State of Ohio
PUBLIC WORKS COMMISSION
Loan Program Guidelines

Loan Applications

OPWC, in conjunction with each of the 19 District Public Works Integrating Committees, awards loans to finance eligible infrastructure needs as part of each grant/loan funding cycle. Application guidelines are the same as with an OPWC grant, with the following exceptions:

  • The loan can be for up to 100% of the project costs.
  • The Chief Financial Officer will need to provide a letter indicating how the loan will be repaid. See CFO Loan Repayment Letter sample in application instructions.
  • The district establishes the term but usually it is 0%.
  • The life of the loan cannot exceed the lesser of 30 years or the weighted useful life of the infrastructure.

As loans are repaid, funds are allocated back to the originating District Integrating Committee.

State Capital Improvements Program (SCIP) Loans

OPWC in conjunction with each of the nineteen District Public Works Integrating Committees, awards a minimum of 15% of the districts’ annual allocation of SCIP funds to loans, and loan assistance/credit enhancement to finance eligible infrastructure needs.

Application guidelines are the same as with an OPWC grant, with the following exceptions:

  • The loan can be for up to 100% of the project costs.
  • The Chief Financial Officer will need to provide a letter indicating how the loan will be repaid. See CFO Loan Repayment Letter sample in application instructions.
Revolving Loan Program (RLP)

Loans made under the State Capital Improvements Program, as they are repaid, produce funds for the Revolving Loan Program (RLP). Loan repayments vary from year to year and from district to district, depending on the loan term, the amount of loans actually issued under SCIP, actual closure dates and timeliness of payments. Due to these variables, allocations provided under the RLP will be inconsistent from program year to program year. Loan allocations will be provided each program year based on the actual cash received from loan recipients within each district. Loan Repayments (principal and interest) will be allocated back to the originating District Integrating Committee. Districts will select and submit RLP projects as part of their normal Program Year process..

Application guidelines are the same as with an OPWC grant, with the following exceptions:

  • The loan can be for up to 100% of the project costs.
  • RLPs are not subject to the 20% new and expansion limitations.
  • The Chief Financial Officer will need to provide a letter indicating how the loan will be repaid. See CFO Loan Repayment Letter sample in application instructions.
Dollar Limit:

No limits

Term:

Terms range from one to thirty years. The term of the loan cannot exceed the useful life of the project. The minimum useful life must be seven years or greater.

Interest Rate:

Each district will recommend the rate of interest for a loan. Interest rates will be 0% to 3%.

Promissory Note:

Project loans are approved by the District Integrating Committees. A loan repayment letter is required as part of the application process and mailed to the OPWC for processing. This process is considered the local certification of funds and is also where the applicant and the OPWC agree upon the loan term and interest rate. Once the application has been reviewed and approved a Promissory Note is established stating the terms of the loan. The Promissory Note is included with the CFO project financial letter. The Promissory Note must be signed by the CFO listed in the project agreement. The original is not required; therefore, make only one transmittal to the Loan Officer by email, fax, or US mail.

Loan Process:

When the project is awarded funding the OPWC will send out a Promissory Note to the CFO of record outlining the terms of the loan agreement. The CFO of record must sign the Promissory Note and send it to the Loan Officer via email, fax or U.S. mail. Information regarding individual loans can be found here     until time of closeout when actual amounts used will be reported. No further action is needed on the loan until time of closeout.

When the project is completed and an Appendix E has been submitted to the Program Representative stating that the project is complete and no more disbursements will be requested, the Loan Officer will then use the final dollar amount used on the loan to generate a complete and final amortization schedule.

An amortization schedule and letter will be mailed to the CFO on the project showing the first date of payment, the biannual payments, and when the loan will be paid in full. At this time, the loan is officially in "billing" and the OPWC will generate invoices to send out biannually to the subdivision.

Loan Invoices and Repayment:

Repayment of a loan begins after the project is closed. At that time a final amortization schedule will be mailed to the Chief Financial Officer of record. The first payment will be due on the last business day of January or July 1st, whichever is closest to the date of closeout. (Please note that the Amortization Schedules state “January 1st”.) Payments will then be made every January and July thereafter. The OPWC will mail postcards to the Chief Financial Officer approximately 45 days prior to the payment due date alerting them that invoices are posted to our website. If loan payments are not received within 30 days of the due date the OPWC may apply late fees, which are accrued at a rate of 8% per annum. Any loans more than 60 days late will be turned over to the Attorney General’s office for collection. As provided in law, the OPWC may require that such payment be taken from the local subdivision’s share of the County Undivided Local Government Fund.

Prepayment Options and Types of Payments Accepted:

Loans may be paid in full during any billing cycle without penalty. Loan repayments are made from the local government directly to the OPWC. The OPWC does not accept wire transfers/EFT or lock box payments. Payment will only be accepted for the invoiced amount due or for the total balance of the project. Payments received with amounts other than that will be returned to the local government for correction. If you have several loans in repayment, you may put all the repayments onto one check as long as the loan numbers are listed on the check or the invoices are attached for confirmation.

Amortization Schedules:

We no longer provide initial amortization schedules, however, all loan information is contained on our web site on the Financial Tab under "Loans"  . The loan spreadsheet is entitled "OPWC Project Loan Information"  . Once your loan is put into billing an amortization schedule will be posted to the same web site, with a copy mailed to you the month following project closeout.

Loan Program Conditions for use with Grant Funding:

Districts must first use loan allocations provided under the State Capital Improvements Program (SCIP), before they draw funds from the Revolving Loan Program (RLP). Districts with significant loan balances under the SCIP or RLP will be requested to submit additional applications.

Grant/Loan combinations for the same project:

  • SCIP grant with either a SCIP or RLP loan will be allowed.
  • No Grant/Loan/Loan combinations. (a SCIP grant, a SCIP loan and an RLP loan for the same project)
  • SCIP loan funds may not be used as match for projects approved under the Local Transportation Improvement Program (LTIP).
For repair/replacement projects with Grant/Loan funding 90% and over:

Participation above 90% will be drawn from the loan funds as payments progress to ensure that the local share is met according to State statute.

For New/Expansion projects with Grant/Loan funding 50% and over:

Participation above 50% will be drawn from the loan funds as payments progress to ensure that the local share is met according to State statute.