establishing the Loan Fund were passed by the legislature and Kansas Administrative Regulations 28-15-50 through 28-15-65 were promulgated by KDHE.
The National Drinking Water State Revolving Fund (DWSRF) program, which was established by the Safe Drinking Water Act (SDWA) Amendments of 1996, authorizes the U.S. Environmental Protection Agency (EPA) to award capitalization grants to the States. The EPA capitalization grant for the KPWSLF is not loaned directly to municipalities. Instead, the grant is deposited into a reserve account, and pledged as security for repayment of state issued revenue bonds. Proceeds from the revenue bonds are loaned to the municipalities. The reserve account is invested, and the interest earnings are combined with the loan repayments from municipalities to buy down the loan’s interest rate. Municipalities are charged interest rates equal to 80% of the previous three months average of the Bond Buyer 20 General Obligation Index. Rates have averaged 4.08 % for the first 8 years of the program. The Loan Fund currently leverages at a ratio of four to one, that is four dollars can be borrowed for every dollar placed into the reserve fund.
Loan funds can be received by two distinct types of municipalities, cities and rural water districts (RWD). Rural water districts lack the general taxing powers of cities, and are perceived in credit markets as a greater financial risk. The Kansas Public Water Supply Loan Fund provides equal access and interest rates to both types of borrowers, but requires different pledges of security to receive a loan, which is discussed in the loan agreement section of this page.
Kansas Water Pollution Control Revolving Loan Fund is a state revolving loan fund (SRF) program which provides financial assistance in the form of loans to Kansas municipalities, at below market interest rates, for construction of public waste water infrastructure.