The State Revolving Fund (SRF) provides loans and grants to municipalities for approved drinking water, wastewater and storm water projects. The SRF is co-managed by the Department of Environmental Conservation (DEC) and the Vermont Municipal Bond Bank (VMBB). The SRF program is funded with appropriations from the US Environmental Protection Agency/State of Vermont and revolving loan repayments.
The DEC is responsible for reviewing the proposed project engineering, construction budget, authorizing payment requisitions and performing a final audit of the financed project.
The VMBB manages the SRF cash accounts, the SRF accounting and underwrites loans (performs borrower credit reviews) and grants . A trustee is used to manage project payment requisitions and loan repayments.
SRF loans are made available at below market interest rates because of the Federal and State support. Under certain conditions, the SRF also provides outright grant awards and loan forgiveness.
SRF loans are long-term in nature and so in most cases require voter approval by Australian ballot.