Wastewater/Stormwater and Drinking Water Loans

Promoting water quality benefits by financing cost-effective and environmentally sound wastewater and drinking water infrastructure improvements and other water resource projects.

July 1, 2016 through June 30, 2017 -Wastewater Loan Interest Rate: 1.75%
October 1, 2016 through September 30, 2017 -Drinking Water Loan Interest Rate: 1.64%

Our recommended DBE Policy and Procedures have recently changed 

Loan applicants, their consultants, and bidders are no longer required to advertise in the “Key Newspaper”. Advertisements for prime contractors, subcontractors, and sub-consultants may now be placed in a DAILY, regional newspaper of choice. Ads for subcontractors must still appear a minimum of 16 days prior to the bid opening date.

For more information and options, review the new DBE Guidance Document on this website or call 217-782-2027 to speak with the project manager on call.


Welcome! The Wastewater/Stormwater and Drinking Water loan programs, also called the Illinois Clean Water Initiative (CWI), provide low-interest loans through the State Revolving Fund (SRF). The CWI includes two loan programs: the Water Pollution Control Loan Program (WPCLP) which funds both wastewater and stormwater projects, and the Public Water Supply Loan Program (PWSLP) for drinking water projects. These programs are annually the recipients of federal capitalization funding which is combined with state matching funds, interest earnings, repayment money, and the sale of "AAA" rated bonds to form a perpetual source of financing for infrastructure projects. The term “Revolving Fund” means that interest earned and money repaid, is put back into the program to fund additional projects.

Our programs provide financial assistance to eligible public or private applicants for the design and construction of a wide variety of projects that protect or improve the quality of Illinois’ water resources. We assist applicants with projects that address human health and failing water infrastructure. Eligible projects include:

  • new drinking water or wastewater infrastructure construction;
  • upgrading or rehabilitating existing infrastructure;
  • stormwater-related projects that benefit water quality; and
  • a wide-variety of other projects that protect or improve the quality of Illinois’s rivers, streams, and lakes.
Our historical list of borrowers includes the state’s largest city, as well as, many small communities and water districts with populations less than 1,000 people.

If your community or entity is ready to begin the loan application process, see our SRF Guidance for a list of program requirements or call (217) 782-2027 and ask to speak to one of our project managers.

Program Implementation

SRF program rules require a “full and complete loan application,” including approved planning, a complete financial package, approved design and bid packages, and a variety of executed legal documents necessary for project implementation. If a pre-application for the WPCLP or the PWSLP has been submitted, please be aware that the submission of a pre-application is not an indication that the project will be funded.  

The Illinois EPA will require the submission and approval of a complete financial package, including an enforceable water or sewer ordinance, a user charge ordinance, a certified local debt authorization ordinance, and a dedicated revenue stream that is adequate to assure loan repayment. Consult your attorney to determine an appropriate schedule for the accomplishment of these important local initiatives. The applicable Financial Information Checklist is available in the State Revolving Fund Forms page. Sample ordinances are available on the SRF Guidance Page and the Illinois EPA contact in the Division of Legal Counsel is Vera Herst (217) 782-5544.

For More Information

Please contact the Infrastructure Financial Assistance Section (IFAS) at (217) 782-2027 for additional information. You may reach the following contacts at this number.