3. Drinking Water State Revolving Fund

This page gives only a quick summary of major points.  Links to further information regarding DWSRF are available on the SRF Forms and Guidance web page (including links to application forms, guidance documents for the requirements, current and draft IUPs, and more).

Applicants:  state agencies, counties, municipalities, joint powers boards, and other entities constituting a political subdivision under the laws of the state (such as various types of special districts).

Example Project Types:  Most drinking water source, treatment, transmission, storage, and distribution projects for a public water system are eligible for DWSRF funding.

Loan Terms: Normally up to 20 years, but under some circumstances a term of up to 30 years may be allowed.  Loans have an interest rate of 2.5% and a 0.5% loan origination fee.  Some loans may be at even lower interest rates and/or include forgiveness of a portion of the principal.

Applying for Loans:  Complete and submit 3 copies of the DWSRF loan application forms to the Office of State Lands and Investments.  We suggest you begin the loan application process at least 6 to 12 months prior to bidding the project.  The State Loan and Investment Board has final loan approval authority; it considers loans at its regular meetings held every two months.

Loan Requirements:  Loan applicants must show that they can repay the loan, must demonstrate capacity development, and must adhere to federal environmental, social, and economic cross-cutting requirements and state procurement requirements.  The project must be listed on the current year’s DWSRF Intended Use Plan (IUP), which we update once annually.