The LPFA's Low Interest Local Government Bond Bank Program saves local governments money by providing up to 25% of a financing at a reduced interest rate. The local government works with its local bank to obtain the most favorable interest rate and borrows 75% of the necessary funds from the local bank at the negotiated interest rate. The LPFA provides the remaining 25% of the loan at an interest rate equal to one-half of the local bank’s interest rate. Thus, the local government saves a substantial amount in interest costs by participating in the Program. Since its inception, the Program has saved local governments more than $1.5 million in future interest.