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Environmental Loans (EL) Financing options

A municipality has several financing options available from the Clean Water Fund Program (CWFP) and/or the Safe Drinking Water Loan Program (SDWLP). Requests may be made for any of the following types of financial assistance:

Financing project
The municipality has not proceeded with construction and will use loan funds as costs are incurred for eligible project expenses.
Reimbursement of municipality's internal fund
The municipality used internal funds to pay for eligible project costs and would like CWFP/SDWLP financing to reimburse its internal municipal funds. The CWFP/SDWLP may only reimburse a municipal account that is funded by ordinary municipal revenues. This does not include accounts created by the issuance of debt. A borrowed money account, or similar account mandated by Wisconsin Statues for the issuance of debt, cannot be reimbursed. (See Reimbursement Resolution)
Refinancing outstanding debt
The municipality has already taken out a non-CWFP/SDWLP debt to pay some or all of its eligible project costs and would like CWFP/SDWLP funding to refinance this debt. This interim financing or "obligation" must meet the statutory definition of obligation in the Wisconsin Statutes. (See Interim Financing)
Refinancing planned future debt
The municipality plans to take out non-CWFP/SDWLP debt to pay for construction costs; this debt will be refinanced with CWFP/SDWLP financing when construction is complete and when the debt is callable. This interim financing or "obligation" must meet the statutory definition of obligation in the Wisconsin Statutes.
Interest subsidy for small loans
The municipality plans to take out a loan from the State Trust Fund (the Board of Commissioners of Public Lands) and then apply for an interest rate subsidy from the CWFP Small Loans Program (SLP). The SLP provides municipalities a more streamlined, less costly approach to financing wastewater treatment and urban runoff projects that have total eligible project costs of $2,000,000 or less. An interest rate subsidy would help the municipality pay the interest costs on its State Trust Fund loan. (See Small Loans Program (SLP))

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Last revised: Thursday June 29 2017