Clean Water SRF Program

Created in 1987 by the Clean Water Act, the Environmental Protection Agency (EPA) provided all 50 states seed money to capitalize state loan funds. The states then in turn help sewer systems by financing high-priority water-quality activities.

Project & Financial Manager

The Bond Bank and DEP jointly administer the CWSRF. The Bond Bank serves as the financial administrator and financial manager and DEP serves as the environmental and project manager for the program.

Eligible Borrowers

All publicly owned wastewater treatment facilities.

Eligible Projects

Examples of eligible projects include but are not limited to:

• Secondary & advanced treatment facilities
• Infiltration & inflow correction
• Interceptors
• Pumping stations
• Force mains
• Combined sewer overflow abatement
• Certain sewer extensions in designated areas and areas of failing septic systems

Application Deadline

Applications are accepted continuously during the year.

Rates

At or below-market interest rates.

Minimum/Maximum Loan Amount

There is no minimum loan amount. The DEP will determine the maximum loan amount based on availability of funds and project eligibility.

Issuance Costs & Fees

• Pro rata share of the issuance cost associated with a bond issue (if applicable)
• DEP administrative fee – 3.5% of annual debt service payment
• Bond Bank servicing fees – 1.5% of the annual debt service payment

As costs associated with the SRF program change periodically, please visit our website or contact the Bond Bank for a current fee schedule.

Term

Between 1 and 30 years. In all cases, the maximum loan term may not exceed the useful life of the financed asset. Short-term, interim loans are available to applicants.

Repayment Schedule

Payments are due twice a year, in April and October. The first principal payment is due within one year from project completion.

Loan Proceeds

Both interim and long-term financing options require that the funds be drawn-down through requisitions, as the SRF is a reimbursement program.

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