Strategic Water Quality Initiatives Fund

Purpose: The Strategic Water Quality Initiatives Fund (SWQIF) provides low-interest loans for water pollution control projects involving the on-site upgrade or replacement of failing septic systems or for the removal of groundwater or storm water from sanitary or combined sewer leads.

Goals of the Program: To assist municipalities in funding wastewater treatment improvements that cannot qualify for assistance from the SRF.  

Eligibility: Any city, village, township, county, or related authority as defined in Section 5301(h) of Part 53, Act 451 of the Public Acts of 1994.

Criteria: The requirements for this program are identified in Parts 52 and 53, Act 451 of the Public Acts of 1994, as amended, as well as Administrative Rules (R323.951- ­R323.965).  Primarily, applicants must present environmentally sound, cost effective water pollution control projects which are drawn from Project Priority Lists (PPLs) administered by EGLE.

Application Process:

  • A municipality is first ranked on the PPL by submitting a project plan to EGLE.
  • The municipality is included in the annual fundable range according to priority ranking.
  • The municipality submits plans and specifications for EGLE review.
  • The municipality submits an application for assistance in accordance with the quarterly funding schedule.
  • The municipality receives financial assistance upon satisfying program requirements through the application process.

Nominating Procedures:  After submittal of a project plan and the project's ranking on the PPL, projects in the fundable range are notified.  A schedule is then developed that will lead to completion of the environmental review, submission of an application, award of an Order of Approval, and closure of the loan.

Deadlines: The deadline for submission of a project plan to be included on the annual PPL for loan funding is July 1.  The deadline for the application for financial assistance is negotiated for each project dependent upon which quarter they will receive a binding commitment.

Timelines: The time period may run approximately eight months to several years from the time the project plan is submitted to receipt of assistance.  From the time of actual application to receipt of assistance, the process may take as little as three months.  Much is dependent upon available funds and the quality of municipal submissions.

Dollar Amount(s) Available (Min or Max): It is estimated $10-20 million in loan funds will be available annually.

Required Match: No local match is required.

Source(s) of Funds: The fund is capitalized with proceeds (10%) from the sale of Great Lakes Water Bonds, which were authorized by the passage of Proposal 2 in November 2002.

Authority: Parts 52 and 53, Act 451 of the Public Acts of 1994.

Responsible Division/Office Contact: Finance Division, Water Infrastructure Financing Section, Karol Patton, Acting Supervisor, 517-284-5433.

Phase-out/Expansion/Changes for Next Fiscal Year: Since the loan fund "revolves," lending capacity will remain even if new state capitalization ceases.

Related ProgramsState Revolving Fund and the Stormwater, Asset Management, and Wastewater Program.

Request for Proposals: Municipalities can apply for loan funding at any time by submitting a project plan.