CoBank

The advantage is yours!

California Rural Water Association has partnered with CoBank, a national cooperative bank that serves vital industries across rural America, to provide attractive financing solutions for CRWA members.

Find out about the specially negotiated terms on many financing products for water and wastewater utilities, including:

• LINES OF CREDIT
• REFINANCING
• TERM FINANCING
• BRIDGE/GAP FINANCING
• USDA GUARANTEED LOANS AND BONDS
• USDA INTERIM CONSTRUCTION FINANCING

You can find our flyer here and the funding application here.

Information to Get Started:

Every loan application is different, but here are a few things to have ready when you contact CoBank to start the process:

• Project description
• Last three years financial statements
• Manager bio
• List of board members (if applicable)
• Bylaws or applicable State Statute
• Articles of Incorporation (if applicable)
• Tax ID number
• Proof of insurance (property and liability)

For further questions,
please contact Bentley Hodges
at 303-793-2139 or email
californiawater@cobank.com

CRWA Line of Credit:

A line of credit is a great way to backstop your utility’s rainy day fund. Emergencies happen and it’s important to have enough money available to deal with them when they do. A line of credit can also finance small items like a new computer system, improvements to your SCADA system, painting a water tank, the options really are endless. A CRWA Line of credit, through CoBank, comes with a low, variable interest rate based on a spread above one month Libor and you will not pay interest unless you use the line of credit. Additionally, there are no fees to set up the line of credit and your application qualifies for expedited review. This is a great way to utilize the CRWA Loan Program even if your big project is a few years away.

CRWA Term Financing:

Sometimes a small to midsized project comes up that needs to be dealt with immediately. CRWA has worked with CoBank to provide your solution. With flexible terms and a fixed rate for up to 30 years, a CRWA Term financing is the right funding choice for a project where it doesn’t make sense to use one of the more traditional financing products. The Interest rate can be either fixed or variable rate, or combination of both, and there are no fees charged by CoBank or CRWA for members. Additionally your application qualifies for expedited review, which means you’ll have your financing in place a lot quicker than you expected. 

CRWA Bridge or Gap Financing:

Utilize Bridge or Gap Financing to pay for project pre-development costs such as final project engineering and design, obtaining easements, preliminary legal costs or any items needed to meet USDA’s letter of conditions on USDA funded projects. Gap Financing can also be utilized to bridge those project funding gaps such as those that can exist between vendor invoices being paid and grant reimbursements. A CRWA Bridge or Gap Financing, through CoBank, comes with a low, variable interest rate based on a spread above one month Libor with no fees for CRWA members.      

USDA Interim (Construction) Financing:

One of the conditions associated with a Direct Loan with USDA Rural Development is finding a third party to provide interim (construction) funding. A CRWA interim financing, through CoBank, is a no fee, low cost, way to meet that condition. The financing is structured to match the timing of your project and you only pay interest on the money that’s used. Often that interest can even be capitalized into your USDA financing, which means you can use funds from your interim financing to pay interest on that same interim loan. 

A typical interim loan from CoBank comes with an interest rate spread above one month Libor. CRWA has worked with CoBank to provide water and waste water financings to utilities in CA with no fees. CoBank is the leading provider of interim loans for water and wastewater utilities combining their expertise with our negotiated lower pricing makes this a fantastic option.  

USDA Guaranteed Financing:

USDA Guaranteed Financings are a great way to work with USDA Rural Development through a third party lender. With a CRWA USDA Guarantee Financing, through CoBank, you’ll get all the expertise that comes with the nation’s leading provider of USDA Water and Wastewater Guaranteed financings with an interest rate that is lower than similar financings without a USDA Guarantee. Additionally, you can finance your project for up to 3 years with a fixed rate, no fees come from CoBank (there is a 1% fee charged by USDA Rural Development to pay for the guarantee) and your application qualifies for expedited review. USDA’s guarantee program has changed materially recently, and is a great option for utilities in high growth areas. For more details please speak with either CoBank or USDA.

About CoBank:
CoBank is a cooperatively owned bank with more than $125 billion in total assets. We provide loans, leases, export financing and other financial services to vital industries across rural America, including water and wastewater systems. Our experienced team of water banking professionals has a deep understanding of the opportunities and challenges facing your industry and an appreciation for your unique financing needs.