Determination of interest rate subsidy

Determination of interest rate subsidy. (1) General. Interest rate subsidies shall be set in accordance with s. 281.58 (8) (j) and (12) (a) , Stats., and this section. Subsidies are not available for interest payments that were due to the BCPL prior to the execution of an interest rate subsidy agreement with the department. (2) Project cost categories. (a) The department shall classify eligible costs of projects and portions of projects according to s. NR 162.10 (1) (a) and (c) . (b) Costs described in ss. NR 162.04 (1) (b) , 162.22 , and 162.23 (1) (a) and (b) are not eligible for interest rate subsidy. (3) Project interest rate calculation. The department shall calculate the project interest rate according to s. NR 162.10 (2) . (4) Calculation of interest rate subsidy. (a) Only that portion of the recipient’s BCPL loan that is used for a scored project is eligible for interest rate subsidy. (b) The maximum amount of project costs eligible for interest rate subsidy is the total eligible costs of the scored project multiplied by the parallel cost percentage as determined under the applicable requirements of s. NR 162.04 (1) (c) . (c) The interest rate subsidy shall be based on the market interest rate in effect at the time the interest rate subsidy agreement is executed. (d) The department shall calculate the interest rate subsidy as follows: 1. Loan ratio = Eligible principal / Loan principal 2. Interest ratio = (Interest rate – Project rate) / Interest rate 3. Subsidy ratio = Interest ratio * Loan ratio. 4. Annual interest rate subsidy = Interest charged on BCPL loan * Subsidy ratio.