STATE DIRECT LOAN PROGRAM
|Water Protection Program fact sheet||
|Division of Environmental Quality Director: Leanne Tippett Mosby||
Very low interest direct loans can be used for wastewater and drinking water construction projects. Eligible applicants are small communities that are currently experiencing financial difficulties or have a small financial need. These applicants would not qualify for assistance through the Clean Water or Drinking Water State Revolving Loan Funds.
These loan types are available:
- Small Borrower Loans ($100,000 limit) for drinking water and wastewater projects. These loans are limited to communities of less than 1,000 population.
- Direct Loans for applicants currently experiencing financial difficulties can be used in lieu of State Revolving Loan Funds.
The loan can be used for all the eligible costs of a project. If you are not certain about the eligibility of a cost, please contact the department’s Financial Assistance Center at 573-751-1192 for a preliminary determination.
Funding for this program is made available through State Water Pollution Control Bond Funds per Missouri Constitution, Article III, Section 37(g).
Applications are accepted at any time. Applicants seeking funding from the Missouri Department of Economic Development, Community Development Block Grant Program or the U.S. Department of Agriculture, Rural Development Program should submit their application to the Department of Natural Resources’ Financial Assistance Center at the same time that a funding proposal is submitted to the Missouri Water and Wastewater Review Committee.
Applications for wastewater system loans through the Clean Water State Revolving Fund are prioritized based on the environmental impact, in accordance with the priority point system established in 10 CSR 20-4.010.
Applications drinking water projects are prioritized based on the priority point system used for the Drinking Water State Revolving Fund. Projects are rated based on compliance with the Safe Drinking Water Act, public health benefits and the technical, managerial and financial capability of the system. The priority point criteria is adopted annually by the Missouri Safe Drinking Water Commission and is included in the annual Intended Use Plan.
Applications for small borrower loans are prioritized based on immediacy of need. Successful applicants will be notified in writing.