Drinking Water State Revolving Fund (DWSRF) Loan Program

DWSRF Program Information Sheet / Effective Management Criteria

DWSRF IUP Solicitation Packet

1. What can the program do for you?

The Drinking Water State Revolving Fund, authorized by the Safe Drinking Water Act, provides low-cost financial assistance for planning, design, and construction of water infrastructure.

2. Who can borrow?

Eligible applicants for the DWSRF include publicly and privately owned community water systems, including nonprofit water supply corporations and nonprofit, non-community public water systems.

3. What types of projects can I use the loan funding for?

Financial assistance from the DWSRF can be utilized for:

  • water treatment facilities,
  • distribution systems,
  • upgrade or replace water infrastructure,
  • address standards from the Safe Drinking Water Act,
  • consolidation of systems,
  • purchasing additional capacity,
  • source water protect projects, and
  • eligible green project reserve components
4. Are loans or grants offered?

Both below market interest rate loans and loan forgiveness (similar to grants) is offered.

For loans the interest rate subsidy is 125 basis points off the entity's underlying credit rating. For example, if an applicant has an underlying rating of "AA" then the interest rate is reduced 125 basis points off the market's "AA" scale. Loan terms range from 20-30 years.

Loan forgiveness is available on a limited basis (approximately $8-$9 million per year) to eligible disadvantaged communities, very small systems, green projects, and urgent need projects.

The amount of loan forgiveness for a disadvantaged project (up to 70%) is dependent on the adjusted annual median household income and household cost factor for the project area. Projects that serve a population of 1,000 or fewer are eligible for up to 100% loan forgiveness ($200,000 maximum). If a project is determined to be of urgent need, the applicant may qualify for 100% loan forgiveness ($500,000 maximum). Entities may receive subsidized green funding (up to 15% forgiveness) if their project has eligible components that total 30% of the project's total cost.

5. What project components can I receive funding to complete?

The DWSRF provides financial assistance for planning, acquisition, design and construction.

6. How much funding is available?

Whether you are seeking financial assistance for smaller projects to large scale capital improvement projects, the DWSRF can assist with your financing needs. Annually the DWSRF program has the capacity to lend approximately $100 million. Larger projects may also be assisted by providing assistance in phases over multiple years.

For current detailed information regarding funds available, please see the DWSRF Intended Use Plan located at the bottom of the DWSRF Loan Program webpage.

7. When can I apply for SRF financial assistance?

The TWDB accepts projects for the CWSRF program on an annual basis - March 1st of each year. However, projects can be added throughout the year until funding is fully utilized.

Special Requirements

Financial assistance through the DWSRF program requires compliance with applicable rules, policies, and Acts including:

  • National Environmental Policy Act-type environmental review. Projects receiving non-equivalency funding TWDB staff members are available to assist applicants in determining the scope of investigation required, preparing reports, and coordinating with environmental regulatory agencies.
  • Adoption of a Water Conservation and Drought Contingency Plan for all loans greater than $500,000 (as mandated under the Texas Administrative Code Title 31 ยง 363, Subchapter A),
  • Application of Davis-Bacon Act wage rates for assistance agreements made in whole, or in part, with Clean Water State Revolving Fund equivalency funds, and
  • Compliance with the EPA's Disadvantaged Business Enterprise program, which requires applicants and prime contractors to follow six affirmative steps in procurement (Guidance and additional information is available).
  • Information regarding the financial assistance application process can be found at: complete a financial assistance application.

IUP and Loan Process

IUP Process Application Process

Where Can I Get More Information?

Please contact, Matthew Schmidt, Program Coordinator (512) 463-8321 or matthew.schmidt@twdb.texas.gov.