Planning & Design (P&D) Loans provide affordable financial assistance for costs incurred in the planning and design phase of SRF-eligible drinking water or wastewater projects. These loans have 0 percent interest for up to three years and no initiation or servicing fees. In addition, there is no minimum or maximum loan amount. Project planning and design costs must be directly related to the proposed wastewater, stormwater or drinking water project. Eligible costs include engineering fees, archaeological surveys, environmental or geological studies, and other costs related to project plan preparation. P&D Loans will be rolled into a State Revolving Fund (SRF) Construction Loan or can be repaid when other permanent financing is committed.  

Planning & Design Loans enable Iowa’s communities to take the necessary steps to improve their drinking water and wastewater facilities. Since 2005, P&D Loans have funded 760 projects in Iowa totaling nearly $300 million.

Process 
Applications are accepted on an ongoing basis. Please refer to the IUP Dates and Deadlines. Similar to other municipal debt issues, applicants must engage Bond Counsel to initiate proceedings and draft bond documents.

Eligible Costs 
P&D Loans may be used to pay for project planning and design costs directly related to the proposed wastewater, stormwater, or drinking water project.  Eligible costs include, but are not limited to, engineering fees, archaeological surveys, environmental studies, fees related to project plan preparation and submission and other costs related to project plan preparation. 

Eligible Applicants 
Publicly owned treatment works (POTW) and public water systems (PWS) are eligible to apply for a P&D Loan, which may include the following:
  • Communities 
  • Counties 
  • Conservancy districts and water authorities eligible for water pollution control and drinking water SRF loans 
  • Private and non-profit entities eligible for drinking water SRF loans 
  • Regional sewer/water districts
Water Pollution Control Projects 
  • Construction of treatment plants or improvements to existing facilities 
  • Sewer line extensions to existing unsewered properties 
  • Combined sewer overflow corrections 
  • Storm water projects that have a water quality benefit 
Drinking Water Projects 
  • Construction of treatment plants or improvements to existing facilities 
  • Water line extensions to existing unserved properties 
  • Water storage facilities 
  • Wells  
Loan Terms 
  • No interest (0%) or payments due for up to three years 
  • No initiation or servicing fees 
  • No minimum or maximum loan amount 
  • Loans may be rolled into an SRF Construction Loan or repaid when permanent financing is obtained 
  • Planning and design costs must be directly related to SRF-eligible wastewater, storm water or drinking water projects