Drinking Water State Revolving Fund

State Direct Loan Program

The State Direct Loan Program is available to applicants who do not meet minimum financial criteria for a leveraged loan. Through this program the department may make direct loans to public water systems by purchasing general obligation bonds, revenue bonds, short-term notes or other acceptable debt obligation for planning, design or construction of any eligible project. Financing at lower than market rates, is very similar to that of the leveraged loan program. One hundred percent of eligible planning, design, and construction may be financed. Loans are made with a maximum 20-year repayment term.

Eligible systems include public water supply districts and rural community water systems located in Missouri.

Questions About Funding Public Drinking Water Systems Through the DWSRF State Direct Loan Program

Q. Who is eligible to apply for the direct loan program?
Q. How will the direct loan work?
Q. What will the interest rate for a direct loan be?
Q. What are the additional costs to participate in the direct loan program?

Q. Who is eligible to apply for the direct loan program?

A. Public water supply districts and rural community water systems that do not qualify for the DWSRF Leveraged Loan program. However, eligibility to apply does not guarantee assistance or eligibility for assistance.

Q. How will the direct loan work?

A. The community must have a successful bond issue. The department will purchase the city's revenue or general obligation bonds and provide a below market interest rate.

Q. What will the interest rate for a direct loan be?

A. The interest charged by the department will be essentially the same interest rate currently being charged to the leveraged loan recipients.

Q. What are the additional costs to participate in the direct loan program?

A. The department will charge a small annual administration fee just as in the leveraged loan program. The recipient must also fund a debt service reserve and compensate the paying agent and bond counsel for their services.

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