The Local Water Protection Program (LWPP) offers low interest loans through participating lenders to Iowa landowners for projects to control the runoff of sediment, nutrients, pesticides or other nonpoint source pollutants from entering Iowa waters.
The Division of Soil Conservation and Water Quality (DSCWQ) of the Iowa Department of Agriculture and Land Stewardship administers the program through its local Soil and Water Conservation Districts (SWCD). The Iowa Finance Authority (IFA) acts as the financial agent.
Prior to receiving a loan, the landowner must receive project approval from the local SWCD.
LWPP - Eligibility, Terms & Process
Contour buffer strips
Field borders or windbreaks
Filter strips
Grade stabilization structures
Grassed waterways
Terraces
Other practices that are shown to improve or protect water quality
The lender originates a loan with a maximum term of 10 years. The loan amount may not exceed the Natural Resources Conservation Services (NRCS) estimate by more than 10%.
The interest rate charged the borrower will not exceed 3%.
IFA will deposit funds equal to the principal amount of the loan at 0% interest.
The deposit does not guarantee the loan nor is it collateral for the loan. The deposit is only to reduce the interest rate charged to the borrower.
Annually IFA will withdraw from its deposit account an amount equal to the principal repayment of the outstanding loan. As a result, the amount in the deposit account will equal the principal outstanding on the loan.
All costs directly related to the implementation of local water protection projects are eligible. Costs for the purchase of land are not eligible.
The lender must complete the Lender Participation Agreement for Iowa Finance Authority (IFA) and email it to waterquality@iowafinance.com
After receiving the signed Lender Participation Agreement, IFA will activate the lender, and the lender will then have access to the online system to enter the online application.
The borrower works with the local Soil & Water Conservation District (SWCD) on the project. For more information on project eligibility or approval, contact the Urban Conservation Team
The borrower completes the lender's loan application process.
When the loan is approved by the lender, the lender completes the LWPP online application.
After the project has been completed, inspected and certified by the local NRCS staff, the Division of Soil Conservation and Water Quality (DSCWQ) approves the project and loan amount online.
After DSCWQ approves the project, IFA approves the application and the lender receives an email that funds can now be requested.
The lender may request the funds online.
Funds are deposited in the financial institution and the borrower receives his/her loan from the lender.
Approximately a week before the anniversary date of the loan, IFA will send a notice to the lender via email reminding the lender that IFA will withdraw from its deposit account an amount equal to the principal that has been repaid.
The amount in the deposit account and the amount of the outstanding principal on the loan will be the same.
