State Revolving Loan (SRL) Program

*** THIS PROGRAM IS CURRENTLY INACTIVE BECAUSE THERE ARE NO AVAILABLE FUNDS ***

The current SRL interest rate is 2.455% (until 31 March 2012).

Overview

To fund drinking water capital projects that protect public health, North Carolina makes loans at one-half of the market rate for a period of up to 20 years.  An administrative or departmental funding fee of 2.50% is charged for this service and made payable upon award of funding according to NCGS 159G-24(a).  The actual term of the loan is determined by the State Treasurer's Office.  All funded projects must address a threat to public health (as described in the 15A NCAC 01J rules that implement the founding statute NCGS 159G).

Since the SRL program is state-funded, the loans are subject to state regulations regarding environmental review and outreach for disadvantaged business enterprises.

Application

The Public Water Supply (PWS) Section receives applications throughout the year and considers those complete applications received as of 30 September. 

If you are interested in the SRL program or other financial assistance offered by the PWS Section, contact the regional office and the funding engineer listed for your county.

All funding programs use the same application, but each program has its own requirements.  The application and the application appendix for the HUC grant program can be found on the forms page.  Follow the instructions in the application and appendix carefully.

Eligibility

Under 15A NCAC 01J .1602(a) applications are ineligible if filed after the award of a construction contract on the project.

Applicants

Under NCGS 159G-31, applicants must be either a local government unit or a nonprofit water corporation to be eligible.

Project Types

Under 15A NCAC 01J .2001(c), the SRL program can fund only the most cost-effective solution to a documented public health problem.  Therefore, the applicant must document both the existence of the problem and the costs of alternatives to address it, typically in the Preliminary Engineering Report, or 'PER.'  In particular, the PER must explicitly discuss the 'do-nothing' or 'no-build' alternative.

Project Costs

The following project costs are specifically ineligible under 15A NCAC 01J .1501(b):

• Administration
• Repairs, and
• Operation and maintenance.

Priority

The PWS Section prioritizes projects first by category and then by the number of priority points awarded as described in 15A NCAC 01J .2001(b).  Project categories are defined in 15A NCAC 01J .2001(a) as follows:

(1) Projects that eliminate by consolidation a public water system demonstrating a lack of technical, financial, or management capacity in accordance with the Safe Drinking Water Act, Sections 1402(b)(1) and 1414(h), and 15A NCAC 18C .0300;

(2) Projects that eliminate compliance problems due to existing violations of the NC Drinking Water Act or anticipated violations based on data and state or federal rulemaking;

(3) Projects addressing source or treatment needs by improving the available water supply or treatment capacity to supply existing users, improving treated water quality, or providing a permanent or emergency interconnection between systems; and

(4) All other public water system projects.

Award of priority points to distinguish between projects in the same category is described in 15A NCAC 01J .1700 and .2000.

Rules and Authority

The statute, NCGS 159G, establishes the SRL program as part of North Carolina’s Drinking Water Reserve. 15A NCAC 01J implements the Drinking Water Reserve.