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Drinking Water

Indiana's Drinking Water State Revolving Fund (DWSRF) Loan Program provides low-interest-rate financing to construct drinking water infrastructure. As loans are repaid, money is available to be used again for new financings, thus making the program a "revolving fund."

The program's funds originated from capitalization grants from the U.S. Environmental Protection Agency (U.S. EPA). Today, the program still receives such grants, but also uses the revolved repayments along with leveraging in open market to allow more money to be available at a low interest rate for eligible projects.

The DWSRF Loan Program has provided more than $321 million in financing to Indiana communities since the program’s first drinking water loan closing in 1999. Since then, the DWSRF Loan Program has provided over $34 million in savings to Indiana communities. In SFY 2008 alone communities saved more than $8 million by taking advantage of the DWSRF Loan Program's subsidized interest rates.

Political subdivisions (cities, towns and counties), regional water districts, privately-owned and not-for-profit facilities are eligible to apply for financing through the DWSRF Loan Program.

Eligible projects include:

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

Loan terms:

  • The SRF loan is a fixed rate, 20-year loan. However, up to 35-year loan terms are available for qualifying projects.
  • 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 the  applicant's median household income (gathered from current census data) and local user rates.
  • Interest rates can be further reduced by up to 0.5% if the project has Green Project Reserve components or nonpoint source features. In addition, interest rates may be reduced down to 0.0% for qualifying projects that include lead line replacement.
  • Current Rate Information

Loan Approval Process:

  1. Complete and submit a DW SRF Loan Program Application
  2. The Authorized Signatory for the proposed project loan will be contacted by the DWSRF Administrator to schedule a Project Planning Meeting, which can take place either in our offices or in a location chosen by the applicant. During this meeting, the next stages and required documentation will be explained in detail to the applicant and their chosen engineering consultant who will be creating the Preliminary Engineering Report (PER) for submittal.
  3. When the PER is received by SRF, the DWSRF Administrator will score and rank your project on our Project Priority List. The PER will undergo a content review to ensure that all required items are present. A letter will be sent to the applicant indicating whether the PER is complete or if it is missing required items. Click the links to view PER Guidance and tips on the Environmental Chapter content.
  4. When the PER is deemed "complete," the PER will undergo a technical and environmental review by DWSRF Loan Program staff. Staff will coordinate with other applicable agencies regarding any environmental concerns. Before approval, an Environmental Assessment will be posted for a 30-day public comment period or a Categorical Exclusion will be posted for a one-day comment period.
  5. If approved, the DWSRF Loan Program will issue a "PER Approval Letter" to the applicant indicating that the project has been approved to move forward with the next steps towards closing a loan.
  6. After PER approval, the Applicant will concurrently:
    • submit to the SRF Program front-end specifications (satisfying DBE requirements) for bid review;
    • submit to the SRF Program the required Due Diligence Packet; and
    • submit to IDEM plans and specifications along with a construction permit application (if applicable). This will include providing evidence that the Applicant has, or will have by the mutually agreeable date, the required property rights. SRF Program staff will perform a consistency review of the submitted PER with the permit application.
  7. After a Construction Permit is obtained from IDEM, the DWSRF Loan Program will issue bid authorization. The Applicant will follow the contract review process for bidding, contract award, construction, wage rates, etc.
  8. The Applicant closes on the SRF loan.
  9. Project construction commences and the loan is drawn down following the disbursement process. (click here for a Disbursement Request Form in Word.)
  10. When the project is constructed in operating, the Applicant submits a Certificate of Substantial Completion and As-Built Plans for SRF's records.

DWSRF Loan Program Reports

For more information, contact:

Jenn Pence
Clean Water and Drinking Water Program Manager
100 N. Senate Ave., Rm. 1275
Indianapolis, IN 46204
(317) 232-4396