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Micro Loans for Water, Wastewater, Solid Waste, and Nonpoint Source Projects

Background (PDF)

The State Revolving Fund (SRF) Program has been offering low interest loans to communities for more than 30 years for water, wastewater, solid waste, and nonpoint source projects.

Overview of Micro Loan Program

Rural municipalities may be eligible to receive low interest Micro loan of up to $500,000 with terms 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.

Eligible communities can apply for a Micro Loan at any time, and applications will be scored and prioritized on a quarterly basis. The level of principle forgiveness depends on the community’s Operations and Maintenance Best Practices (BP) Score and the affordability of the community’s utility rates. Communities may choose to administer their own projects, or they may be administered by the community’s assigned Village Safe Water (VSW) or Alaska Native Tribal Health Consortium (ANTHC) project engineer.

Community Eligibility

To be eligible to apply for Micro Loan funding, a community must be:

  • A municipality; and
  • Eligible for VSW funding according the Village Safe Water Act.

Projects that receive assistance from the tribal set-aside program for Indian Tribes and Alaska Native Villages under the Safe Drinking Water Act §1452(i) are not eligible to receive a Micro Loan.

Before a loan offer will be extended, a community must also demonstrate sufficient technical, financial, and managerial capacity by:

  • Maintaining an Operation and Maintenance Best Practices score of at least 50 total points, including minimum scores in the following categories:
    • Utility Management Training - 5 points
    • Budget - 13 point
    • Revenue - 15 points
    • Payroll Tax Liability - 2 points
    • Workers Compensation Insurance - 2 points

Current Operations and Maintenance Best Practices Scores

Principal Forgiveness

All Micro Loan project applications will be scored and ranked. Subsidy, in the form of principal forgiveness, will be awarded based on project ranking. The amount of subsidy offered for each project will be determined based on the community’s capacity, as demonstrated by the Best Practices Score, and the Affordability of the utility’s current user rates. A High Burden will be assumed for all unserved or underserved communities when considering affordability for the purposes of awarding subsidy. The following table illustrates the subsidy matrix:

subsidy matrix


Funding applications can be submitted at any time, and will be scored on a quarterly basis. Scoring criteria are available at the following links:

Deadlines for quarterly application review and scoring are: February 28, May 31, August 31, and November 30.

PDF versions of the application are available here: Print Only or PDF Fillable (can be saved on your computer)

There are three waysthe application package can be submitted:

  1. In person - Drop off a paper application package, including all attachments, at the SRF Program office in Anchorage
  2. Mail a paper application package, including all attachments, to the SRF Program office
  3. Email a scanned copy of the application and all attachments to the SRF Program office at

Faxes will not be accepted.

Useful Links

Application Links

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