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, design, and construction of wastewater infrastructure.
2. Who can borrow?
Eligible applicants for the CWSRF include cities, counties, districts, river authorities, other public bodies, 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,
- storm-water pollution control,
- non-point source pollution control,
- estuary management project, 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 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 range from 20-30 years.
Loan forgiveness is available on a limited basis (approximately $5-$7 million per year) to eligible disadvantaged communities and green 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. 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 CWSRF provides financial assistance for planning, acquisition, design and construction of your wastewater project.
6. How much funding is available?
Whether you are seeking financial assistance for smaller projects to large scale capital improvement projects, the CWSRF is an excellent fit for your system's needs. The CWSRF program has approximately $325 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 the CWSRF 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.
8. Where can I find more information regarding the financial assistance application?
Information regarding the financial assistance application process can be found at: complete a financial assistance application.
Financial assistance through the CWSRF program requires compliance with applicable rules, policies, and Acts including:
- Submittal of a Project Information Form (PIF) to the current Intended Use Plan.
- 1.85% loan origination fee.
- Applicants may be required to segment funding depending on the project's readiness to proceed to construction.
- 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 §363, Subchapter A).
- Application of Davis-Bacon Act wage rates for assistance agreements made in whole, or in part, with CWSRF funds.
- For equivalency projects:
- National Environmental Policy Act-type environmental review. TWDB staff members are available to assist applicants in determining the scope of investigation required and to provide guidance.
- 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).
- EPA's Guidance and additional information is available
- Compliance with EPA's American Iron and Steel Provisions.