Overview
The Stormwater Best Managemnt Practices (BMP) Loan Program offers low-interest loans for projects to control stormwater runoff.  The loans offer incentives for installing infiltration-based stormwater quality practices. Stormwater quality BMPs are included in the Iowa Stormwater Management Manual.

The Division of Soil Conservation (DSC) of the Iowa Department of Agriculture and Land Stewardship administer the program through its local Soil and Water Conservation Districts (SWCD); the Iowa Finance Authority (IFA) is the financial agent. Private entities use local participating lenders through a linked deposit arrangement, while public entities work directly with the Iowa Finance Authority.

Project Eligibility

• Detention basins
• Grassed waterways
• Infiltration practices
• Pervious paving systems
• Ponds or wetland systems
• Soil quality restoration
• Other practices that are shown to improve or protect water quality

Applicant Eligibility 

• Cities and counties
• Developers
• Landowners
• Watershed organizations

Loan Terms - Private Borrowers

• Prior to receiving a loan, the landowner must receive project approval from the local SWCD.
• Local banks originate the loans of $5,000 and more with a maximum term of 20 years.
• 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 water quality improvements are eligible.
• IFA deposits funds in an account at the local lending institution in an amount equal to the loan amount. This linked deposit allows the lender to make a loan to an eligible borrower at a low interest rate.

Loan Arrangements - Public Entities
Contact: Tracy Scebold 515-725-4922
Iowa Finance Authority

Project Application Process
1. 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.

Loan Application Process
1. The private borrower completes the participating lender’s normal loan application process.
2.  When the lender approves the loan, the lender completes the Stormwater Loan on-line application.