Q. Who actually OK'd the loan?
A. The loan was approved by the Pennsylvania USDA Rural Development Office in accordance with underwriting criteria established by our regulation 1942-A (Community Facilities Project Guide.)
Q. Is the
A. It is a direct loan from the federal government.
Q. The loan was approved based on what criteria?
A. The loan was approved based on information provided to the agency from the applicant.
Q. Did the
A. There are many things taken into consideration during the underwriting process. At the time of approval, it was understood that a tax raise was needed to fund the building and the current building was at the end of its useful life. The agency was advised that, in general, the residents were in agreement and in favor of the project.
Q. Is 40 years a standard loan repayment term?
A. Many of our loan terms are 40 years to allow the smallest monthly payment to our borrowers. There is no prepayment clause and borrowers can pay the loan off at any time.
Q. Can the borough take as much money as it needs of the
A. The loan has been approved for
Q. What is the status of the project with the
A. We do not have a lot of specifics right now. We are under the impression the site and the plans are in development.
A. The final interest rate will be determined at the actual loan closing.
Q. Will the problems the
A. I cannot comment on the fire company's loan status except to say that they are separate transactions and have no bearing on the borough's loan status.
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