Drinking Water State Revolving Fund

Small Borrower Direct Loan Program

This program is currently available only to communities or public water districts of less than 1000 population or service area. Revenue or general obligation bonds are not required to participate. Qualifying communities or public water districts may be considered for a direct loan for drinking water 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 water districts become familiar with the SRF loan programs.

Questions About Funding Public Drinking Water Systems Through the Proposed DWSRF Small Borrowers Direct Loan Program

Q. Who will qualify 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 will qualify for the Small Borrower Direct Loan Program?

A. A community or public water district of less than 1000 population or service area may be considered for a direct loan for water or 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. In addition to the interest charges there will be a small annual administration fee.

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