Wastewater/Stormwater and Drinking Water Loans

images of water treament, water pipes and water sources


July 1, 2020 through June 30, 2021

Wastewater Loan Interest Rate: 1.35%

Drinking Water Loan Interest Rate: 1.35%

Effective October 2019, the Illinois SRF Loan Rules were updated.

Wastewater Loan Program Rules

Drinking Water Loan Program Rules

The following forms have changed. Please verify you are using the most recent version before submitting.

     05/07/2020 - Loan Applicant Environmental Checklist and Certification Form

     11/21/2019 - Bidding Review Certification and Checklist for Construction Contracts

     11/05/2019 - Plans-Specs Checklist and Front-end documents (only the checklist have changed)

     08/15/2019 - Funding Nomination Forms (formerly known as Pre-applications) and Instructions 

Welcome! The Wastewater and Drinking Water loan programs provide low-interest loans through the State Revolving Fund (SRF). The SRF includes two loan programs: the Water Pollution Control Loan Program (WPCLP) which funds both wastewater and storm water projects, and the Public Water Supply Loan Program (PWSLP) for drinking water projects. These programs are annually the recipients of federal capitalization funding which is combined with state matching funds, interest earnings, repayment money, and the sale of bonds to form a source of financing for infrastructure projects. The term “Revolving Fund” means that interest earned, and money repaid, is put back into the program to fund additional projects.

Our programs provide financial assistance to eligible public or private applicants for the design and construction of a wide variety of projects that protect or improve the quality of Illinois’ water resources. We assist applicants with projects that address human health and failing water infrastructure. Eligible projects include new drinking water or wastewater infrastructure construction; upgrading or rehabilitating existing infrastructure; storm water-related projects that benefit water quality; and a variety of other projects that protect or improve the quality of Illinois’s rivers, streams, and lakes. Our historical list of borrowers includes the state’s largest city, as well as, many small communities and water districts with populations less than 1,000 people.

If your community or entity is ready to begin the loan application process, see our SRF Guidance page for a list of program requirements or call (217) 782-2027 and ask to speak to one of our project managers.

Program Implementation

Prior to receiving a loan, a “full and complete loan application,” including approved planning, a complete financial package, approved design and bid packages, and a variety of executed legal documents necessary are required. Approval of a complete loan application includes an enforceable water or sewer ordinance, a user charge ordinance, a certified local debt authorization ordinance, and a dedicated revenue stream that is adequate to assure loan repayment. Consult your attorney to determine an appropriate schedule for the accomplishment of these requirements. Sample ordinances are available on the SRF Guidance Page and the Illinois EPA contact in the Division of Legal Counsel is Stephanie Flowers (217) 782-6494.

Funding Cycle & Availability of Funds

The State Revolving Fund (SRF) yearly cycle is based on the State of Illinois fiscal year, which starts July 1st and ends June 30th. Because funding is limited, projects with approved planning are scored and ranked to prioritize which ones will receive loan program resources during a specific fiscal year. The Intended Funding List (IFL) period is the first one-half of the fiscal year (July 1st to December 31st). To qualify for inclusion on the IFL, a project must have submitted a funding nomination form (FNF) and obtained planning approval by March 31st. To start construction during the IFL period and utilize reserved funding, the project must be on the IFL. Once a project is listed in the IFL, funding is reserved for it during that fiscal year; however, delays may cause projects to be “bypassed”.

The bypass period is the second one-half of the fiscal year (January 1st to June 30th). If any money reserved for the IFL projects is not used by December 31st, it may become available for other projects that are ready to proceed. During the bypass period, funding is not guaranteed to be available or reserved for a project, unless a letter of commitment (LOC) is received from IEPA. To receive a LOC, the loan applicant must have completed all program requirements except for bidding. After a LOC is obtained for a project, funds are reserved and bidding may occur.

If a project is unable to obtain a loan agreement during the bypass period (January 1st to June 30th), it may qualify for funding that will be available during the next IFL period, that starts July 1st. Loan applicants are advised not to advertise their projects for bids until money is reserved. Loan applicants attempting to fund their project during the bypass period (starting January 1st), should contact their IEPA project manager as early as possible, to discuss both the availability of bypass funding and receiving a LOC.

Funding Cycle Diagram

For more information regarding the funding cycle, see the Funding Cycle Explanation Document. This document includes significant loan program dates and pertinent IEPA loan program regulatory sections.

For More Information

Please contact the Infrastructure Financial Assistance Section (IFAS) at (217) 782-2027 for additional information. You may reach the following contacts at this number.