Getting an SRF Loan

A detailed description of the State Revolving Fund loan process.

State Revolving Fund Contacts

The Details of Getting an SRF Loan

What you need for Getting an SRF Loan

Applying for SRF Financing

Each June, the Massachusetts Department of Environmental Protection’s Division of Municipal Services (DMS) launches the annual SRF project solicitation for the next calendar year’s financing.  The applications, called Project Evaluation Forms (PEF), along with supporting documentation, are due by the August deadline noted in the solicitation. The information provided in the PEF allows the DMS to rate and rank projects based upon the severity of the public health or environmental problem that is being addressed and the appropriateness of the solution described. Some local governments submit the PEFs themselves, but most applicants engage environmental consulting companies that are familiar with the condition of the local infrastructure and the SRF financing process.

An online application form (PEF) is available for the submittal of project proposals.

The proposals selected to receive SRF financing are published in the Draft Intended Use Plan (IUP), typically in December. For the selected projects, the IUP lists the proponents, project name, and cost. Following a 30-day public comment period and public hearing, testimony is considered and incorporated as appropriate. The draft IUP is finalized and published on MassDEP’s website.  As dictated by Congress, only projects listed on an IUP may receive SRF financing.

See SRF Clean Water Program

See SRF Drinking Water Program

Readiness to Proceed

Readiness to proceed is an important criterion for SRF financing. Proponents must secure local borrowing authorization of the cost of the project by June 30th of the IUP year. Proponents must complete and submit a loan application with buildable plans and specifications by mid-October of the same year. Once a proposal is approved by the DMS, the proponent has 6 months to initiate construction. Proposals that do not meet these deadlines may be removed from the IUP and replaced by a lower ranked project which is ready to proceed.

SRF Administration

The DMS administers the SRF program in partnership with the Massachusetts Clean Water Trust (CWT). The role of the DMS is to oversee the project, while the CWT oversees the financial aspects.  The DMS and CWT conduct an annual Borrower's Meeting.  At the meeting, the two agencies walk borrowers through the SRF administrative processes and allow for Q&A interaction between the agencies and the audience.  The DMS and CWT strongly encourage new borrowers to attend the meeting.

The DMS staff review loan applications to ensure that the applicant has developed a suitable project plan to address the problem described in the PEF. Design plans and specifications, environmental or building permits, and federal program requirements, must be satisfied for the project to receive an SRF loan.  The DMS then certifies the completed application to the CWT, initiating the formal financing offer, and setting the project bidding process in motion.

The CWT subsequently executes interim financing agreements and later the permanent loan documents, then works with the borrowers through the following years to ensure timely repayment and management of accounts.

Bidding and Construction

SRF financed projects are owned and managed locally. The DMS’ oversight role is to ensure that the project is eligible for SRF financing to the maximum extent possible, within the SRF requirements. The DMS reviews project bid documents before they are published, and then informs the borrower that the bid language conforms to the SRF requirements. If there are ineligible costs in the bid, DMS informs the borrower before the local bid is published.

Once the borrower receives suitable bids and one is chosen, a copy of the executed construction contract is submitted to DMS. The amount of the construction services contract, certain administrative costs, and a 5% contingency are combined as the basis for the loan amount. The DMS develops a project regulatory agreement (PRA), committing to the loan amount, the rate, and the term.  The PRA further details the responsibilities of the DMS and borrower to oversee the project during construction, through to completion.

Interim Financing

The CWT has interim financing available for SRF borrowers.  The CWT charges 0% interest on the interim loans, saving the borrowers the interest costs associated with Bond Anticipation Notes. The proceeds of the interim loan are available to the borrower to pay its consultants and contractors in a timely manner.  The DMS and CWT work aggressively to process the requisitions for the interim financing, within five business days of receipt.

Permanent Financing

Approximately once per year, the CWT converts outstanding interim loans into permanent loans for projects at or near completion. The CWT notifies all interim borrowers of the conversion and works with borrowers to formulate the loan repayment schedule and terms. The standard terms are 2% interest for 20 years, though 30-year repayment periods are available with an interest rate of 2.4%.  Nutrient pollution reduction projects may be eligible for 0% interest under state law.


The CWT sends debt service schedules to SRF borrowers with outstanding obligations. The schedule includes semi-annual payments (January and July), for each year the loan is outstanding.

How to apply Getting an SRF Loan

During each funding round, an online application will be available for use at State Revolving Fund Applications & Forms.

Next steps for Getting an SRF Loan

  1. Determine the eligible project costs through the Clean Water SRF Program.

  2. Determine the eligible project costs through the Drinking Water SRF Program.

Contact for Getting an SRF Loan

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