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Helping Montana Communities
Montana communities and water and sewer districts use SRF loans to repair or build wastewater and drinking water systems. Growing communities need low-interest loans to make additions and improvements to their water and wastewater infrastructures to accommodate new housing and businesses, especially in oil and gas drilling areas.
Federal grant money combined with state match funds create the low-interest loan programs. Repaid or “Recycled” funds go back into the programs to fund loans. The state match share of funds for wastewater and drinking water comes from the sale of state general obligation bonds.
Federal grant money combined with state match funds create the low-interest loan programs. Repaid or “Recycled” funds go back into the programs to fund loans. The state match share of funds for wastewater and drinking water comes from the sale of state general obligation bonds.
Loan Programs
The Montana Legislature established two State Revolving Fund (SFR) Loan Programs that provide at or below market interest rate loans to eligible Montana entities. These programs are funded with capitalization grants from the U.S. Environmental Protection Agency and are matched by 20% with State issued general obligation bonds. Combined, these two sources of funds create the "state revolving fund" from which loans are made and borrower repayments revolve to provide loans for future infrastructure projects.
Agency Partners
DNRC and the Montana Department of Environmental Quality co-administer the SRF programs. DEQ provides support and guidance to the technical side of the projects and DNRC provides the financial support. The Department of Environmental Quality (DEQ) is the administering agency and assures that the technical and programmatic requirements of the program are met. The DNRC issues the State's general obligation bonds and makes loans to the project borrowers. Cooperatively, DEQ and DNRC administer the State Revolving Fund Loan Programs.