Planning & Design (P&D) Loans provide affordable financial assistance for costs incurred in the planning and design phase of SRF-eligible drinking water or wastewater projects. These loans have 0 percent interest for up to three years and no initiation or servicing fees. In addition, there is no minimum or maximum loan amount.
Project planning and design costs must be directly related to the proposed wastewater, stormwater or drinking water project. Eligible costs include engineering fees, archaeological surveys, environmental or geological studies, and other costs related to project plan preparation. P&D Loans will be rolled into a State Revolving Fund (SRF) Construction Loan or can be repaid when other permanent financing is committed.
Planning & Design Loans enable Iowaβs communities to take the necessary steps to improve their drinking water and wastewater facilities. Since 2005, P&D Loans have funded 760 projects in Iowa totaling nearly $300 million.
P&D Loans - Information
Applications are accepted on an ongoing basis. Please refer to the IUP Dates and Deadlines. Similar to other municipal debt issues, applicants must engage Bond Counsel to initiate proceedings and draft bond documents.
P&D Loans may be used to pay for project planning and design costs directly related to the proposed wastewater, stormwater, or drinking water project. Eligible costs include, but are not limited to, engineering fees, archaeological surveys, environmental studies, fees related to project plan preparation and submission and other costs related to project plan preparation.
Publicly owned treatment works (POTW) and public water systems (PWS) are eligible to apply for a P&D Loan, which may include the following:
Communities
Counties
Conservancy districts and water authorities eligible for water pollution control and drinking water SRF loans
Private and non-profit entities eligible for drinking water SRF loans
Regional sewer/water districts
Construction of treatment plants or improvements to existing facilities
Sewer line extensions to existing unsewered properties
Combined sewer overflow corrections
Storm water projects that have a water quality benefit
Construction of treatment plants or improvements to existing facilities
Water line extensions to existing unserved properties
Water storage facilities
Wells
No interest (0%) or payments due for up to three years
No initiation or servicing fees
No minimum or maximum loan amount
Loans may be rolled into an SRF Construction Loan or repaid when permanent financing is obtained
Planning and design costs must be directly related to SRF-eligible wastewater, storm water or drinking water projects
