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Drinking Water State Revolving Fund (DWSRF)

The Drinking Water State Revolving Fund (DWSRF) Loan Program in Indiana offers low-interest financing for the construction of drinking water infrastructure. Since its first loan in 1999, the DWSRF has provided over $321 million in financing to Indiana communities, resulting in more than $34 million in savings due to its subsidized interest rates. In the fiscal year 2008 alone, these savings amounted to more than $8 million.

The fund initially started with capitalization grants from the U.S. Environmental Protection Agency (EPA) and continues to receive such grants. Additionally, it uses repaid loans and market leveraging to increase the available funds at a low-interest rate for eligible projects.

Entities eligible for DWSRF loans include political subdivisions like cities, towns, counties, regional water districts, and privately-owned or non-profit facilities. The types of projects eligible for funding include the construction of source intake structures and wells, treatment plant facilities, water storage facilities, and transmission and distribution mains, including water line extensions to unserved properties with water quality issues.

The loan terms under the DWSRF are quite flexible. Loans typically have a fixed rate and a 20-year term, but terms can extend up to 35 years for qualifying projects. Interest rates are adjusted quarterly and are at or below 90% of the average 20-year AAA-rated, general obligation bond Municipal Market Data. These rates can be further reduced for projects with Green Project Reserve components, nonpoint source features, or for qualifying projects that include lead line replacement.

The loan approval process involves several steps, including the submission of a loan application, project planning meetings, technical and environmental reviews, and compliance with various regulatory requirements..

Project Types

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Funding source

Indiana Finance Authority
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Length of funding

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who is eligible

Local governments, water utilities
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Value of the funding

Varies based on project size
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Funding type

Loan, Grant
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Funding requirements

Drinking water infrastructure plans, financing details
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Match Requirements

Requires a local match (percentage varies)
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Deadlines

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Funding Scale

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These are the steps for this funding resource.

Please double check these steps with the funding agency to ensure you are not missing any needed information or steps.
  1. Pre-Application: Water utilities express interest and consult with the Indiana Finance Authority regarding project eligibility.
  2. Application Submission: Detailed application including project plans, engineering reports, and financial documents.
  3. Review and Approval: Indiana Finance Authority reviews applications, considering project feasibility, public health impact, and compliance with drinking water regulations.
  4. Funding Allocation: Approved projects receive low-interest loans or grants, based on project eligibility and funding availability.
  5. Project Implementation: Water utilities implement approved projects, ensuring compliance with drinking water quality standards and reporting progress to the Indiana Finance Authority.

Additional Resources

https://www.in.gov/ifa/srf/