The State Revolving Fund (SRF) is the best choice to finance the design and construction of Iowa water and wastewater infrastructure.  

The Clean Water SRF funds wastewater treatment, sewer rehabilitation, and stormwater quality improvements, as well as non-point source projects.
 
The Drinking Water SRF funds water treatment plants or improvements to existing facilities, water line extensions to existing unserved properties, water storage facilities, wells, and source water protection efforts.
 
The Department of Natural Resources (DNR) and the Iowa Finance Authority (IFA) jointly administer the SRF. The DNR administers the environmental and permitting aspects to get projects ready for financing. This includes engineering and design approval and construction permits. DNR staff assists applicants through the environmental review process. IFA manages the financing side of the programs. IFA staff works with applicants on loan approvals and disbursements.
 
Eligibility
Clean Water Loan Program
Publicly owned wastewater treatment works, including those owned by cities, counties, sanitary districts, and utility management organizations are eligible.
 
For non-point source projects, both public and private entities are eligible, including farmers, landowners, watershed organizations, landfills and rural homeowners.
 
Public and private community water systems whether they are for profit or not for profit, nontransient noncommunity public water supplies if they are either publicly owned or are not for profit and transient noncommunity systems if they are owned by government entities are eligible.
 
 
Types of Loans
SRF has the lowest cost funds compared to other financing options, with interest rate of 1.75% for loans of up to 20 years.  The extended loan term is up to 30 years, based on the average life of the project components, for all Clean Water SRF loans. Communities considered disadvantaged under DNR rules can receive 1.75% on loans from 20-30 years.  Other extended term loans will be at 2.75%. For Drinking Water SRF loans, only disadvantaged communities (based on Community Development Block Grant criteria) can qualify for extended terms and the interest rate is 1.75%.  There is a 0.5% origination fee and a 0.25% annual servicing fee on outstanding principal.
 
P&D Loans are offered at 0% interest for up to three years to cover engineering and project development costs. P&D loans can be rolled into an SRF construction loan, or paid off with other permanent financing.
 
These loans are offered at a 0% interest rate and can help public water supplies acquire land and conservation easements from willing sellers, or fund source water protection practices in their wellhead or source water protection areas.
 
Low-interest loans are available to public and private borrowers to address stormwater management, inadequate septic systems, landfill closure, lake restoration, soil erosion control, brownfield cleanup, manure management and much more.
 
Intended Use Plans (IUPs)
The Intended Use Plans (IUPs) for the Clean Water SRF and the Drinking Water SRF outline the amounts of funding available and the planned uses (including project priority lists). The IUPs are published quarterly with an opportunity for input by stakeholders and program users before approval by the Iowa Environmental Protection Commission.  

 SRF Forms

SRF Operating Procedures