Governor Brian P. Kemp announced on June 09, 2020 that the Georgia Environmental Finance Authority (GEFA) is providing its borrowers a payment deferral period of six months.
“To help local governments impacted by COVID-19, I directed GEFA to provide a six-month payment deferral period to all of its current borrowers,” said Gov. Kemp. “During this unprecedented time, the payment deferral will offer some needed relief as we continue to restart our economy.”
Loans in repayment will have a six-month payment deferral and construction interest will not accrue for six months on projects currently under construction. The deferral period will provide a temporary relief of approximately $68 million in loan repayments for more than 330 borrowers.
GEFA is committed to protecting the financial health and wellbeing of its borrowers and the customers they serve. The deferment is an effort to support local governments as they manage decreased revenues and support customers who may be unable to pay their utility bills as a result of the impact of COVID-19 on businesses and families.
GEFA's water and sewer financing programs offer low-interest financing for drinking water, reservoir and water supply, water quality, stormwater, and solid waste infrastructure.
Additionally, to help provide relief to borrowers due to the impact of COVID-19, the Georgia Environmental Finance Authority (GEFA) will have a deferral period from July 1, 2020, to January 1, 2021. Below are the deferral details that may apply to loans you currently have with GEFA.
Projects in Repayment
Projects that are closed and in repayment will have a payment holiday for all principal and interest payments for six months. During that time, no interest will accrue on the loan. On January 4, 2021, borrowers will receive a debit notification that includes the upcoming amount to be withdrawn. The installment amount will be equal to the payment prior to the deferral period. For this action to occur, you will receive modification documents to acknowledge the deferral period.
Projects Nearing Closeout
Projects nearing the closeout period will have their amortization commencement date extended to January 1, 2021, and interest will not accrue. As projects close, a letter will be sent along with an amortization schedule commencing on January 1, 2021. For this action to occur, you will receive modification documents to acknowledge the deferral period.
Projects in Construction
Projects currently in construction will not make any construction interest payments and no interest will be accrued until January 1, 2021. For this action to occur, you will receive modification documents to acknowledge the deferral period.
Projects Nearing Loan Maturity
Projects with a maturity date prior to October 1, 2020, will continue as is. A debit notification will be emailed, and payments will be drafted from the existing authorized bank account. Once the final payment has been made, a letter will be sent acknowledging payoff has occurred along with the cancelled promissory note.
For more information, please visit gefa.georgia.gov/water-and-sewer-financing
About the Georgia Environmental Finance Authority (gefa.georgia.gov):
The Georgia Environmental Finance Authority
(GEFA), headquartered in Atlanta, provides financing for a variety of energy, land, and water projects. Since 1985, GEFA has approved financial commitments totaling more than $4.5 billion to local governments, businesses, and nonprofit organizations. For more information, visit gefa.georgia.gov
, or Flickr
For more information, contact: