Official State of Iowa Website Here is how you know

SRF Program Interest Rate Change

September 20, 2023
SRF Program Interest Rate Change

In response to recent market trends, and to ensure the Program can meet the future water infrastructure financing needs of future borrowers, Iowa SRF will implement a change to how interest rates for SRF Construction Loans are calculated. Beginning October 1, 2023, Iowa’s State Revolving Fund Loan Programs will utilize Base Interest Rates for Tax-Exempt and Taxable Standard Term SRF Loans (up to a 20-year term) that will be re-calculated and published on the first business day each January, April, July, and October (the “Effective Date”).  Current SRF loan interest rates will be published and readily available at on the Loan Interest Rates webpage.


Standard Term Loans (up to 20 years)

The Base Interest Rate for tax-exempt loans will be calculated by taking 75 percent of the average Bloomberg BVAL General Obligation Municipal AAA 20-year yield (“BVAL”) for the calendar month immediately preceding the Effective Date.  For example, the Base Interest Rate effective October 1 will be calculated using the average 20-year BVAL yield for the month of September. Extended term loans of up to 30 years are also available for qualifying projects and will be calculated by Base Interest Rate + 1.00%.
Iowa SRF has chosen BVAL's AAA Municipal Curves as the benchmark indices because they are widely used, objective, transparent, and publicly available through the Municipal Securities Rulemaking Board to anyone who wishes to track the market independently.

Interest Rate Lock

Applicants will receive a financing offer from Iowa Finance Authority including an interest rate lock for 90 days* on the later of (1) the date a complete bid package is received (as determined by DNR staff), or (2) the date of final environmental review clearance.  The applicant should then work with their Bond Counsel, Municipal Advisor, and other members of the financing team to complete the loan issuance process (e.g., submit SRF Construction Loan Application, hold public hearing and authorize debt, complete proforma financial analysis, pass rate ordinance if required, etc.).  Should the Program’s loan interest rates fall prior to signing a loan agreement, the applicant will automatically receive the more favorable rate at loan closing, given they are still within the 90-day rate lock period. 
For more information on SRF Loan Interest Rates,  
Appendix D, CWSRF IUP:
Appendix D, DWSRF IUP:
SRF Loan Interest Rates webpage:
Questions can be directed to Iowa Finance Authority at
*Actual interest lock period may extend beyond 90 days to align with loan closing dates or account for state holidays.