Drinking Water Revolving Loan Fund General Information

The Drinking Water Revolving Fund (DWRF) provides below market rate loans for public water system improvements. The first step for obtaining a loan is to place a project on the Project Priority List. For submission instruction go to Project Priority List and click on Instructions. There is no obligation to obtain a loan if a project is listed. Likewise, there is no guarantee that every listed project will be funded. For a quick overview of the steps for obtaining a loan go to Time Line.

Funding priority goes to projects that:

• protect public health,
• achieve or maintain compliance with drinking water regulations, and
• are for communities in financial need.

Systems eligible for loans include:

Community Water systems that are:

• Publicly owned municipal type systems
• Regional water systems
• Privately owned condominium and manufactured home park systems

Nonprofit Noncommunity Systems such as:

• Schools, day care centers, churches, retreat centers
  

Loans are most often used to replace or upgrade wells, treatment plants, water towers, or distribution systems. Projects have also included consolidating water systems, water meters, computerized monitoring and control systems, and extending public water services to properties with contaminated private wells. Loans may not be used for economic expansion or enhancements primarily intended for fire suppression.

Interest rates are excellent, typically between 1.5 and 3%, but the program is not intended for small loans. In fiscal year 2009 the median loan was $1,500,000. Approximately 50 million dollars can be provided for loans each year.

Two state entities work together to provide this program. They are the Minnesota Department of Health (technical engineers), and the Minnesota Public Facilities Authority (bankers). Funding is provided by the U.S. Environmental Protection Agency (80% initially), the State of Minnesota (20% match), and loan repayments (hence the revolving fund concept).

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For questions about this page, contact the Drinking Water Protection Program: health.drinkingwater@state.mn.us or 651-201-4700. For specific Drinking Water questions, please use the contacts listed on our Contact Us page.