Request for Proposal for Interim Financing
The County of Bland is soliciting financial institutions for interest in providing interim financing for as much as $1.5 million for construction of the Bland County Water System Improvements Project. Construction will begin in May of 2017 and the interim loan will be paid in full by USDA Rural Development after full completion of the project.
A Preliminary Engineering Report outlining the project details has been submitted and approved by the Virginia Department of Health. The recommended improvements outlined in the report include waterline replacement, zone meters, and upgrades to the existing Water Treatment Plant.
The County has accepted a funding package from USDA Rural Development that includes $1 million grant and $1.5 million in loan to provide long-term financing of the project. The USDA funding program requires the loan recipient to interim finance the loan portion of the funding package assuming they can obtain an offer that includes reasonable rates and terms. The interim financing will be used during the full term of the 18 month construction process and will need to allow for multiple advances with interest accruing on the advanced portion of the loan only. The advances will be pre-approved by USDA Rural Development.
The term of the interim financing will be 18 months with the full amount of the loan due at maturity. The interest rate will be fixed and a County selected bond council will prepare all documents associated with the financing. If the project is completed before the 18 month projected term and closing with USDA Rural Development is completed prior to the 18 month term, there will be no prepayment penalty assessed to the County.
All proposals are due no later than 1:00 p.m. on February 27, 2017 at the Bland County Courthouse, 612 Main Street, Suite 201, Bland, VA 24315. Proposals should be marked as Bland County Interim Financing RFP and include contact information, interest rate and all costs associated with the financing, a statement indicating that the offerer will legally support the information provided in the proposal, and all conditions associated with the closing of the loan.
The County reserves the right to request additional information from proposers and reserves the right to reject any or all proposals and waive any irregularity or informality. The selection process will be based on the lowest overall cost of the financing package.
The County of Bland is an equal opportunity provider and employer.