Iowa Finance Authority

Water Quality

The Iowa Finance Authority and the Iowa Department of Natural Resources jointly administer the State Revolving Fund (SRF).

More than 500 Iowa communities and municipalities have recognized the SRF as the best choice to finance the design and construction of quality water infrastructure. Thousands of Iowa landowners, livestock producers and homeowners have also benefited from the State Revolving Fund's unique affordable financing programs.

The following programs are offered through the SRF, detailed information is available at

Legislative Update – Water Quality Bill (SF 512): The bill transfers a portion of the current sales tax on water bills to four programs. Two are administered by IFA and two by Iowa Department of Ag and Land Stewardship (IDALS). More information is available here.

Clean Water Construction Loan
Clean Water Construction Loans assist in financing wastewater treatment, sewer rehabilitation and storm water quality improvements.

Drinking Water Construction Loan
Drinking Water Construction Loans assist in financing water treatment plants or improvements to existing facilities, water line extensions to existing unserved properties, water storage facilities, wells and source water protection efforts.

 Planning & Design Loan
The Planning & Design Loan program is the first choice for many Iowa communities in the early stages of building or repairing water infrastructure facilities. One of the program’s advantages is the special terms of 0% interest for up to three years.

 General Non-Point Source Program
This program assists water quality efforts through low-interest loans. Qualified projects include: restoration of wildlife habitat, stream bank stabilization, urban storm water management, the remediation of storage tanks, water conservation and reuse and wetland flood prevention areas. Low-interest loans can also be made for the water quality components of other projects, such as municipal landfill closure, brownfield remediation, bird sanctuaries and urban storm water.

 On-Site Wastewater Assistance Program (OSWAP)
The OSWAP may provide assistance to Iowa homeowners not served by a public sewer. Homeowners may obtain a low-interest loan through a participating lender for the replacement of inadequate or failing septic systems. According to Iowa law, all septic systems, regardless of when they were installed, must have a secondary wastewater treatment system following the septic tank.

 Livestock Water Quality Program
This program offers low-interest loans through participating lenders to Iowa livestock producers for projects to prevent, minimize or eliminate non-point source pollution of Iowa’s rivers and streams from animal feeding operations. The types of eligible projects include lagoons, manure management structures, equipment, vegetative filters and the development of manure management plans. Assistance is limited to existing facilities for animal feeding operations with less than 1,000 total animal unit capacities.

 Local Water Protection Program
The Local Water Protection Program offers low-interest loans through participating lenders to Iowa landowners for projects to control the runoff of sediment, nutrients, pesticides or other non-point source pollutants from entering Iowa waters. The types of eligible projects include composting facilities, contour buffer strips, field borders or windbreaks, filter strips, riparian forest buffers, terraces, grade stabilization structures, grassed waterways or other practices that are shown to improve or protect water quality.

 Storm Water Loan Program
The Storm Water Loan Program offers low-interest loans through participating lenders for projects to control storm water run-off. Projects range from soil quality restoration, native landscaping, detention basin, ponds or wetland systems, grassed waterways or other practices that are shown to improve or protect water quality.

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Notice Contact

Lori Beary | Community Development Director