The Interim Gold Mine
There’s a gold mine out there just
waiting to be tapped. As water systems seek to expand
and upgrade utilizing Rural Development funds, many of
National Rural Water Association’s State Affiliates are
at the forefront.
Through gap financing, water and
wastewater systems are able to get the ball rolling in a
fast and effective manner.
For example, Missouri Rural Water
Association through the Missouri Public Utilities
Commission provides interim financing during the
construction phase of loans and grants funded by the
United States Department of Agriculture-Rural
Development. With the endorsement of Rural Development,
this innovative program provides communities’ access to
short-term funds at favorable interest rates for RD
projects.
Mirroring last year’s success, MRWA
is in the process of issuing bonds in excess of $25
million for this year’s interim financing program. As
the only gap financing source of its kind in the entire
state, MRWA is leading the way in making life easier for
its small and rural water systems.
Sue Campbell, MRWA Executive
Director, stated, “Our interim financing is a win-win
program. Immediate money gets the system’s project off
the ground and the overall program is an excellent
benefit to MRWA members.”
“Missouri’s water projects are
typical to the industry ranging from water towers to the
development of new systems. As projects payoff, the
money is recycled and loaned out again. Since gap
financings inception five years ago, Rural Development
has been very supportive providing for an excellent
working arrangement,” Campbell said.
The majority of NRWA’s state
affiliates offer some form of gap financing. Along with
other resources (management, training, security, etc.),
state associations are the heartbeat of a 1 Stop / Full
Service concept geared to making life simpler and more
productive for small utilities.
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Press
Release October
1, 2003