Beyond SRF: Loans, Grants, and Technical Assistance for small water systems

Abstract

Small water utilities face increased costs of providing clean water because of regulation, urbanization, and customer demands. As the need for water financing increases, so does the competition for available capital. Many managers turn first to the Drinking Water State Revolving Fund (DWSRF), which is the largest government environmental infrastructure loan program available. However, a number of other low‐cost loans and grants are available to small water systems that offer a viable funding alternative to the DWSRF. The author identifies several funding alternatives available through entities such as the Rural Business Cooperative Service, the Rural Utilities Service, and Community Development Block Grant Programs. The author also explains that knowledge of the utility's financial health is important and describes how to track basic financial ratios, which can indicate the current financial shape of the utility and help establish the steps needed to build a strong foundation for the future.