Clean Water State Revolving Fund (CWSRF) Loan Program
1. What can the program do for you?
The Clean Water State Revolving Fund, authorized by the Clean Water Act, provides low-cost financial assistance for planning, acquisition, design, and construction of wastewater, reuse, and stormwater infrastructure.
2. Who can borrow?
Eligible applicants for the CWSRF include cities, counties, districts, river authorities, designated management agencies, and public and private entities proposing nonpoint source or estuary management projects.
3. What types of projects can I use the loan funding for?
Financial assistance from the CWSRF can be utilized for:
- wastewater treatment facilities
- collection systems
- wastewater recycling and reuse improvements
- stormwater mitigation
- nonpoint source pollution control
- estuary management project
- 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 120 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 120 basis points off the market's "AA" scale. For equivalency projects the interest rate subsidy is increased to a 155 basis point reduction. Loan terms are available up to 30 years.
Principal forgiveness is available on a limited basis to eligible disadvantaged communities and green projects. The amount of principal forgiveness for a disadvantaged project (up to 70%) is dependent upon the annual median household income and household cost factor for the project area. Entities may receive subsidized green funding (up to 15% forgiveness from green component costs) if their project has eligible components that total 30% of the project's total cost.
5. What phases of the project are eligible for funding?
The CWSRF provides financial assistance for planning, acquisition, design and construction of your wastewater, reuse, and/or stormwater project.
6. How much funding is available?
Whether you are seeking financial assistance for smaller projects or large scale capital improvement projects, the CWSRF is an excellent fit for your system's needs. The CWSRF program has approximately $525 million available on an annual basis but can be increased based on demand.
For current detailed information regarding funds available, please see the CWSRF Intended Use Plan located at the bottom of this webpage.
7. What if an entity requires funding over a period of time for a project?
For entities that have funding needs for a project that may span over several years, the CWSRF has the ability to provide multi-year commitments. This option allows borrowers to receive a funding commitment for the full amount of their project, but close on portions of it over a multiyear schedule.
8. When can I apply for SRF financial assistance?
CWSRF financing is available year round. In order to be invited to apply for funding, entities must submit a completed Project Information Form.
Financial assistance through the CWSRF program requires compliance with applicable rules, policies, and statutes including:
- Submittal of a Project Information Form to be listed in the current Intended Use Plan (see below)
- 1.85% loan origination fee
- National Environmental Policy Act-type environmental review
- Adoption of a Water Conservation and Drought Contingency Plan for all loans greater than $500,000
- Application of Davis-Bacon wage rate requirements
- Compliance with EPA's American Iron and Steel Provisions
- For equivalency projects:
IUP and Loan Process
Where Can I Get More Information?
In order to provide you with a single point of contact at the TWDB, our project implementation staff is organized into six regional project implementation teams. Each team is led by a manager that serves as the primary point of contact for both our existing and future customers. For assistance with the application or any questions related to your project, please look up contact information for your Regional Team.