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Indiana Finance Authority

IFA > State Revolving Fund > About SRF About the State Revolving Fund (SRF) Loan Programs

The State Revolving Fund Loan Programs provide low-interest loans to Indiana communities for projects that improve wastewater and drinking water infrastructure. The Indiana Finance Authority administers the SRF Loan Programs, which protect both the environment and public health. Recently, the SRF Loan Programs have also implemented a program to fund nonpoint source projects.

Who is eligible?

  • Cities, towns counties, regional sewer/water districts, conservancy districts and water authorities are eligible for wastewater, drinking water and nonpoint source SRF loans.
  • Private and not-for-profit facilities are eligible only for drinking water SRF loans.

Where does the money come from?

  • The State applies to the U.S. Environmental Protection Agency annually for capitalization grants to fund its SRF Programs. To increase available funds, the State leverages its U.S. EPA capitalization grants in the municipal bond market. These funds are combined with the U.S. EPA required State match and are then made available to Indiana communities in the form of low-interest-rate loans. For more information on the U.S. EPA's involvement in the SRF Loan Programs, visit the U.S. EPA's Clean Water SRF or Drinking Water SRF Web sites.

What types of projects are eligible for funding?

Any project where there is an existing pollution abatement need is eligible for SRF funding.

  • Wastewater projects include:
    • Treatment plant improvements and upgrades;
    • Sewer line extensions to existing unsewered properties;
    • Combined sewer overflow corrections; and
    • Infiltration/inflow projects.

  • Drinking Water projects include:
    • Treatment plant improvements and upgrades;
    • Water line extensions to existing unserved properties; and 
    • Water storage facilities.

  • Nonpoint source projects include:
    • Wetland protection and restoration measures;
    • On-site sewage disposal systems;
    • Best Management Practices for agriculture and stormwater runoff;
    • Riparian Buffers and Conservation Easements; and
    • Wellhead and Source Water Protection measures.

What types of projects are not eligible for funding?

  • Projects that are solely intended for economic development;
  • Projects that are primarily for fire suppression; and
  • Stormwater projects that have no water quality benefits.

How does a community apply for an SRF loan?

  • An eligible entity can submit an application at any time to the SRF Program at 100 N. Senate Ave., Rm. 1275, Indianapolis, IN 46204
  • Apply here

What are the loan terms?

  • The SRF loan is a fixed rate, 20-year loan.
  • Interest rates are reset quarterly and are at or below 90% of the average 20-year AAA-rated, general obligation bond Muncipal Market Data. Rates are further discounted based on an applicant's median household income (from current census data) and local user rates.

Where can I get more information about SRF loans? For more information about SRF program administration and the SRF Loan Program process, please contact our office at (317) 234-1279 or click here for a staff directory.

Printer Friendly SRF Fact Sheet-July 2013