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State Revolving Fund (SRF)

General Information

What is the State Revolving Fund?

The Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF) are low interest loan programs intended to finance public infrastructure improvements in Alabama.

The programs are funded in part with the proceeds of tax-exempt bond issues by the Alabama Water Pollution Control Authority and the Alabama Drinking Water Authority. Both Authorities are composed of the Governor, Lieutenant Governor, Speaker of the House, Finance Director and the Director of the Alabama Department of Environmental Management.

ADEM administers the CWSRF and DWSRF, performs the required technical/environmental reviews of projects, and disburses funds to recipients.

What are the benefits of an SRF loan?

Among the many benefits of the SRF are:

  • The SRF has a loan interest rate about 1.5%-2% less than the prevailing municipal bond rate available to "AAA" rated municipalities;
  • Fixed interest rate with a 20-year payback;
  • Loan repayment does not begin until construction completion date (capitalized interest accrues);
  • The loan recipient is not required to pay any ongoing trustee expenses or rebate expenses normally associated with a local bond issue.

What projects qualify for funding?

Projects that strengthen compliance with Federal and State regulations and/or enhance protection of public health are eligible for consideration to receive an SRF loan. If a project qualifies, the engineering, inspection, and construction costs are eligible for reimbursement. Among the projects which qualify for funding are:
  • Publicly owned water or wastewater treatment works;
  • Sewer rehabilitation;
  • Interceptors, collectors, and pumping stations;
  • Drinking water storage facilities;
  • New/rehabilitated water source wells; and,
  • Water transmission/distribution mains.

Drinking water projects that are primarily intended to serve future growth are not eligible. In addition, there is a minimum loan amount of $300,000 for DWSRF projects.

Who should apply for an SRF loan?

Any local governmental unit, including water boards and authorities, may apply for SRF financing. An ability to repay must be substantiated along with meeting other specified standards.

How does my organization apply?

In order to apply for an SRF loan, a pre-application must be submitted by December 31. For those applicants selected for funding, a full application must be received by the following May 1. Loan funds are typically available for disbursal in December of each year.

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Contact Information

ADEM
Attn: Loan and Operator Certification Section
Post Office Box 301463
Montgomery, Alabama 36130-1463

Telephone Number : (334) 271-7796
Fax Number: (334) 279-3051
Email Address: ahw@adem.state.al.us

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Since April 8, 2002