School Loan Revolving Fund
The School Loan Revolving Fund (SLRF) is a self-sustaining fund that makes loans to school districts to assist with making debt service payments on state qualified bonds issued under the School Bond Qualification and Loan Program. Any money repaid by school districts on loans made by the SLRF are deposited back into the fund for future use.
In order to borrow from the state for debt service needs the district must:
- Have the bond issue qualified.
- Levy a minimum of 7 debt mills.
School Loan Revolving Fund participants must submit a board authorized application due annually every August 1.
- 2020 Annual Activity Application
- School District Loan Account Statements
When a school district intends to borrow from the SLRF, it is important to understand the ongoing annual administrative effort that will be required for obtaining disbursements and accounting for borrowing and repayments until the debt is repaid.
- SBQLP Administrative Rules
- Computed Millage Waiver Request (Form 5108)
- School Loan Revolving Fund Process
Borrowing for Debt Service
A district may request a loan from the state for the additional portion of the funds required to make full debt service payment rather than increase its current debt millage. Funds are disbursed to the district before the May and November debt service payments.
Debt Service Repayment
While loan repayment is deferred until the required debt millage yields enough to pay the district's debt service obligations, interest accumulation does begin once funds are disbursed.