Top 10 Facts about The State Revolving Loan Funds

The State Revolving Loan Funds (SRFs) operate as finance programs where federal grants are converted into loans for local utilities, which are then repaid and reinvested. The Clean Water SRF (CWSRF) and Drinking Water SRF (DWSRF) provide below-market interest rates (averaging 1.5%) and prioritize projects based on state-specific needs, including green infrastructure and disadvantaged communities. Since 1988, the CWSRF has facilitated over $172 billion in investment across 65,000 projects. The document highlights a critical funding gap, noting that the national need to maintain clean water infrastructure is at least $630.1 billion over the next twenty years.

• The SRFs function as revolving finance programs where federal grants are provided to states, which then issue loans to local utilities; these loans must be repaid to be reinvested into new projects.
• The funds demonstrate a high return on investment (ROI). The Drinking Water SRF (DWSRF) turned $28 billion in federal appropriations into $57 billion since 1997, while the Clean Water SRF (CWSRF) converted $52 billion in federal investments since 1988 into $172 billion.
• SRFs provide significant cost savings through below-market interest rates, averaging 1.5%. For a $20 million loan over 20 years, a community would pay $4.1 million in interest via the SRF compared to $9.5 million on the municipal market.
• The funds support environmental innovation and social equity. Between 2009 and 2020, the CWSRF funded over $8.6 billion and the DWSRF funded $1.9 billion in green projects. Additionally, the DWSRF has allocated 36 percent of its loans to disadvantaged communities since its inception, and the CWSRF provides approximately 31 percent to such communities in recent years.
• There is a substantial and growing need for water infrastructure investment. A 2022 EPA survey estimates the national requirement to maintain existing clean water infrastructure is at least $630.1 billion over the next twenty years, with total needs estimates increasing by approximately 70% between 2016 and 2024.
• Investment in water infrastructure has a positive economic multiplier effect, where every $1 million invested supports 15.7 jobs and every $1 invested generates $2.63 in economic output.

APA

Environmental and Energy Study Institute (n.d.). Top 10 Facts about The State Revolving Loan Funds. https://www.eesi.org/files/SRF_factsheetpager.pdf

Chicago

Environmental and Energy Study Institute. Top 10 Facts about The State Revolving Loan Funds. n.d. https://www.eesi.org/files/SRF_factsheetpager.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Top 10 Facts about The State Revolving Loan Funds |url=https://www.eesi.org/files/SRF_factsheetpager.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitutendtop, author = {{Environmental and Energy Study Institute}}, title = {{Top 10 Facts about The State Revolving Loan Funds}}, institution = {Environmental and Energy Study Institute}, url = {https://www.eesi.org/files/SRF_factsheetpager.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }