FLOOD06506

• County: Statewide
• Community: State of Colorado
• Stream Name: All
• Basin: Statewide
• Title: Water Project Construction Loan Program Guidelines for Financial Assistance
• Date: 8/1/1994
• Prepared For: State of Colorado
• Prepared By: CWCB
• Floodplain - Doc Type: Educational/Technical/Reference Information

1.3.2 Lending Policy

The Board's ConstrUction Fund lending policy is outlined in the fonowing paragraphs.
The lending policy is reviewed by the Board in March of each year.

a. The total amount of CWCB loans for any single project is generally limited to a
maximum of 75-percent of the total engineering and construction cost of the
project.

b. The CWCB may loan a maximuln of 50-percent of the cost of a feasibility study
for a water project. The Board'~ participation in feasibility study costs must be
repaid whether a project is constructed or not. Repayment for a feasibility study
loan may be incorporated in repayment for a design and constrUction loan.

c. The CWCB loan for any project must be repaid to the Construction Fund under
repayment terms to be established by the Board. Subject to annual review and
revision in March of each year, the following shall be the "standard" terms and
conditions of CWCB ConstrUcti(Jfi Fund loans:

(1)

Loan term:

30 years

(2)

Loan interest rate:

fixed at the then current 30-year Treasury
Bond rate less 200 basis points (2-percent)

A slightly lower interest rate may be available for a shorter repayment period
based upon an analysis of the Treasury Bond yield curve.

d. Deviations from the standard tenns will be based on staff and Board review of the
benefits of the project to the State coupled with the financial capacity of the
project sponsors. Deviation from standard loan terms may require additional
documentation of financial need.

e. The project sponsor must provide adequate security to guarantee repayment of the
loan. The security may be:

. title to project property equal in value to the loan;
. a pledge of revenues or taxes; or
. bonds, notes or other securities.

f. Preference for funding will be given to those projects which are most cost
effective, which demonstrate the greatest need for assistance in financing, and
which best relate to the Board's Long Range Plan.

g. In general, ConstrUction Fund loans will be utilized to supplement those funds
which could be made available to the project sponsor from other sources.

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