Flexible Term Loan

Finance your next project with tax-exempt loans through the Kentucky Rural Water Finance Corporation. For more information, please view either our Flexible Term Financing Application or Flexible Term Financing General Obligation Application.

The Kentucky Rural Water Finance Corporation (KRWFC), in conjunction with Raymond James and Rubin & Hays, introduced the Flexible-Term Finance Program in 2001.

The Program provides financing for a variety of projects with loan terms up to thirty-five years. The program aims to make the process of obtaining funds less complicated than its alternatives and to have funds available as quickly as possible.

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 to access 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.

History of the Program

Since the program’s inception, KRWFC has successfully closed 211 loans through the Flexible Term Finance Program and has issued over $339 Million Dollars.


  • Low tax-exempt interest rates
  • Funds can be available in as little as 35 days
  • Short-term and long-term finance structures – 1 to 35 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
  • 2-day Loan Approval Process
  • No cross liability for individual borrowers
  • No minimum customer base required
  • 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
  • Customer Rate analysis provided by the finance team