Wastewater/Stormwater Loans and Drinking Water Loans

The Illinois Environmental Protection Agency (IEPA) administers the State Revolving Fund (SRF) to support local governments and entities in improving water infrastructure across Illinois. The SRF consists of two primary loan programs: the Water Pollution Control Loan Program (WPCLP) for wastewater and stormwater projects, and the Public Water Supply Loan Program (PWSLP) for drinking water projects. These programs are funded through a combination of federal capitalization grants, state matching funds, bond proceeds, and loan repayments, allowing for low-interest loans to be distributed to eligible applicants. The purpose of these loan programs is to enhance public health and environmental outcomes by funding infrastructure projects that improve the quality and reliability of wastewater and drinking water systems. Eligible projects include the construction of new infrastructure, rehabilitation or upgrades of existing systems, and stormwater management efforts that benefit water quality. The programs aim to serve a wide range of applicants, from major cities to small water districts serving fewer than 1,000 residents. Loans are provided on an annual funding cycle aligned with the State of Illinois fiscal year, running from July 1 through June 30. To be considered for inclusion on the Intended Funding List (IFL), applicants must obtain IEPA planning approval by March 31. Once funds are reserved, applicants must complete loan agreements by December 31 of the same fiscal year. Planning and loan application forms, checklists, and other supporting documentation must be submitted in accordance with the guidance provided on the program's website. SRF-funded projects are required to comply with several federal and state mandates. As of July 1, 2024, all projects must adhere to the Build America, Buy America Act (BABA). Projects exceeding $500,000 in total costs must also comply with Illinois Works Jobs Program Act’s Apprenticeship Initiative, overseen by the Department of Commerce and Economic Opportunity (DCEO). Additionally, loan recipients must comply with Davis-Bacon wage requirements, Disadvantaged Business Enterprise (DBE) goals, and American Iron and Steel (AIS) provisions. The interest rates for the SRF loan programs for the period of July 1, 2025, through June 30, 2026, are as follows: a base rate of 2.16%, a small community rate of 1.62%, and a hardship rate of 1.00%. The reduced rates are only available to projects that meet specific eligibility criteria as outlined in the loan rules. For questions or assistance, applicants may contact the Infrastructure Financial Assistance Section (IFAS) at (217) 782-2027. Key staff include Section Manager Nidhan Singh, Pre-Construction Manager Bill Jankousky, and Post-Construction Manager Amanda Williams. Additional project managers are available by name for support throughout the application and post-loan processes. The IEPA emphasizes a structured and transparent approach to the funding process, with all required forms and instructions readily available through the agency’s website.

Applicants should not advertise for bids until funding is reserved. Projects must comply with BABA, DBE, AIS, and Davis-Bacon.