Frequently Asked Questions

How do I apply for financing?
Obtain and submit an application for financing to the finance program coordinator.

What types of projects qualify to be financed through the MMUA Finance program?
Electric, gas, water, wastewater and other related utility projects can be funded by the program. Please consult the finance program coordinator for details on your project.

What financing terms are available?
The MMUA Finance Program can accept projects with terms as little as a year up to a maximum of 30 years depending on the economic life of the project being financed.

What is the minimum loan size?
The minimum loan size is $100,000

Is there a maximum loan size?
No. In fact, your savings will increase with the size of your loan.

How long does it take to close on a loan through the MMUA Finance Program?
Depending on the local city and utility needs, applications are processed as-needed in respect to the timing of the project.

What are your current rates?
Fixed or variable rate financing is available. The finance program coordinator can provide you with current rate information.

Am I responsible if any pool participant defaults on their debt?
No. Each borrower is treated separately by an individual line of credit and is in no way responsible for the debt service of another borrower.

Can localities with strong credit benefit from this program?
Absolutely. Each borrower's credit is rated individually, with the bond rating reflecting the letter of credit from our credit provider, which received an "AA-/A-1+".

Can I be reimbursed for project expenses that incur before the loan closing?
Yes, a reimbursement resolution will have to be passed prior to project expenses being incurred.

Do I need to fund a debt service reserve fund?
The MMUA Finance Program has its own reserve fund, so you do not need to fund a reserve, unless one is required by your previous parity debt.