draft

Maximum Financing . There is no maximum financing amount. Project Readiness. Applicants cannot be offered assistance until they meet program requirements. More information can be found in the Wastewater Engineering Construction Permitting Process Manual 10 . Funding Limitations . Pending loans identified in this IUP do not exceed funds obtainable for the CWSRF program. Extended Financing The Iowa CWSRF can provide extended terms of up to 30 years for any loan as long as the loan term does not exceed the expected design life of the project. The consulting engineer for the project will be required to separate and itemize costs so that a weighted maturity may be calculated for loan repayment. The list of itemized costs and expected useful lives will be required prior to signing of the loan agreement. Municipal Advisor Engagement. Beginning in SFY 2023, borrowers will be asked to identify their Municipal advisor for the project as part of the IUP application. Rate Ordinance . Beginning in SFY 2023, prior to closing a construction loan, applicants must demonstrate that appropriate action has been taken to implement the utility rate recommendations of their Municipal advisor set forth in the 5-year pro-forma cash flow analysis. Public Bidding Compliance Certification . Beginning in SFY 2023, applicants must provide certification evidencing compliance with public bidding law, pursuant to Iowa Code Chapter 26, prior to closing a construction loan. Plan for Efficient and Timely Use of CWSRF Funds The State of Iowa’s Clean Water State SRF uses federal Cap Grant funds as expeditiously as possible. Iowa has been able to use its federal Cap Grant funds in a timely way due to a robust and sustained demand for loans. A number of program features have spurred the growth in loan demand. These include: • Improvements and streamlining in the wastewater construction permitting process, which reduced timelines for project review and approval • Allowing applicants to pursue phased approach for projects to enable individual phased projects proceed timely to construction instead of waiting on approval on a large project • Planning and design loans at 0% interest for three years to provide upfront capital to get projects started and ready for construction and loan closing • Quarterly application process and updates to the Intended Use Plan, which keeps projects in the loan pipeline on a continual basis • Expansion of nonpoint source and green infrastructure programs to include loans for farmers, livestock producers, watershed organizations, and others • Extended term financing, based on project useful life, which allows more utilities to benefit from the CWSRF • Environmental review services to complete assessments of impacts to natural and cultural resources, reducing costs and barriers to participating in the loan program • Focus on marketing, customer and consultant education, and coordination with other funders When Cap Grants are awarded, those funds are drawn down first based on guidance from the U.S. EPA. Loan disbursements are made weekly. Iowa’s CWSRF disbursements averaged approximately $16.7 million per month in 2020. In 2021, the program disbursed an average of approximately $19million per month. Average disbursements for SFY 2022 will be provided in future IUP updates. With a return of $4.66 for every dollar of federal investment (compared to the national average of $2.95), Iowa’s CWSRF is an efficient and effective delivery mechanism for water infrastructure funding.

10 https://www.iowadnr.gov/Environmental-Protection/Water-Quality/Wastewater-Construction/Construction-Permits

IOWA SRF INTENDED USE PLANS 2023 - CWSRF | Page 17