Drinking Water SRF Program

In 1996 Congress amended the Safe Drinking Water Act (SDWA), to include the Drinking Water State Revolving Loan Fund (DWSRF) to assist eligible water systems in financing the cost of infrastructure needed to comply with SDWA requirements.

Project & Financial Manager

The Bond Bank and DHHS jointly administer the DWSRF. The Bond Bank serves as the administrator and financial manager and DHHS serves as the project manager for the program.

Eligible Borrowers

All public and private water systems.

Eligible Projects

• Public Health Projects
• Treatment Facilities
• Aging Infrastructure
• Main Replacement
• SDWA Compliance
• Land Acquisition

All projects that receive financing from the DWSRF program must first be placed upon the DHHS project priority list and then go through the DHHS approval process. Placement on the list is based on the standards and guidelines set forth by the SDWA and the priority ranking parameters established by the State of Maine’s Intended Use Plan.

Application Deadline

Applications are accepted continuously during the year.

Rates

At or below-market interest rates.

Minimum/Maximum Loan Amount

There is no minimum loan amount. The DHHS will determine the maximum loan amount based on availability of funds and project eligibility.

Issuance Costs & Fees

• Pro rata share of the issuance cost associated with a bond issue (if applicable)
• DHHS Project Management fee – 1% of the loan amount
• Bond Bank servicing fees – 5.0% of the annual debt service payment

As costs associated with the SRF program change periodically, please visit our website or contact the Bond Bank for a current fee schedule.

Term

Between 1 and 20 years and 30 years for disadvantaged communities. In all cases, the maximum loan term may not exceed the useful life of the financed asset. Short-term, interim loans are available to applicants.

Repayment Schedule

Payments are due twice a year, in April and October. The first principal payment is due within one year from project completion.

Loan Proceeds

Both interim and long-term financing options require that the funds be drawn-down through requisitions, as the SRF is a reimbursement program.

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