About INTERCAP Loans
♦ The INTERCAP program only loans funds to eligible government units as defined under 17-5-1604, MCA.
♦ The INTERCAP program is a variable rate loan program.
♦ Interest rates are adjusted on February 16th of each year.
♦ 100% financing is available with no up-front cost, equity, or matching funds required.
♦ Interest and principal payments are due semi-annually on February 15th and August 15th.
♦ Current interest rate through February 15, 2016 is 1.25%.
♦ Loan requests in excess of $1,000,000 must receive Loan Committee approval.
♦ Loan requests in excess of $5,000,000 must receive Board approval.
♦ Use of loan funds has significant flexibility, e.g. new and used equipment and vehicles, real property improvements, cash flow, preliminary engineering costs, grant writing.
♦ Prepayments are allowed without any prepayment penalty.
♦ Maximum loan limit is established by eligible government unit’s legal debt limit.
♦ Maximum term of the loan is 15 years* or useful life of the project, whichever is less.