The Stormwater Best Management 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 and Water Quality (DSCWQ) 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.  Click here to go to the IDALS web site for application information.

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 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: Water Quality Team 515-452-0466
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 Rob Davis at 515-281-6148.

Loan Application Process
1. The borrower completes the participating lender’s loan application process.
2.  When the lender approves the loan, the lender completes the Stormwater Loan online application.

Program Resources
Application Information
Lender Application             


We could see more erosion in our creek with every storm. We learned about the SRF and are very happy with the process and with everyone involved. The improvements have worked wonderfully and we no longer have erosion.

Shelly Moore
Blue Grass

Program Contacts
Borrower Contact:
Rob Davis
Iowa Department of Agriculture and Land Stewardship

Lender Contact:
Water Quality Team
Iowa Finance Authority