Clean Water Revolving Fund (MN) Grant

The Clean Water Revolving Fund in Minnesota provides below-market-rate loans to support communities in upgrading wastewater treatment facilities to meet federal standards. Managed by the Minnesota Public Facilities Authority and the Minnesota Pollution Control Agency, the fund aims to enhance water quality and public health. Eligible applicants include cities and counties, with specific project requirements and loan terms based on population size. The program promotes financial responsibility and environmental compliance, ensuring sustainable water management.

NOTE: Loan applications are due to the PFA and plans and specifications to the MPCA and/or MDH within 6 months of the approval date of the IUP.
The Clean Water Revolving Fund (also called the Clean Water State Revolving Fund) helps communities build or upgrade wastewater treatment plants to comply with discharge standards in the federal Clean Water Act.
Administered jointly by the Minnesota Public Facilities Authority (PFA) and the Minnesota Pollution Control Agency, the fund provides below-market-rate loans to finance the wastewater treatment projects.
Funding
Rates are determined by a market rate index (market scale) or the PFA s bond market rate (Authority scale), which ever is higher, less a 1.0 percent discount approved by the PFA. Borrowers with a service area population under 2,500 may be entitled to additional discounts. The type of security pledged to the PFA, the loan term and principal schedule, and the presence of a significant user will affect the interest rate of the loan.
Loans are amortized up to a maximum of 20 years, or up to 30 years if the average annual residential cost would exceed 1.4 percent of median household income.

Eligibility

Cities, counties, townships, sanitary districts or other governmental subdivisions responsible for wastewater treatment are eligible.Project Requirements:Projects must be included on the Minnesota Pollution Control Agency's Project Priority List and the PFA s Intended Use Plan. Projects must be certified by the MPCA before the PFA may approve a loan.Applicants must demonstrate the financial capacity to repay the loan and that complete financing of the project is in place. Borrowers must issue a general obligation bond to the PFA as security for the loan.Allowable Costs:Allowable costs include site preparation, construction, engineering, equipment and machinery, bond issuance, and certain fees and contingency costs.

Ineligibility

Land costs are not allowable.