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Kentucky Rural Water Finance Corporation Flexible Term Finance Program
Finance your next project with tax-exempt loans through the Kentucky Rural Water Finance Corporation!
The Kentucky Rural Water Finance Corporation, in conjunction with Kirkpatrick Pettis, is now offering the Flexible Term Finance Program.  This program will provide financing for a variety of projects with loan terms from one to twenty-five years.

The KRWFC was created by the Kentucky Rural Water Association (KRWA) for the purpose of assisting communities in obtaining competitive financing for construction projects.  The program offers a financing mechanism that allows communities access to tax-exempt bond funds with a reduced cost of issuance.  The program has similarities to that of a traditional bond issue; however, it also has the efficiencies of a pooled structure. The KRWFC serves as the program administrator.

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     Specifics:
  • Low tax-exempt interest rates (fixed rate depending on current market conditions.)
  • Short-term and long-term finance structures - 1 to 25 years depending on the project
  • Fixed or Variable Rate Options
  • The program carries a long-term bond rating of "AA-" from Standard & Poor's regardless of borrower's credit rating
  • No cross liability for individual borrowers
  • No minimum customer base required
  • Debt Coverage Requirement of 1.20x - similar to USDA Rural Development
  • Bonds secured by revenues of the system or general obligations of the community
  • Tax-exempt bonds may be used in conjunction with other funding sources
  • Costs of issuance approximately 3%
  • Refundings of existing debt and leases permitted