(OLYMPIA)– The state Department of Ecology has made a limited change to the State Revolving Fund to apply an administration charge for loans that would not be passed along to loan customers.
The Revolving Fund is a long-standing, successful program that provides low-interest loans to local governments, tribes and special purpose districts for water quality improvement projects across the state. These projects range from large wastewater treatment plant construction projects to small projects, such as planting vegetation along streams, to prevent diffuse sources of pollution.
The proposed change, approved by the state Legislature, keeps the State Revolving Fund financially sound and functioning into the future.
Ecology will assess an administration charge on each Revolving Fund loan at the point the loan enters into repayment. The charge cannot exceed one percent of the declining loan balance and may not be applied to loans with an interest rate below the administration charge. The charge will be subtracted from the established interest rate for the loan, therefore it will have no impact on borrowers.
Ecology held a public hearing and a public comment period in making the change. Learn more online. The change becomes effective Dec. 21.