Local Government

Construction Loan
Interim Financing Program

The Illinois Finance Authority provides very low-cost, short-term financing for local units of government that have received a permanent loan commitment from the United States Department of Agriculture-Rural Development for water or wastewater treatment projects.

Units of government working with USDA-RD are required to seek interim financing for their federal loans. IFA works, in concert, with USDA-RD to assist these borrowers. The Construction Loan Interim Financing Program provides units of local government the access to funds during the critical first stages of construction of their water or wastewater systems. The process for interim financing is simplified, because the loans are secured by the USDA-RD commitment to the borrower.

As Illinois communities continue to expand and grow, so do their needs for advanced systems and facilities to ensure the health and safety of their residents. Water and sewer improvements, school construction projects, road work and park improvements are just a few areas where funds may be needed. Many units of local government do not have the necessary financial resources to implement these important projects.

Working with IFA can help units of local government overcome the barriers to financing. Access to capital, reduced interest rates, and lower financing costs combine to make the IFA an attractive borrowing alternative for local governments throughout the state.