The Authority offers 0% interest rates to borrowers whose MHIs are less than 80% and 2% interest rates to borrowers whose MHIs are greater than 80% but less than 100% of the state’s MHI. These 0-2% loan rates are considered “disadvantaged entity funding.” PPRF disadvantaged rates are limited to the first $150,000 for equipment loans and $500,000 for infrastructure loans, with no single entity receiving more than $500,000 in total disadvantaged entity funding per fiscal year. Funds needed in excess of these caps are made available at the NMFA’s AA+ rated municipal market interest rates. In addition to disadvantaged financial assistance, the PPRF permits the NMFA to pay up to $200,000 of cost of issuance assistance per entity per fiscal year.
Another benefit offered through the PPRF program takes the form of costs of issuance assistance which include the costs to cover legal fees incurred in closing a loan as well as costs to bring the loan transaction to the market. Current policy allows for the NMFA to provide costs of issuance assistance on a sliding scale based upon transaction size.