JEFFERSON CITY, MO, OCT. 14, 2021 - The Missouri Department of Natural Resources’ Financial Assistance Center invites communities to apply for below-market financing for capital projects through the Clean Water State Revolving Fund and Drinking Water State Revolving Fund programs. Communities that submit their applications by March 1, 2022, will receive top priority for loan funding next fiscal year and can compete for grant funding from the state revolving funds.
The Clean Water State Revolving Fund loan program provides low-interest financing for projects that improve water quality. Political subdivisions of the state may apply for financing for wastewater treatment plant and collection system improvements, sewer line extensions, combined sewer overflow corrections, system security, nonpoint source projects and measures to manage, reduce, treat, reuse or recapture stormwater.
The Drinking Water State Revolving Fund loan program provides low-interest financing for drinking water projects that protect public health. Political subdivisions, not-for-profit corporations that provide a regional water supply and investor-owned water utility corporations may apply for financing for a variety of projects. These can include drinking water treatment plant and distribution system improvements, as well as new or upgrades to existing storage facilities, system security, source intake structures and wells.
Both state revolving funds feature a subsidized interest rate of 70% below the 20-year municipal market rate the week prior to loan closing and a 0.5% administration fee assessed annually on the outstanding loan balance. The standard loan term is 20 years; however, extended terms up to 30 years may be available for a small amount of additional interest.
The funding programs offer substantial savings to participants and their ratepayers. For example, a recent loan for $5 million saved the borrower more than $1 million in interest compared to the market rate. The department also offers several types of grants to offset loan amounts.
State revolving fund borrowers benefit from low interest rates, as well as personalized assistance from a dedicated department project manager.
To learn more, join us for our webinars:
- State Revolving Fund 101: Learn How Financing with the SRF Will Save Your Ratepayers Money. Information can be found at dnr.mo.gov/content/state-revolving-fund-101.
- State Revolving Fund Tips, Tricks and Hacks: How to Get the Quickest and Best Deal for Wastewater and Drinking Water Projects. Information can be found at dnr.mo.gov/content/state-revolving-fund-tips-tricks-hacks.
For more information regarding first steps toward this or other water funding opportunities, contact the department’s Financial Assistance Center at 573-751-1192, firstname.lastname@example.org, or visit dnr.mo.gov/water/business-industry-other-entities/financial-opportunities/financial-assistance-center.