In 1996 Congress amended the Safe Drinking Water Act (SDWA), to include the Drinking Water State Revolving Loan Fund (DWSRF) to assist eligible water systems in financing the cost of infrastructure needed to comply with SDWA requirements.
The Bond Bank and DHHS jointly administer the DWSRF. The Bond Bank serves as the administrator and financial manager and DHHS serves as the project manager for the program.
All public and private water systems.
All projects that receive financing from the DWSRF program must first be placed upon the DHHS project priority list and then go through the DHHS approval process. Placement on the list is based on the standards and guidelines set forth by the SDWA and the priority ranking parameters established by the State of Maine’s Intended Use Plan.
Applications are accepted continuously during the year.
At or below-market interest rates.
There is no minimum loan amount. The DHHS will determine the maximum loan amount based on availability of funds and project eligibility.
As costs associated with the SRF program change periodically, please visit our website or contact the Bond Bank for a current fee schedule.
Between 1 and 20 years and 30 years for disadvantaged communities. 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.
Payments are due twice a year, in April and October. The first principal payment is due within one year from project completion.
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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Local bond counsel serves a critical role in confirming the legality of debt issuances. Engaging counsel in the early stages will ensure that they will be able to provide a legal opinion, which is a loan program participation requirement.
Download a printable PDF version of our approved list of bond counsel.