Revolving Loan Program for Water Pollution Control
Eligible Project Sponsors
authorities, and special districts responsible for sewerage services,
stormwater management, and estuary protection are eligible for
loans. The local government agency must generally own, operate, and maintain the
facilities to be financed by a loan. Projects
eligible for loans include new construction of and improvements to
wastewater sewer systems,
sewerage pump stations, sewerage treatment facilities, reclaimed water reuse
facilities, stormwater management facilities, and estuary protection
loans, available to all project sponsors regardless of size, provide moneys for
construction after planning and design are complete. Disbursements are made to
project sponsors after costs are incurred. Disbursements during construction are generally
made on a
While the nature of a project will
determine specific requirements, the general requirements for a construction loan are:
Plan cost-effective, environmentally and financially sound
facilities consistent with local comprehensive plans.
Provide for public participation in the planning process.
Establish how the loan will be repaid.
Acquire the necessary project sites.
Design facilities consistent with the planning
Obtain the necessary
permit(s) to enable construction.
Loans and Design Loans
Planning loans and design loans are available only to local
governments. Planning loans provide funding for the preparation of
facilities plan and related documents. Design loans provide funds
for the preparation of the bid documents and permitting. Planning
loans can be rolled over into design loans and design loans can be
rolled over into construction loans.
Inflow/Infiltration Loans provide funds for projects that correct
excessive inflow and/or infiltration problems. These projects
often combine certain aspects of planning, design, and construction so a
new type of loan was recently created for these activities.
Because planning and design do not need to be
complete to qualify, the following general requirements are more abbreviated than for
- Identify and develop a schedule for project planning,
engineering, and administrative activities.
- Establish how the loan funds disbursed for planning, design,
and administrative services will be repaid.
- Develop a preliminary estimate for the project cost.