State of Ohio
OPWC Loan Assistance / Credit Enhancement

Loan Assistance is a leveraging tool in which the OPWC will pay interest expenses on borrowed money during the construction period. Loan sources include private banks, the Ohio Water Development Authority, the Environmental Protection Agency, USDA Rural Development, and others. Note that the Ohio Water Development Authority will directly bill the OPWC.

Credit Enhancement is a one-time infusion of funds which enhances a subdivision’s ability to secure affordable debt. The OPWC may pay the premium for a bond insurance policy. This policy improves the subdivision’s credit or bond rating and, consequently, improves the interest rate on the General Obligation or Revenue Bonds to be issued.


For projects otherwise eligible for OPWC grants and or loans. If also applying for grant/loan for the same project the application for Loan Assistance / Credit Enhancement should be a separate application for administrative purposes.




Loan Assistance: Construction period interest going back one year prior to the date of the Project Agreement.

Credit Enhancement: Up to fully funding the cost of a standard private bond insurance policy that achieves an A or A+ rating on the associated bonds.


Disbursement of OPWC funds will be made directly to an authorized lending institution or as a reimbursement to the Recipient. In the case of bond insurance, transactions must be in harmony with the state’s own “tax exempt” bond issues and requirements for the use of proceeds for such bonds. Disbursement of OPWC funds shall occur at the time required for their actual use in the subdivision’s debt issuance. Any additional terms will be communicated to the subdivision at the time of approval.


Subdivisions must enact legislation authorizing the associated debt issuance prior to approval of OPWC assistance. For loans: An official loan closing or verification that a loan closing will occur within 90 days after OPWC approval and at which time all other funding sources must be guaranteed.

For Bond/Note Issues:

  • Compliance with Uniform Bond Law (ORC Chapter 133)
  • Favorable opinion from a nationally recognized bond counsel
  • Anticipated revenues must be sufficient to fully retire debt
  • Bond Issue, together with other fully committed resources, must be of sufficient amount to ensure project completion

As may be requested, the subdivision shall provide a copy of the most recent applicable audit report and/or documentation of adequate management capacity for the associated infrastructure system.


An application for loan assistance or credit enhancement can not be combined with an application for a grant and/or loan due to administrative issues. There is a separate category for loan assistance / credit enhancement listed on the first page of the application under “Funding Type Requested”. Please contact your district liaison or program representative for assistance in completing your application.