Overview
The Local Government Direct Loan Program provides a flexible mechanism for VRA to support infrastructure projects that would otherwise be inefficient to finance through other existing VRA programs. This includes interim for disaster recovery financing to replace eligible public infrastructure prior to state and/or federal reimbursement.
Examples of financings in the Direct Loan Program include small loans ($250,000-$750,000) with fixed rates and terms greater than 20 years, short-term financing in the form of bond anticipation notes (BANs), grant anticipation notes (GANs), or other interim funding prior to long-term funding through another VRA program.
VRA’s Board authorized the issuance of bonds, if needed, to further assist with disaster recovery funding for needs exceeding available funding in the Local Government Direct Loan Program.
Direct Loan Program Benefits
- Competitive interest rates
- Custom-tailored loan structures
- Straightforward process
- Loan terms up to 30 years (determined by the useful life of the project)
- No additional VRA fees
