Provides no-interest and low-interest loans for the purchase of fire trucks and brush trucks

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Rural Bond Bank Act (30 ILCS 360/3-27); Public Act 95-35; Illinois Finance Authority Act (20 ILCS 3501/825-80); Public Act 93-205; Public Act 97-901

41 Ill. Admin. Code 290; 74 Ill. Admin. Code 1100.800-830

To provide a low cost way for fire departments and fire protection districts to purchase fire trucks and brush trucks

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Government Organizations;

Fire departments and fire protection districts are eligible to apply for loans. If the applicant is required to file reports through the National Fire Incident Reporting System (NFIRS), the applicant must have filed all reports for a minimum of 24 months prior to application for a loan. Failure to be in compliance with NFRIS requirements will result in an automatic denial of a loan. Applicants that have prior outstanding loans through the Fire Truck Revolving Loan Program will not be considered until applicants without prior loans have been considered. Having a prior outstanding loan does not preclude an applicant from applying for a loan.

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Direct Loans

Public Safety

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Applicants must apply for loans utilizing an application provided by the agency.

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Loan application periods are announced by the Office of the State Fire Marshal (OSFM) through various means (including press releases, agency website and fire department e-mail blasts). Applications are provided online and can be found at the OSFM website (www.sfm.illinois.gov). Loans are limited to $350,000 for fire trucks and $100,000 for brush trucks and must be repaid within 20 years (10 years for brush trucks). Loan applications are evaluated by a committee using a blind review process. The review committee is headed by the State Fire Marshal (or his designee), who serves as the chairman. Members of the committee include three fire chiefs (one from a volunteer fire department and one from a combination department, one from a career/municipal fire department), one representative from the Associated Firefighters of Illinois, one representative from the Illinois Association of Fire Protection Districts, one member of a volunteer fire department, and two representatives from the banking community (one from the Community Bankers Association of Illinois and one from the Illinois Bankers Association). Additionally, a representative of the Illinois Finance Authority sits on the committee as a non-voting member. In its evaluation, the committee looks at equipment need, financial need and if the applicant has received prior loans under this program. The committee will also determine if it believes an applicant has sufficient resources to repay the loan. The committee will rank applications and, based on available funding, will forward the highest ranking applications to the Illinois Finance Authority who will conduct a final review of the applicant’s creditworthiness. Applicants that rank the highest and are deemed to be creditworthy will be offered loans. Applicants with investment grade credit ratings (at or higher than Baa3, BBB- or the equivalent from any nationally recognized municipal credit rating agency) will be charged interest on the loans. The rate will be 50% of the mean of the Bond Buyer’s 20-Bond General Obligation Index for the twelve month period ending as of October 1st of the applicable loan application year. Interest rates for brush truck loans are set by statute based on where the truck is built. If both the chassis and the apparatus are built outside of Illinois, the interest rate will be 2%. If either the chassis or the apparatus are built outside of Illinois, the interest rate will be 1%. If both the chassis and the apparatus are built inside Illinois the interest rate will be 0%. Applicants that are denied loans may request that their loan application be reconsidered. Applicants awarded a loan must pay a $500 loan processing fee.

Application deadlines are set when the applications are released.

Varies

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Loan funds may only be used for the purchase of equipment outlined in the loan application, or to pay off a loan that was obtained no more than one year prior to the receipt of a loan under the program (loan payoff must be for the equipment purchase approved in the loan application). Equipment purchased through this program may not be given to, loaned to, transferred to, leased to, or sold to any person or entity that is not eligible to participate in the loan program as an applicant. Fire trucks purchased with proceeds from this program are to be insured for the life of the loan, with the State of Illinois Fire Truck Revolving Loan Program listed as the loss payee. Loan proceeds must be returned if any other funding is received for the same purchase, unless the funds are being used to supplement the purchase being made with loan funds. The amount of reimbursement should be equal to the amount of other funding received for the same purchase.

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Loan files and supporting documentation must be kept for the term of the loan and retained for 3 years after the final payment is made on the loan.

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$1 to $350,000

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http://www.sfm.illinois.gov/Fire-Service/Grants-and-Loans

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