SRF Loans - State Revolving Funds
LOW COST FINANCING OPTIONS FOR INFRASTRUCTURE IMPROVEMENTS
The State Revolving Funds (SRF) are federally capitalized loan programs for water and waste water infrastructure projects. The programs offer low-interest financing for waste water treatment and collection, drinking water supply and distribution, water quality, and non-point source infrastructure.
The South Carolina Department of Health and Environmental Control (DHEC) is the designated state agency to apply for and administer the federal capitalization grant as well as administer the technical requirements of the SRF. The SC Water Quality Revolving Fund Authority (SCWQRFA) is the entity responsible for the financial functions of the SRF, including its financial policies and loan agreements with project sponsors. The State Fiscal Accountability Authority serves as the governing body for the SCWQRFA.
The Office of Local Government (formerly with the SC Budget and Control Board) conducts the staff functions for the SCWQRFA. As a result of the South Carolina Restructuring Act of 2014, which became effective July 1, 2015, the Office of Local Government has been transferred to the SC Rural Infrastructure Authority and will continue to manage the financial aspects of the SRF.
In the past 29 years, more than $1.4 billion in SRF loans have been closed, ranging in size from less than $500,000 to $48 million for clean water (sewer) and drinking water projects.
BENEFITS OF A SRF LOAN
• Low-interest rates
• Fixed rate financing
• Extended terms of up to 30 years
• Low closing costs
• Up to 100% financing of all eligible costs
• Availability of deferral periods on principal and interest through construction
• Option to capitalize interest at the end of deferred period
• No debt service reserve for borrowers with at least an underlying "A" rating
• Non tax-exempt financing