MoDNR to offer millions in savings in water project financing

JEFFERSON CITY — The Missouri Department of Natural Resources’ (MoDNR) Financial Assistance Center (FAC) 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.

Applications submitted by March 1, 2022, will receive top priority for loan and funding in the next fiscal year.

State Revolving Fund borrowers benefit from low-interest rates, as well as from personalized assistance from a dedicated department project manager.

About the Clean Water SRF

The Clean Water State Revolving Fund loan program provides low-interest financing to construct wastewater projects and other projects that improve water quality.

Counties, incorporated cities and towns, and regional water or sewer districts may apply for financing for various projects. They include 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.

About the Drinking Water SRF

The Drinking Water State Revolving Fund loan program provides low-interest financing to construct drinking water projects that protect public health.

Some entities may be eligible for financing for a variety of projects. These include political subdivisions, not-for-profits offering a regional water supply, and investor-owned utility corporations.

These projects can include drinking water treatment plant and distribution system improvements and storage facilities. Additional projects include system security, source intake structures, and wells.

Political subdivisions and not-for-profit corporations will receive first priority for funding.

MoDNR SRFs to save municipal governments, taxpayers money

Both SRFs feature a subsidized interest rate of 70 percent below the 20-year municipal market rate the week prior to loan closing. Additionally, the funds have a 0.5 percent 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 savings the programs offer to participants and their ratepayers are substantial. For example, a recent loan for $5 million saved the borrower $1 million in interest compared to the market rate.

The Department also offers several types of grants to offset loan amounts. Affordability grants are available to systems that demonstrate financial need. Other grants are available for systems wishing to consolidate or regionalize with another entity and for systems addressing certain water quality improvements. Moreover, these improvements may include upgrades to comply with permit limits, build green infrastructure, and more.

MoDNR to hold webinars on SRF programs

To learn more, join MoDNR for their upcoming webinars:

State Revolving Fund 101

Learn how financing with the SRF will save your ratepayers money. Information can be found here.

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 here.

For more information regarding first steps toward this or other water funding opportunities, contact the FAC at (573) 751-1192. Additionally, you can contact the FAC via email at [email protected], or visit the link here.