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How long is the loan term and when does repayment begin?

April 26, 2017loan repayment term

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How long is the loan term and when does repayment begin?

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The LGAs may choose a loan term ranging from no fewer than 20 years to no more than 40 years. Interest accrues immediately after the loan closing, and interest payments are made semi-annually to the WDA. LGAs are permitted to capitalize the interest on the loans during the construction period plus six months. Principal payments are made annually after completion of construction. LGAs make monthly payments of principal and interest to the West Virginia Municipal Bond Commission (MBC), which is the State sinking fund for the LGAs. The MBC makes semi-annual payments to the WDA.