Clean Water State Revolving Fund

Picture of part of wastewater system.

Small Borrower Direct Loan Program

This program is currently being developed and is available only to communities or public sewer districts of less than 1,000 population or service area. Qualifying communities or public sewer districts may be considered for a direct loan for wastewater system improvements for up to $100,000 with a maximum 20-year repayment term. In addition to providing financial assistance, this program is geared toward helping communities and sewer districts become familiar with the SRF loan programs.

Questions about financing wastewater systems through the small borrower direct loan program

Q. Who qualifies for the Small Borrower Direct Loan Program?
Q. Are Revenue or general obligation bonds required?
Q. What will the interest rate for a Small Borrower Direct Loan be?
Q. What are the costs associated with participation in the Small Borrower Direct Loan Program?

Q. Who qualifies for the Small Borrower Direct Loan Program?

A. A community or public sewer district of less than 1,000 population or service area may be considered for a direct loan for wastewater system improvements for up to $100,000. Applicants wishing to participate in the Small Borrower Direct Loan Program should indicate this in their application.

Q. Are revenue or general obligation bonds required?

A. No, revenue or general obligation bonds are not required to participate. Recipients will have limited access to the program after the initial loan.

Q. What will the interest rate for a Small Borrower Direct Loan be?

A. The interest rate charged by the department will be very similar to that charged in the Leveraged Loan Program.

Q. What are the costs associated with participation in the Small Borrower Direct Loan Program?

A. As with our State Direct Loan Program, in addition to the interest charges there will be a small annual administration fee, paying agent fees, program cost of issuance and local bond counsel. Program cost of issuance and local bond counsel fees are paid from loan proceeds. Ongoing fees are paid annually by the recipient.

To receive additional information regarding this program see the Contact Information.