Loan Program

SRF loans are issued for eligible and approved projects.

Public Water System Planning and Final Design Loans

For planning and design work needed to be eligible for public water system construction loans

Environmental Review Assistance – NERWA

For the preparation of categorical exclusion requests

Public Water System Construction Loans

To municipalities and certain privately-owned water systems for construction, repair or improvement of a public water system to comply with state and federal standards and protect public health

Water Source Protection Loans

To municipalities for purchasing land or conservation easements in order to protect public water sources

Municipal Pollution Control

For municipal facilities planning and final design, facility enlargement, refurbishment, general pollution control, storm water projects, and the construction thereof. Also for municipalities to re-loan to homeowners for repair/replacement of their on-site systems

Because the demand for financing exceeds the supply of funds, the DEC has established a priority ranking system for projects requesting funding.

Anatomy of a SRF municipal loan

Municipality files an application with the DEC for project pre-approval & financing


DEC gives the project a priority ranking. If it meets the DEC funding threshold, the loan is recommended for approval to proceed to final application


The municipality then files an joint application for financing with the DEC


Once the application is finalized by DEC, it is forwarded to the VMBB for loan underwriting and final approval


Loan documents are prepared and executed by the municipality and the VMBB


The loan is assigned to the trustee


Payment requisitions are filed with the DEC


DEC approved requisitions are forwarded to the VMBB for payment authorization


VMBB authorizes the Trustee to pay the requisition


At project completion, the DEC audits the project and sets the final loan value


Trustee bills out and collects the loan payments based on the audited loan value