STATE REVOLVING FUND

Michigan's Water Pollution Control Revolving Fund, better known as the State Revolving Fund (SRF), is a low 2.5% interest loan 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.

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. Through 1st Quarter of Fiscal Year (FY) 2009, the SRF program has provided low interest loans for 331 projects, totaling $3.2 billion.

STRATEGIC WATER QUALITY INITIATIVES FUND

The Strategic Water Quality Initiatives Fund (SWQIF) is a low 2.5% 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.

Through 1st Quarter of Fiscal Year (FY) 2009, the SWQIF program has provided low interest loans for 7 projects totaling over $7.4 million.

The discount rate that should be used in SRF or SWQIF project planning beginning FY 2010, should be 4 3/8% or .04375.