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.   

The Division of Soil Conservation and Water Quality (DSCWQ) of the Iowa Department of Agriculture and Land Stewardship administers 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  
  • 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. 
Project Application Process 
  • The borrower works with the local SWCD on the project. For more information on project eligibility or approval, contact the Urban Conservation Team or visit the Iowa Department of Agriculture Stormwater BMP loan page to view the application. 

Loan Application Process 
  • The borrower will work with a participating lender to complete the lender’s loan application process.
  • When the loan is approved by the lender, the lender completes the Stormwater Loan online application.