Water Protection Program fact sheet
Division of Environmental Quality Director: Ed Galbraith

Very low interest Small Borrower loans up to $100,000 are available for drinking water and wastewater projects.

Loan Terms
Small borrower loans have a $100,000 limit for drinking water and wastewater projects. Loan terms include a subsidized interest rate that is 30% of the municipal market rate at the time of loan closing. The loan payback period is typically 20 years or the project’s design life. Voter-approved bonds are not required for this loan program. Successful applicants are able to demonstrate an ability to repay the loan, preferably with a dedicated revenue source such, as water or wastewater user fees. 

Eligible Costs
Eligible project costs for drinking water projects are described in 40 CFR 35.3520. Eligible project costs for wastewater are described in 10 CSR 20-4.040 (21). If you are not certain about the eligibility of a cost, please contact the Missouri Department of Natural Resources’ Financial Assistance Center at 573-751-1192 for a preliminary determination.

Eligible Applicants
Eligible applicants are political subdivisions, such as counties, incorporated cities and towns, regional water or sewer districts, of less than 1,000 population.

Legal Authority
Funding for this program is made available through State Water Pollution Control Bond Funds per Missouri Constitution, Article III, Section 37(g).

Application Process
Small Borrower Loan Applications (MO780-2035) are accepted year round. Applicants seeking joint funding from the Missouri Department of Natural Resources and the Missouri Department of Economic Development’s Community Development Block Grant Program should submit their application to the Department of Natural Resources’ Financial Assistance Center at the same time that a funding proposal is submitted to the Missouri Water and Wastewater Review Committee.

Selection Process
Applications for the funding of drinking water and wastewater projects are prioritized on a first come, first served basis. If available funds are not sufficient to finance all applications, the funds will be distributed based on immediacy of need. Preference is given to recipients receiving funding through other funding programs administered by the department. Successful applicants will be notified in writing.