Ohio Public Works Loan Program

Loan Applications

*Visit here to download infrastructure project application (same application for all infrastructure programs)

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 10% 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. Loans with a balance of $5,000 or less will have a pre-assigned one-year loan term.

Interest Rate: Each district will recommend the rate of interest for a loan. Interest rates will be 0% to 3%, but most are 0%.

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 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).

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. OPWC does allow loan recipients to pay over invoiced amount as long as it’s documented on the payment remittance sheet. This will allow the community to pay the loan off sooner, if desired. 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.

Download your individual Loan Reports HERE.

Need your Promissory Note? Download your unexecuted note HERE from the Project Agreement.

Visit HERE to download your local government's most recent loan invoice.

LOAN PROJECT INSTRUCTIONS FOR DECLARING OFFICIAL INTENT

Due to tax regulations issued by the Internal Revenue Service, the Ohio Public Works Commission must follow guidelines relating to the disbursement of funds to local subdivisions who have received a loan. These regulations apply only when we are reimbursing the local subdivision for construction-related Project costs already incurred, including in-kind and force account work (not engineering or right-of-way).

If the local government does not plan to seek reimbursement for construction costs (meaning the Commission will pay all contractors directly) these regulations do not affect you. If you are not seeking reimbursement, you only need to return the enclosed "Notification of Disbursement Method" to your Program Representative indicating this choice. NOTE: If you elect to change your selection you must resubmit the form with an adopted Declaration of Official Intent as described below. You may only resubmit if you are within 60 days of the start of construction (see item 2. below).

If the local government plans to seek reimbursement for any Project construction costs, a "Declaration of Official Intent" (i.e. Resolution) must be adopted. Enclosed is a sample Resolution. If you intend to seek reimbursement, you must return the enclosed "Notification of Disbursement Method" to your Program Representative indicating this choice AND your passed Resolution.

The Resolution will allow the Commission and local subdivision to comply with the federal regulations pertaining to the proceeds of tax exempt debt, the funding source for your loan. The "Official Intent" means that at the time the local subdivision makes a payment for construction-related Project costs from its own funds, the local subdivision intends to seek reimbursement for those costs from us. Please note the following:

1.     A Declaration of Official Intent is required only if the local subdivision is planning to seek reimbursement for Project costs already incurred and paid for by the local subdivision. Commission payments for in-kind and force account work is considered a reimbursement. If the local subdivision plans to have contractors paid directly, check the "will NOT seek reimbursement" box on the Notification of Disbursement Method form and return the form prior to starting work on the Project.

2.     If seeking reimbursement, the Declaration must be adopted no later than 60 days after the date of construction-related Project costs for which the local subdivision will seek reimbursement.

3.     Preliminary expenditures including engineering are not subject to the Resolution requirement.

4.     Reimbursement by the Commission must occur within 18 months after the latter of (A) the date the Project costs are paid by the local subdivision; or (B) the date the Project is placed in service or abandoned, but in no event more than three years after the Project costs are paid by the local subdivision.

5.     Not following these procedures may prevent us from disbursing funds for your Project.

6.     Complete the italicized sections on the Sample Resolution. A fillable pdf version is available HERE. Section 2 requires the estimated maximum amount you expect to receive from us in the form of a reimbursement. If you think your disbursement process will be a mixture of reimbursements to the subdivision and payments directly to contractors, then pass the Resolution for the entire loan amount. You are then covered regardless of the mix of reimbursements and direct payments during the life of the Project.

Please return your Notification of Disbursement Method and (if applicable) Resolution of Intent (ROI) to your Program Representative via email. Notification of Disbursement Method and ROI are found in the information mailed to the Chief Financial Officer on July 1st each year.

Resolution of Intent Template