Interest Rates

EFC works with you to identify the appropriate financial assistance option or options for a project. EFC financing packages may include one or more funding options. Subject to a credit review, the project score and construction schedule, EFC will determine the appropriate term and type of assistance that may be offered. EFC’s financial assessment will include, but not be limited to, the project budget, municipal bond resolutions, annual financial reports to the Office of the State Comptroller, and other financial information.

Projects can receive both short-term and long-term financing from EFC. Short-term financing is used to pay for design and construction of a project. If a project is very large, it can be financed In phases to meet cash flow needs. EFC may commit financing to a large project in phases or segments over several years. 

The interest rate for a financing is determined by a project's score and rank on the Annual List of the Intended Use Plan (IUP). The Annual List includes a subsidy line and a hardship subsidy line.

Generally, projects listed above the subsidy funding line can qualify for subsidized interest rate financing, and projects above the hardship subsidy line may qualify for interest-free hardship financing.

Projects below the subsidy lines are not eligible for subsidized financing, but may receive market rate financing.

Projects on the Annual List that qualify for hardship financing may receive interest-free financing.

• Draft Hardship Policy for the Clean Water State Revolving Fund 2025 (PDF)
• Hardship Policy for the Clean Water State Revolving Fund Final 2024 (PDF)
• Hardship Policy for Drinking Water State Revolving Fund (Takes you off EFC's website to the Department of Health website)

EFC uses the following to determine hardship: 

• Median household income (MHI)
• Population
• Poverty data from the American Community Survey, published by the US Census Bureau. 

Projects that do not qualify for hardship financing, but are on the Annual List with a score above the subsidy line, may receive subsidized financing. Projects would receive interest-free financing for 50% of the Clean Water State Revolving Fund (SRF) eligible project costs or 33% of the Drinking Water SRF and a market rate financing for the remaining eligible project costs.

Projects that do not qualify for hardship or subsidized financing may receive a low-cost market-rate financing. Market rate financing rates are set at competitive market interest rates.

Short-Term Financing

EFC offers short-term financing for a period of up to five years to provide funding to design and construct State Revolving Fund eligible projects. There are no fees associated with short-term financing. Interest accrues only on balances drawn. Short-term financings can be used to pre-finance costs that will be reimbursed from proceeds from other sources of funding. However, only market rate financing can be used to finance any awarded grants.

Long-term Financing

Long-term financings are generally available for terms of up to 30 years.