State Revolving Loan Funds

Loans are usually made at low (sometimes even no) interest. Although most loans have gone to local governments, they can also go to businesses or nonprofit organizations. Payback periods for loans extend to 20 years.

Most of the CWSRF dollars loaned to date have gone for construction expansion, repair, or upgrading of municipal sewage collection and treatment systems. But CWSRF loans can also be made for (1) NPS control projects consistent with a state, territorial, or tribal Section 319 program, or (2) implementation of a management plan developed under the National Estuary Program.

As of the end of 2001, over 30 CWSRFs had lent over $1.4 billion for nonpoint source projects. Such projects include loans to:

• Homeowners for repair and upgrade of septic systems
• Land trusts for purchase of sensitive lands/easements
• Purchase and restoration of degraded wetlands
• Dry cleaners to clean-up soil and ground water contamination on brownfields
• Farmers for equipment and structures to minimize runoff from fields

Managers of SRFs must comply with several basic requirements:

• Protect the capital (principle) in the fund -- ensure funds circulating in the CWSRF do indeed "revolve" and not diminish over the long run.
• Develop "intended use plans" -- develop project lists of upcoming loans in the next fiscal year.
• Provide for public participation and comment on intended use plans.
• Create a NEPA-like process, whereby the environmental impacts of projects getting loans are analyzed and options are considered.

More information about the CWSRF