Loan Interest Rates
Clean Water and Drinking Water State Revolving Fund Programs are charged with maintaining a low-cost, long-term, perpetual funding source for communities to construct the infrastructure and implement practices that will deliver safe drinking water to citizens and treat water pollution for a healthy environment.To carry out this mandate, SRF Programs must remain responsive to evolving financial markets. Beginning October 1, 2023, Iowa's State Revolving Fund Loan Programs will utilize Base Interest Rates for Tax-Exempt and Taxable Standard Term SRF Loans (up to a 20-year term) that will be re-calculated and published on the first business day each January, April, July, and October (the "Effective Date").
SRF Construction Loans
Standard Term Loans (up to 20 years)
The Base Interest Rate for tax-exempt loans will be calculated by taking 75 percent of the average Bloomberg BVAL General Obligation Municipal AAA 20-year yield ("BVAL") for the calendar month immediately preceding the Effective Date. For example, the Base Interest Rate effective October 1 will be calculated using the average 20-year BVAL yield for the month of September.
The Base Interest Rate for the taxable portions of SRF projects will be calculated by taking 75 percent of the average Bloomberg BVAL Taxable General Obligation Municipal AAA 20-year yield for the calendar month immediately preceding the Effective Date.Extended Term Loans (21-30 years)
Extended term loans of up to 30 years are available for qualifying projects. The interest rate for projects that qualify and wish to close a loan with extended term financing will be:Loan Term* | Interest Rate |
21-30 years | Base Interest Rate + 1.00% |
* Not to exceed the qualifying average useful life of the project |