Electric Municipal Loans

Purpose: Electric Municipal Loans provide financing to upgrade, expand, maintain, and replace distribution, subtransmission and headquarters (service & warehouse) facilities that serve customers in rural areas.

Eligibility: Click Forms 3030 and 3031 for restrictions related to convicted felons and tax delinquent corporations. Retail providers for all facilities; power supply providers for subtransmission and headquarters facilities. Entities eligible for electric loans include corporations, states, territories, and subdivisions and agencies thereof, municipalities, people's utility districts, and cooperative, non-profit, limited-dividend or mutual associations that provide retail or power supply service needs in rural areas.

Interest Rate: Interest rates will be established quarterly by RUS based on interest rates available in the municipal bond market for similar maturities and is determined at the time of the advance.

Supplemental Financing Required: Yes (generally 30%) except in the case of financial hardship as determined by the RUS Administrator and the first loan following a merger or consolidation.

Loan Terms: Term of loan not to exceed useful life of the facilities being financed, with a maximum term of 35 years. Power supply borrowers' loan term is also based on the term of its wholesale power contracts.

Basic Instruction: Specific language on loan eligibility and terms can be found in 7 CFR Part 1714. Loan policies and application procedures can be found in 7 CFR Part 1710.

Additional information about the electric loan programs and advice on completing and assembling an application are available from the national office. The Electric Program is divided in two regional divisions: Northern Regional Division, (202) 720-1420; Southern Regional Division, (202) 720-0848. Power supply borrowers should contact the Power Supply Division, (202) 720-1439.