Change in Revolving Fund Loan Structure to Save Montanans Over $29 Million
Governor Steve Bullock announced today, Friday June 13, that the state of Montana would save over $29 Million because of changes in the State’s Revolving Fund Loan Program. Bullock’s Communication’s Director Dave Parker explains the changes.
"The changes are, first of all, a reduction in the long term interest rates from 3% to 2.5%,"Parker said." Second, a reduction in the amount of required reserves to service the loan, and third, a reduction of debt service coverage from 125% to 110%."
It appears as if Montana's fiscal policies are paying off.
"It's important to note that many states aren't able to do this," Parker said. "The reason Montana can do it is because of our sterling bond rating and the fiscal management that we've shown as a state allows us to access these sorts of rates and do this."
The reduced interest rate will have a big impact in cities and towns with large loans that went to improve drinking water or sewage systems. For example, Big Fork alone will save nearly 700,000 dollars.