The following terms apply to loans from the WDA to Local Governmental Agencies (LGAs) for financing of wastewater and water systems:

• The LGA must have received a letter from the West Virginia Infrastructure and Jobs Development Council recommending the WDA as a source of loan funding for the project.
• The interest rate is determined when the WDA markets its bonds.
• The LGA may choose loan terms ranging from 10 to 40 years.
• Loans are made on a first-come basis.
• No maximum or minimum limit is placed on the amount to be borrowed.
• The borrower is required to issue a revenue bond to secure the loan.
• Debt service coverage required is 115%, unless the LGA elects to prefund a debt service reserve equivalent to one year's debt service, in which case coverage can be reduced to 110%.
• In some circumstances, a WDA loan may be used for refinancing existing debt in conjunction with the financing of a new project.