The following terms apply to loans from the WDA to Local Governmental Agencies (LGAs) for financing of wastewater and water systems:
- The LGA must have received a letter from the West Virginia Infrastructure and Jobs Development Council recommending the WDA as a source of loan funding for the project.
- The interest rate is determined when the WDA markets its bonds.
- The LGA may choose loan terms ranging from 10 to 40 years.
- Loans are made on a first-come basis.
- No maximum or minimum limit is placed on the amount to be borrowed.
- The borrower is required to issue a revenue bond to secure the loan.
- Debt service coverage required is 115%, unless the LGA elects to prefund a debt service reserve equivalent to one year's debt service, in which case coverage can be reduced to 110%.
- In some circumstances, a WDA loan may be used for refinancing existing debt in conjunction with the financing of a new project.