Established under the authority of Chapter 55 of the 2000 Public Laws of Rhode Island. The RIZILF was structured by the Agency, along with its consultants and input from the cities and towns of Rhode Island, to maximize the number of loans made utilizing the RIZILF.

The Agency has determined that ½ of the loan will be at zero percent interest and ½ of the loan will be at the subsidized interest cost (the “Subsidized Interest Cost). The RIZILF will be used to pay the difference between the Subsidized Interest Cost and the zero subsidized interest cost (the “Zero Subsidized Interest Cost”). The Subsidized Interest Cost is 66 2/3 % of the Borrower’s Market Rate. The Zero Subsidized Interest Cost will be 50% of the Subsidized Interest Cost. The Zero Subsidized Interest Cost is calculated based on the Agency’s provision of ½ of the loan at zero percent interest and ½ of the loan at the Subsidized Interest Cost. Notwithstanding the above, the Zero Subsidized Interest Cost for non-investment grade borrowers will be zero percent (0%) interest. Non-investment grade borrowers, including those borrowers which were non-investment grade within the twelve months prior to filing a loan application with the Agency, may receive 100% of their loan (up to $25,000,000) at zero percent interest.

The Agency will provide loans at the Zero Subsidized Interest Cost for as long as funds are available. Borrowers will be contractually liable for the Market Rate on the loan but will be billed only for the Zero Subsidized Interest Cost as long as funds are available in the RIZILF. In the event the RIZILF is wholly or partially depleted, the Agency may require the borrower to pay up to the Subsidized Interest Cost. In the event of a default by the borrower or other borrowers, the Agency may bill the borrower for the Market Rate..