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, authorized Indian tribal organizations, 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
disaster recovery

4. Are loans or grants offered?

Both below market interest rate loans and principal forgiveness (similar to grants) are offered.

For SFY 2022, for loans the interest rate will be a percentage reduction from the Thomson Reuters Municipal Market Data (MMD) rate adjusted for yield to maturity that is applicable to the entity’s rating, with non-rated entities using the Baa rate, as follows:

(a) Equivalency projects: 40% reduction

(b) Non-Equivalency projects: 35% reduction

Principal forgiveness is available on a limited basis to eligible disadvantaged communities, small/rural disadvantaged, green projects, emergency preparedness and urgent need. The amount of principal forgiveness for a regular 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. Emergency preparedness principal forgiveness may be available for the preparation of an emergency preparedness evaluation/audit plan. It would determine future needs to ensure compliance with statutory and regulatory standards of emergency operations that directly affect operation of a public water system during an extended power outage from severe weather that impacts the system. The maximum amount available for a public water system is $75,000. If a project is determined to be of urgent need, the applicant may qualify for 100% principal forgiveness ($500,000 maximum unless a disadvantaged community, which has up to a $800,000 maximum depending on the percentage category).

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. For State Fiscal Year 2022, at least $250 Million is available under the CWSRF for all financing options including $28.6 Million in principal forgiveness.

For current detailed information regarding funds available, please see the CWSRF Intended Use Plan located on the upper right side of this webpage.

7. When can I apply for SRF financial assistance?

In order to be invited to apply for funding, entities must submit a completed Project Information Form. Typically, Project Information Forms are submitted each year by a deadline in March to be on the initial Intended Use Plan project priority list.

Special Requirements

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
1.75% loan origination fee
National Environmental Policy Act-type environmental review
Adoption of a Water Conservation and Drought Contingency Plan for all financial assistance greater than $500,000
Application of Davis-Bacon wage rate requirements
Compliance with EPA's American Iron and Steel Provisions
For equivalency projects:
- 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).
- Additional steps when procuring architecture and engineering services

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.