Submitting a project questionnaire is the first step in applying for a SRF loan. If you have questions about project eligibility, contact the SRF Program before submitting a questionnaire.

Questionnaires are accepted at any time through DEC Water Online Application System (OASys) and are reviewed by a scoring committee three times per year. Questionnaires are evaluated and assigned a score based on established criteria. After the SRF Program reviews questionnaires, projects are added to the Project Priority List in rank order.

The submittal deadline for questionnaires are listed below:

• February 28
• June 30
• October 31

Projects must be on the Project Priority List before a loan application can be submitted. Loan applications are accepted through OASys. The Loan Application Checklist summarizes the application requirements.

Rural municipalities that are eligible for funding under the Village Safe Water Act may also be eligible to receive a low interest Micro Loan of up to $500,000 with a repayment term of up to 30 years and significant subsidy in the form of principal forgiveness. Loan funds may be used for water, wastewater, solid waste, and nonpoint source projects. Eligible project types include planning, design, construction, and energy efficiency improvements. A Micro Loan application form is available in the Forms and Guidance Library.

As part of each loan application review, the SRF Program also conducts a Financial Capacity Assessment to ensure that the borrower has the capacity to repay debt as well as operate and maintain the system. The SRF Program also conducts an environmental review for construction projects.

The SRF Program prepares a loan agreement after the loan application is reviewed. The loan agreement is sent to borrower for review and signing. The SRF Program schedules a loan kick-off meeting to review the loan terms and conditions with the borrower.

Borrowers are required to award any construction contract estimated to equal or exceed $100,000 through a competitive bidding process. If the construction contract is expected to be less than $100,000, contact the SRF Program to discuss the solicitation process.

Borrowers are encouraged to send the invitation to bid documents to the SRF Program in advance of the bid opening in order to ensure that all required information is included.

Contracts and change orders will also be reviewed by the SRF Program.

Quarterly project status updates are required throughout the active period of the loan from the execution of the loan agreement until project completion. The SRF Program may inspect the project during construction.

Disbursements will only be made against eligible project costs incurred for the project. Disbursement requests are submitted online through OASys and must be accompanied by invoices and proof of payment.

The “initiation of operation” is a date indicating when the newly constructed project will begin to operate. This date is important in determining the dates of subsequent milestones.

All construction projects have performance standards. During the first year of operation, the borrower will closely monitor project performance and notify the SRF program of any problems that may interfere with a positive certification of project performance.

One year after the project’s initiation of operation date, the SRF Program will collect the project performance certification statement. If the certification is negative, the borrower must submit a corrective action plan. The SRF Program will be involved until a positive performance certification is attained.

Loan repayment begins within 12 months of the initiation of operation date.