For Immediate Release
Expands low-interest loans for local governments
Today, the Senate unanimously passed a measure introduced by Senator Randy Vulakovich that would expand a low-interest loan program for municipalities.
Senate Bill 591 would increase the amounts municipalities can borrow through the Local Government Capital Project loan program for equipment purchases (increased from $25,000 to $50,000) and facility upgrades (increased from $50,000 to $100,000). The program, which was set up as a self-sustaining revolving loan fund, provides loans at a two percent interest rate to municipalities with populations less than 12,000.
“This program is very important for our smaller-sized communities and has been successfully used to procure needed equipment and repair buildings,” said Sen. Vulakovich. “Increasing the size of the loans will make the program that much more effective.”
SB 591 now goes to the House of Representatives for further consideration.