The Local Water Protection Program (LWPP) offers low-interest loans through participating lenders to Iowa landowners for projects to control the runoff of sediment, nutrients, pesticides or other nonpoint source pollutants from entering Iowa waters.
Prior to receiving a loan, the landowner must receive project approval from the local SWCD.
- Contour buffer strips
- Field borders or windbreaks
- Filter strips
- Grade stabilization structures
- Grassed waterways
- Other practices that are shown to improve or protect water quality
- The local lender originates the loans in amounts ranging from $5,000 to $500,000 with a maximum term of 10 years. The loan amount may not exceed the Natural Resources Conservation Services (NRCS) estimate by more than 10%.
- The interest rate charged the borrower will not exceed 3%.
- IFA will deposit funds equal to the principal amount of the loan at 0% interest.
- The deposit does not guarantee the loan nor is it collateral for the loan. The deposit is only to reduce the interest rate charged to the borrower.
- Annually IFA will withdraw from its deposit account an amount equal to the principal repayment of the outstanding loan. As a result, the amount in the deposit account will equal the principal outstanding on the loan.
- All costs directly related to the implementation of local water protection projects are eligible. Costs for the purchase of land are not eligible.
- The borrower works with the local Soil & Water Conservation District on the project. For more information on project eligibility or approval, contact Tony Toigo at 515.281.6148, or visit the Iowa Department of Agriculture web site.
- The borrower will work with a local participating lender to complete the lender’s normal loan application process. IFA accepts new participating lenders on an ongoing basis. More information for lenders is available here.
- When the loan is approved by the local lender, the lender completes the online application.