The LPFA's Rural Development Low Interest Loan Program helps provide local governments and non-profits with interim financing for capital and infrastructure projects until permanent financing is
received from the U.S. Department of Agriculture's (USDA) Rural Development Program. The
borrower works with its local bank to obtain the most favorable interest rate possible and borrows 60% of the necessary funds from the local bank at the negotiated interest rate. The LPFA provides the remaining 40% of the loan at an interest rate equal to one-half of the local bank’s interest rate. Thus, the borrower saves a substantial amount in interest costs by participating in the Program.
Since its inception, the Program has saved borrowers more than $800,000 in future interest costs.