(c) The minimum rate of interest to be paid on a loan is 1%. The maximum rate of interest may not exceed the following:

1. (1) For projects in counties where the unemployment rate exceeds the Statewide unemployment rate by 40% or more, 1% for the first 5 years and 25% of the bond interest rate for the remainder of the loan.
2. (2) For projects in counties where the unemployment rate exceeds the Statewide unemployment rate, but exceeds it by less than 40%, 30% of the bond interest rate for the first 5 years and 60% of the bond interest rate for the remainder of the loan.
3. (3) For other projects, 60% of the bond interest rate for the first 5 years and 75% of the bond interest rate for the remainder of the loan.
4. (4) For projects within municipalities for which unemployment rates exist which would qualify the project for lower interest rates than if the relevant county unemployment rates were used, the unemployment rate of that municipality may be used in determining the interest rate on the loan.
5. (5) As used in this subsection, ‘‘unemployment rate of the county’’ means the average unemployment rate for the county in the most recent calendar year for which data have been finalized. For the projects which serve multiple counties, the highest unemployment rate of the counties involved shall be used. The unemployment data utilized shall be data reported by the Department of Labor and Industry.
6. (6) As used in this subsection, ‘‘bond interest rate’’ means the rate of interest paid by the Commonwealth immediately preceding the date of the loan for the general obligation bonds used to finance the loan.

(d) In establishing the interest rate of a loan, the Board will consider the ultimate effect that financing a project’s costs will have on the rates that customers will have to pay. A rate increase will be compared with local incomes and ability to pay in determining a loan’s interest rate. In the process of setting an interest rate, the Board may consider factors including, but not limited to, the following:

1. (1) The current market interest rate.
2. (2) The financial, social and economic condition of the area served by the project in comparison with communities in similar socio-economic circumstances.
3. (3) The financial condition of the applicant.
4. (4) The median household income in the system’s service area.
5. (5) Historical, existing and projected user fees.
6. (6) The financial condition of the Authority and the necessity to maintain the Authority’s funds in a financially sound manner.