DES MOINES – The Iowa Finance Authority and the Iowa Department of Natural Resources Thursday (today) announced that 30 municipalities with current State Revolving Fund loans for water quality projects, will save a total of more than $7.6 million in interest over the remaining life of their loans as a result of their interest rate being reduced from 3% to 1.75%. Among the communities, is Atlantic and Bedford. Atlantic will realize a savings of $922,300. Bedford’s savings amounts to $70,25.

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 nearly 700 Iowa communities in addition 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. Iowa Finance Authority Executive Director Debi Durham says “This rate reduction is possible due to the success of the State Revolving Fund and excellent financial management.”

Durham said also, “The State Revolving Fund has saved Iowa communities a total of nearly $50 million in interest payments through interest rate reductions for loans that are more than ten years old. This is $50 million that municipalities have been able to invest in other priorities to create opportunities for their residents, community and businesses to thrive.”  Besides offering communities low interest rates to finance water infrastructure projects, the State Revolving Fund offers other benefits, such as lower up-front costs and no reserve requirement.

For more information on the State Revolving Loan program, visit IowaSRF.com.