Wastewater/Stormwater and Drinking Water Loans
Illinois EPA's State Revolving Fund offers low-interest loans to improve, upgrade, or build wastewater, stormwater, and drinking water infrastructure, including lead service line replacement, across Illinois.
Funder: Illinois Environmental Protection Agency
Due Dates (Anticipated): September 2026 (recommended submittal) | March 2027 (FNF submission, planning approval, and bid opening deadlines for upcoming cycle)
Funding Amounts: Low-interest loans; base rate 2.16% (FY 2026), small community rate 1.62%, hardship rate 1.00%; no set maximum; loan terms up to 30–40 years (LSLR); principal forgiveness possible for disadvantaged communities.
Summary: Provides low-interest loans for construction, upgrade, or rehabilitation of wastewater, stormwater, and drinking water infrastructure in Illinois.
Key Information: Buy America, Build America Act applies; projects >$500K must meet Illinois Works Apprenticeship Initiative.
Description
The Illinois Environmental Protection Agency (IEPA) State Revolving Fund (SRF) offers low-interest loans for eligible public and private entities to support the design and construction of projects that protect or improve Illinois’ water resources. The program covers a wide range of initiatives, including new construction, upgrades, or rehabilitation of wastewater and drinking water infrastructure, stormwater projects that benefit water quality, and lead service line replacement. Funding is sourced from federal and state contributions, interest earnings, loan repayments, and bond sales, ensuring ongoing support for both large cities and small communities.
