CWSRF Applications

• The SRF program is a low-cost loan and grant award program to fund Clean Water and Drinking Water projects. The goal of the SRF program is to have a self-sustaining fund where the loan payments made into the program become available for future loans.  When you apply with either DEP (Clean Water) or DHHS (Drinking Water), they may review and approve your project and a loan amount or award for your project.  The amount of the loan is identified by the department and Maine Municipal Bond Bank administers the financial aspects of the loan.  Once your project is approved by DEP or DHHS, a MMBB loan application must be completed, a financial review must be completed and, depending on the type of loan it may need to go before the MMBB Board of Commissioners for approval.  Once the loan is approved, a closing is scheduled and once the loan is closed, funds become available via payment requisitions.
• The SRF program is a reimbursement program for both the Clean Water and Drinking Water Programs and payment requisitions are sent to the department, reviewed then approved, then the department sends us an approved payment requisition. MMBB processes the payment requisition and submits the payment information to a bank for payment to your account.

• Even if your award is 100% forgiven, it is still considered a loan requiring certain legal loan documents such as an application, commitment letters, loan agreements, etc. These requirements are set forth by the SRF program, not by MMBB.  Language within the loan documents will identify that the loan is 100% forgiven.
• Because the loan is going through the SRF program, and this program is a reimbursement program, reimbursement funds are available through the same payment requisitions process.

• First, work with the department to ensure they have all the necessary documentation for your project. Much of the documentation they need is also needed by us.
• Get a copy of your Agreement to Comply (Clean Water) or Award Letter (Drinking Water) as it will have pertinent information needed to complete the MMBB Application such as loan amount, project number, etc.
• Read the Help Topic “What is the most efficient process to ensure timely financial application review?”
• Review the MMBB application list of documents needed and have them ready to upload.
• Complete the MMBB Application.

• There are two types of applications: 100% forgiven loans and Standard Applications. If your loan is not 100% forgiven, it is a standard loan application.

• 100% Forgiven loans
  • • This MMBB financial application is an abbreviated loan application that does not require MMBB Board of Commissioner’s approval. To ensure the most efficient process:
    • Work with the department to ensure they have all the documentation they need including capacity reviews, environmental reviews, plans and specs and any other documents they may need.
      • Required Documents for MMBB application
        • Loan Authorization – Provide a signed and dated document from a person authorized to obtain a loan. This could be meeting minutes from a Board of Trustees meeting indicating authorization for the loan, or it could be the owner of the system, or it could be a school board or a superintendent for example.  Ensure that the document is from an authorized representative, the document includes the full loan amount (not just a forgiveness amount) and is dated.
        • Signed engineer’s contract.
        • Estimated Project Costs – A full breakdown of the project costs that must total the entirety of the award amount. Costs must be broken down to and account for every dollar of the award amount.
        • Completed MMBB application
      • Once the MMBB receives the application with the loan authorization document and the engineer’s contract, we work with the department to obtain a Project Authorization Form which is the final document needed to proceed toward closing.
  • Standard Application
    • Work with the department to ensure they have all the documentation they need including capacity reviews, environmental reviews, plans and specs and any other documents they may need.
      • Required Documents for MMBB application
        • 3 years of Audited Financial Statements
        • Operating Budget
        • Current and Proposed Rate Sheets (if applicable)
        • Amortization Schedules for any and all non-MMBB bonds, notes, Bond Anticipation Notes, Grant Anticipation Notes, etc. If there is any long-term debt identified within the Audited Financial statements, amortization schedules must be provided.  If any new long-term debt has been accrued after the most recent audited financial statement, it must be included.
        • Estimated breakdown of project costs/budget
        • Proposed construction drawdown schedule or invoice (i.e., Vac Truck purchase)
        • Charter and any amendments (for utility districts)
        • Loan Authorization – Provide a signed and dated document from a person authorized to obtain a loan. This could be meeting minutes from a Board of Trustees meeting indicating authorization for the loan, or it could be the owner of the system, or it could be a school board or a superintendent for example.  Ensure that the document is from an authorized representative, the document includes the full loan amount (not just a forgiveness amount) and is dated.
        • Completed MMBB application
      • Once the MMBB receives the application with the supporting documentation, the underwriting process can begin. All necessary documents must be received for underwriting to begin.  Standard loan applications must have approval from the MMBB Board of Commissioners and a Project Authorization Form from the department must be provided to MMBB before closing.
    • If these directions are followed, it will result in the most efficient process start to finish. If any documentation or information is not provided to the department or to MMBB, it will result in delays.

• It is imperative to ensure all documentation is provided at the time of the application submission. Failure to do so will result in delays and possible resubmission of the application and documentation.  A list of all requirements is made available prior to application submission to ensure you have gathered all required documentation.  Applications are reviewed on a first-in, first-out basis and if all required documents are not received upon the initial application submission, the application is considered incomplete and moves to the end of the line.  This enables us to provide the best level of service to applications that can be worked upon receipt.  If you have any questions about what is required, please reach out to us in advance of the application submission.

• Once your loan is closed, you will need to submit payment requisitions to the respective department for review. Once the department approves, they will submit the payment requisition to us for processing.  We then send the payment information to your financial institution for payment into your account.  There is no definitive timeframe for payment processing, but ensuring the department has what they need to efficiently review the payment requisition and approve the payment requisition is the best way to ensure timely payment.

Once the MMBB Board of Commissioners approves the loan application, it is good for up to 12 months.  If you have not closed the loan within 12 months, the loan commitment is considered expired and you will need to submit a new MMBB application and the loan must be reviewed again, in its entirety, including underwriting and seeking board approval.