MCWT Loans

  • Maximum 2.4% interest rate.

  • Up to 30-year maturity for clean water loans.

  • Up to 20-year maturity for drinking water loans.

  • Interim loan financing available: interim interest rate charged is one-half the Bond Buyer MMD AAA index; one time origination fee between $500-1000.

  • Costs of issuance (excluding local bond counsel) may be financed at closing of permanent loan.

  • A semiannual administrative fee of 0.15% of the outstanding principal of a permanently financed loan is charged to support the administrative costs of the MCWT.

  • Loan proceeds, once permanently financed, must be expended within 2 years of closing.

  • Loans are most typically a general obligation of the borrower.

MCWT Bonds

  • MCWT bonds are rated AAA by all three rating agencies.

  • Diverse make-up of borrower pool (292 governmental entities) across the Commonwealth.

  • MCWT has ability to intercept extensive state local aid payments to communities in case of default.