SRF Interest Rates

A community’s interest rate will be based, in part, on their ATPI. Interest rates can vary from 40 percent of the interest rate reported to 100 percent of the interest rate reported on the 20-year, 25-year, and 30-year Bond Buyer Index and the Municipal Market Data General Obligation Yields published every Thursday. Communities that fall within the lower economic scale of the ATPI will be eligible for a lower interest rate.

The state has developed a tiered interest rate reduction methodology that corresponds to a community’s ATPI. The lower a community’s ATPI, the lower their community economic health, and greater need for financial assistance.

• Low range ATPI values between 0-20 have a 0.40 multiplier
  
• Marginal range ATPI values between 30 – 40 have a 0.60 multiplier
• Moderate range ATPI values between 50-60 have a 0.80 multiplier
• High range ATPI values of 70 or greater will receive the standard reported interest rates.

SRF interest rates are further stratified by the term of the loan. Once loan terms are established, the appropriate base interest rate is selected. The community ATPI is verified, then the multiplier corresponding to the ATPI is multiplied by the base interest rate to establish the SRF awarded interest rate.