If you have a water or wastewater project that needs funding, you should consider applying soon to the state’s revolving fund loan program. Eligible projects receive below-market interest rates.
With current interest rates for a 20-year loan, you would save at least $215,000 for every $1 million in project costs over the life of the loan. Some projects qualify for even lower interest rates than 55% of the market rate, meaning even more in savings, plus they may qualify for principal forgiveness, which is a partial grant.
Certain projects are much more likely to receive principal forgiveness, including the following:
· Projects to treat emerging contaminants such as PFAS.
· Lead service line replacements.
· Projects to consolidate wastewater treatment among communities.
· Projects to reduce phosphorus in wastewater.
Timing matters. To secure funding for state fiscal year 2025, the required first step is submitting an Intent to Apply (ITA) by October 31 of this year. ITAs do not take much time or effort to fill out, but in case you have questions, it’s best to start early to avoid missing the deadline. Also, if you hire someone else to do them, the process to authorize them with the state does take a little time.
More information on the state’s revolving fund loan program can be found in our webinar.
R/M can help!
If you’re not sure if a project is eligible, how likely a project is to qualify for principal forgiveness, or how the process works, please contact an expert at R/M today.
