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About the State Revolving Fund (SRF) Loan Programs

The State Revolving Fund (SRF) Loan Programs provide low-interest loans to Indiana communities for projects that improve wastewater and drinking water infrastructure. The Indiana Finance Authority (IFA) administers the SRF Loan Programs, which protect both the environment and public health. Recently, the SRF Loan Programs have also implemented a program to fund nonpoint source projects.

Who is eligible?

  • Cities, towns counties, regional sewer/water districts, conservancy districts and water authorities are eligible for wastewater, drinking water and nonpoint source SRF Loan Program financing.
  • Private and nonprofit facilities are also eligible only for Drinking Water SRF Loan Program financing.

Where does the money come from?

  • The State of Indiana applies to the U.S. Environmental Protection Agency (U.S. EPA) annually for capitalization grants to fund its SRF Loan Programs. To increase the availability of funds, the State leverages its U.S. EPA capitalization grant funds in the municipal bond market. These funds are combined with the U.S. EPA required State match and are then made available to Indiana communities in the form of low-interest-rate loans. For more information on the U.S. EPA's involvement in the SRF Loan Programs, visit the U.S. EPA's Clean Water SRF or Drinking Water SRF Web sites.

What types of projects are eligible for funding? Any project where there is an existing pollution abatement need is eligible for SRF funding.

  • Wastewater projects include:
    • Treatment plant improvements and upgrades;
    • Sewer line extensions to existing unsewered properties;
    • Combined sewer overflow corrections; and
    • Infiltration/inflow projects.

  • Drinking Water projects include:
    • Source intake structures and wells;
    • Treatment plant facilities;
    • Water storage facilities; and
    • Transmission/distribution mains, including water line extensions to existing unserved properties with water quality issues.

  • Nonpoint source projects include:
    • Wetland protection and restoration measures;
    • On-site sewage disposal systems;
    • Best Management Practices for agriculture and stormwater runoff;
    • Riparian Buffers and Conservation Easements; and
    • Wellhead and Source Water Protection measures.

What types of projects are not eligible for funding?

  • Projects that are solely intended for economic development;
  • Projects that are primarily for fire suppression; and
  • Stormwater projects that have no water quality benefits.

How does a community apply for an SRF loan?

  • An eligible entity can submit an application at any time to the SRF PRogram at 100 N. Senate Ave., Rm. 1275, Indianapolis, IN 46204
  • Apply here

What are the loan terms?

  • The SRF loan is a fixed rate, 20-year loan.
  • Interest rates are reset quarterly and are at or below 90% of the average 20-year AAA-rated, general obligation bond Muncipal Market Data. Rates are further discounted based on an applicant's median household income (from current census data) and local user rates.

Does SRF offer grants?

  • Arsenic Remediation Grants are offered to small systems that must come into compliance with the U.S. EPA's new, more stringent arsenic standards.

Where can I get more information about SRF loans? For more information about SRF program administration and the SRF Loan Programs' processes, please contact our office at (317) 232-8655 or click here for a staff directory.

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