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 Division of Municipal Services (DMS) launches a solicitation of proposals for SRF financial assistance for the next calendar year. The applications, called Project Evaluation Forms, along with supporting documentation, are due by the August deadline noted in the solicitation. The information provided in the PEF allows the Division to rate and rank projects based upon the severity of the problem 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 with the SRF financing process.

During each funding round, an online application form will be available for use.

The proposals selected to receive SRF financing are published in the fall on the Draft Intended Use Plan IUP. The IUP lists proponents, project name and cost, for the selected projects. Following a 30-day public comment period, the IUP is finalized, typically with some additional projects added. 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 a central theme for SRF financing. Proponents must secure local borrowing authorization of the cost of the project by June 30 of the IUP year. Proponents must complete and submit a Loan application with buildable plans and specifications, by Oct 15 of the same year. Once a proposal is approved by DMS, the proponent has 6 months to initiate construction. Proposals that do not meet those deadlines may be removed from the IUP, and replaced by a lower ranked project which is ready to proceed.

SRF Administration

DMS administers the SRF program in partnership with the Massachusetts Clean Water Trust. DEP’s role is to oversee the project, while CWT oversees the financial aspects. DMS and CWT conduct Borrowers’ Meetings annually, at the four MassDEP regional offices. At those meetings, the two agencies walk borrowers through the SRF administrative processes and allow for Q&A interaction between SRF and the audience. DMS and CWT strongly encourage new borrowers to attend the session nearest them.

DMS staff reviews Loan applications to ensure that the applicant has developed a suitable project plan which will 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 Division then certifies the completed application to the Clean Water Trust, initiating the formal financing offer, and setting the project bidding process in motion.

CWT will subsequently execute interim financing agreements and later the permanent loan documents, then will work 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. DEP’s oversight role is to ensure that the project is eligible for SRF financing to the maximum extent possible, within SRF requirements. DMS will therefore review project bid documents before they are published, and then inform the Borrower that the bid language conforms to SRF requirements. If there are ineligible costs in the bid, DMS will so inform the Borrower, before the local bid is published.

Once the Borrower receives good bids, a copy of the executed construction contract, the construction services contract, certain administrative costs and a 5% contingency are combined as the basis for the loan amount. DMS will develop a regulatory agreement committing to the loan amount, the rate, and the term; while detailing the Division’s and the owners’ responsibilities to oversee the project during construction and through to completion.

Interim Financing

CWT has interim financing available for SRF borrowers. 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. DEP 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 will notify all interim borrowers of the conversion and will work 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 interest rates inching up to 2.4% Certain projects that are intended to address nutrient pollution are possibly eligible for 0% interest, under state law.


CWT sends debt service schedules to SRF borrowers with outstanding obligations. The schedule includes semi-annual payments, in January and July of 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