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Drinking Water State Revolving Fund
- Drinking Water State Revolving Fund (DWSRF)
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Mark Smith
(406) 444-5325 - Program Contacts
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American Recovery and
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Financial Assistance Application - Who's Eligible & How to Apply
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Safe Drinking Water Act
Statutes: 42 U.S.C. §1452, et seq.
Regulations: 40 CFR, Parts 9 & 35
The Montana Legislature established the Drinking Water State Revolving Fund (DWSRF) Loan Program for Drinking Water projects. The program provides at or below market interest rate loans to eligible Montana entities. The Department of Environmental Quality (DEQ) is the administering agency and assures that the technical, financial, and programmatic requirements of the program are met. The Department of Natural Resources and Conservation (DNRC) issues the State’s general obligation bonds and makes loans to the project borrowers. Cooperatively, DEQ and DNRC administer the Drinking Water State Revolving Fund Loan Program.
MDWSRF Handbook of Procedures
Montana Dept. of Environmental Quality
March 1999, 176 pages.
Copies of this publication are available from: Drinking Water State
Revolving Fund, Montana Dept. of Environmental Quality, 1520 East Sixth
Avenue, Helena, Montana 59620, (406) 444-5325.
Types of Financial Assistance:
Types of assistance currently provided are: direct loans and purchase or refinancing of existing debt.
Financial Requirements:
- Financial capability to properly operate the system and to repay the loan
- Loan secured by a Bond or Note
- Different bonding & security options exist (Revenue, general obligation, SID, RSID, tax increment)
- Revenue Bond requires debt service reserve and coverage of 125%.
- Maintain financial records
Terms: The current interest rate is 3.75% with payment schedules not to exceed 20 years. Drinking Water Projects qualifying as disadvantaged may extend term up to 30 years.
Application: Applications are available from the Montana Department of Environmental Quality. All entities must request that their project(s) be added to the Priority List and Intended Use Plan. This annual process begins in June to identify projects which may need WPCSRF funding for their project in the upcoming year. Early notification by the applicant is essential to get on the priority list, and a project remains on the list until it has been completed regardless of the funding source(s) used to finance the project. Loans will be offered on a first-come basis until demand exceeds available funds. Ultimately, ranking will be based on water quality and/or public health impacts.
Who's Eligible and How to Apply
Funds Available: The SRF loan programs are designed to provide a perpetual source of financial assistance to Montana communities.
