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Intercap Program
INTERCAP PROGRAM SUMMARY
The INTERCAP Program is a low cost, variable-rate program that lends money to Montana local governments, state agencies and the university system for the purpose of financing or refinancing the acquisition and installation of equipment or personal and real property and infrastructure improvements. The Board of Investments issues tax-exempt bonds and loans the proceeds to eligible borrowers. In addition to long-term financing, INTERCAP is an excellent source for interim financing.
DOWNLOAD INTERCAP PROGRAM POLICY AND APPLICATION FORM: Word | PDF
DOWNLOAD THE INTERCAP APPLICATION CHECKLIST. THIS CHECKLIST OUTLINES MOST OF THE SUPPLEMENTAL INFORMATION NEEDED TO SPEED UP THE REVIEW PROCESS: Word | PDF
Applicant Eligibility
Political subdivisions of state or local governments (including cities/towns, counties, school districts, water and sewer districts, solid waste districts, special and rural improvement districts, fire districts, fire service areas, state agencies, including the university system) authorized by law to borrow money.
Project Eligibility
•
Real property improvements
•
New and used equipment of all kinds
•
New and used vehicles of all kinds
• Water, wastewater, and solid waste projects
• Preliminary engineering and grant writing work
• Interim financing for construction or cash-flow loans
•
Energy retrofit projects
•
100% financing acceptable, equity or matching money not required
Funding Requirements
• Variable
rate loan program
• Interest rate changes each February 16
• No up-front costs
• Maximum loan amount per project depends on borrower’s legal
debt authority
• Loan term is limited to the useful life of the project, borrower term limit in statute, or 15 years, whichever is less.
• Interest and principal payments due semi-annually
on each February 15 and August 15
• Prepayment without penalty
• A reserve account may be required
Application Process
• Money
always available; no funding cycle
• Applications can be obtained via phone/fax/mail/e-mail/Board web
site
• $1,000,000 and under – considered and approved by Board staff
• Over $1,000,000 – considered and approved by Board
• Funds are released on an on-going basis as the project is completed
Historical INTERCAP loan rates
|
1987 |
5.625% |
|
1988 |
6.625% |
|
1989 |
7.950% |
|
1990 |
7.500% |
|
1991 |
6.350% |
|
1992 |
4.950% |
|
1993 |
4.350% |
|
1994 |
4.500% |
|
1995 |
6.400% |
|
1996 |
4.850% |
|
1997 |
4.750% |
|
1998 |
4.850% |
|
1999 |
4.300% |
|
2000 |
5.600% |
|
2001 |
4.750% |
| 2002 |
3.150% |
|
2003 |
2.850% |
|
2004 |
2.700% |
| 2005 | 3.800% |
| 2006 | 4.750% |
| 2007 | 4.850% |
| 2008 | 4.250% |
|
|
|
|
Average |
4.986% |
|
5 Year Average |
4.070% |
|
10 Year Average |
4.100% |
Contact Information
Montana
Board of Investments
Bond Program Office
2401 Colonial Drive, 3rd Floor
P.O. Box 200126
Helena, MT 59620-0126
Phone: (406) 444-0891
Fax: (406) 449-6579
