Michigan's Water Pollution Control Revolving Fund, better known as the State Revolving Fund (SRF), is a low-interest loan (2% for 20-year loans and 2.25% for 30-year loans in fiscal year 2019) financing program that assists qualified local municipalities with the construction of needed water pollution control facilities.

Michigan enacted 1988 PA 317, The Clean Water Assistance Act, to establish the SRF which is now codified as Part 53, 1994 PA 451, of the Natural Resources and Environmental Protection Act. It is anticipated that both carry-over and new funding will be made available to subsidize Green Projects in fiscal year 2020. If you have projects with components that address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities, project plans will need to be submitted by July 1, 2019.

Please refer to the Green Project Reserve Guidance below for further information. If you are interested in applying for an SRF loan, a final project plan must be submitted or postmarked on or before July 1 to be considered for funding in the next fiscal year. As of October 1, 2017, the SRF program has provided low interest loans for 582 projects, totaling $4.8 billion.

The Strategic Water Quality Initiatives Fund (SWQIF) is a low interest revolving loan program that allows qualified municipalities to access financing for the construction of needed water pollution control facilities that cannot qualify for SRF assistance. Two types of projects can be financed under the SWQIF, the on site upgrade-replacement of septic systems and the removal of ground water or storm water from sewer leads. This fund was created by the passage of Proposal 2 by Michigan voters in November of 2002. The implementation of the fund is codified as Part 52, 1994 PA 451, of the Natural Resources and Environmental Protection Act.

If you are interested in applying for an SWQIF loan, a final project plan must be submitted or postmarked on or before July 1 to be considered for funding in the next fiscal year. As of October 1, 2017, the SWQIF program has provided low interest loans for 21 projects, totaling $24 million.

For FY 2020, the real discount rate (which does not include an inflation premium) is 0.2% or .002 for a 20-year period.  This rate should be used in SRF and/or SWQIF project planning for cost-effectiveness analysis only.

NEW! Intent-to-Apply (ITA) form (fillable word) for the SRF, and SWQIF loan programs. A community interested in applying for a loan must fill this form out and submit it to DEQ-DWMAD-RevolvingLoanSection@michigan.gov at any time, but by no later than December 31 for consideration for funding the following fiscal year. Following submittal of the ITA, a RLS project manager will follow-up with the community to set up a discussion.