ILLINOIS RURAL BOND BANK

By LIEUTENANT GOVERNOR BOB KUSTRA

The Illinois Rural Bond Bank, in cooperation with the Department of Commerce and Community Affairs, created the Affordable Financing of Public Infrastructure (AFPI) program in 1994 to help communities finance their basic infrastructure needs. Fixed-rate loans, up to $100,000 and starting as low as 3.0% for three years, are available through the AFPI program for health, safety and economic development projects. In addition to the below market interest rate, the application and funding process is quicker, less burdensome and more cost effective than conventional bond financing.

The Bond Bank has funded 17 projects to the tune of $1,083,400 through the AFPI program. Several of the communities include:

• the City of Yorkville, located in Kendall County, borrowed $100,000 to make road improvements required at the entrance of a business development;

• the City of Assumption, located in Christian County, borrowed $100,000 to construct a new water tower to support a business expansion; and

• the Village of Carterville, located in Williamson County, borrowed $100,000 for extension of sewerage services to 55 residential units.

Currently, the maximum term for an AFPI loan is three years. Recently, however, legislation was signed into law extending the term to ten years. The following terms and rates are expected to take effect on or about November 15, 1995: loans maturing within (a) 1 to 3 years at 3.0%, (b) 4 to 6 years at 4.5%, and (c) 7 to 10 years at 5.6%. The interest rate is fixed for the life of the loan.

For more information and an application for an Affordable Financing of Public Infrastructure loan, please call the Bond Bank at 217-524-2663.

Page 24 / Illinois Municipal Review / November 1995