Officials with the Iowa Finance Authority (IFA) and the Iowa Department of Natural Resources (DNR) recently announced that 22 Iowa communities with current State Revolving Fund loans for water quality projects will save a total of $1.6 million in interest over the remaining life of their loans as a result of the their interest rate being reduced from 3% to 1.75%. The change affects the communities of Defiance, Emerson, Manning and Shenandoah, and results in an interest rate saving cost ranging from $5,313 in Manning, to $101, 450 for Shenandoah.(Defiance will save $9,275 and Emerson $83,088)

The State Revolving Fund is one of Iowa’s primary sources for financing projects designed to improve Iowa’s water quality. Two funds, one for drinking water and one for wastewater and pollution control, have provided low-cost financing to projects in 600 Iowa communities as well as to farmers, watershed groups and others for water quality projects. The program is jointly administered by the Iowa Finance Authority and the Iowa Department of Natural Resources.

IFA Executive Director Dave Jamison said “The State Revolving Fund offers communities low-cost financing, longer repayment cycles and exceptional savings. We’re able to reduce the interest rate for loans that are more than ten years old due to the success of the program and excellent financial management. Lowering interest rates on existing loans has kept nearly $18 million in local economies throughout the state.”  Iowa DNR Director Chuck Gipp said “The State Revolving Fund is a win-win for Iowa communities.This program is a successful partnership between state and local governments and we are proud to play a role in not only assisting communities in completing water quality projects, but also helping them realize substantial savings.”

Besides offering the low interest rates to finance water infrastructure projects, the State Revolving Fund offers other benefits to Iowa communities, such as lower up-front costs and no reserve requirement. For more information on the State Revolving Loan Fund, go to IowaSRF.com