Michigan awarded nearly $1B in SRF loans for water in FY2023

Oct. 18, 2023
The Michigan Department of Environment, Great Lakes and Energy that, in fiscal year 2023, it issued nearly $1 billion in low-interest State Revolving Fund loans to upgrade water infrastructure.

The Michigan Department of Environment, Great Lakes and Energy (EGLE) announced that, in fiscal year 2023, it has issued State Revolving Fund (SRF) funding to 71 projects across the state for water system upgrades.

Detailed information on the low-interest loans issued to communities this year can be found by accessing the SRF visual dashboard. The dashboard also contains information on every loan issued under the SRF programs.

Funds for these low interest financing programs come from the Drinking Water State Revolving Fund and the Clean Water State Revolving Fund — mixes of federal and state dollars dedicated to financing community water projects.

The SRF loans assess interest rates well below market rate and provide the opportunity for communities to secure principal forgiveness — a portion of the loan that does not have to be repaid. In fiscal year 2023, $133 million in loan awards were forgiven for communities with financial hardships.

Demand has outpaced available funding however, with community requests for project financing totaling nearly three times available funding.

“Subsidized interest rates, the ability to offer extended loan terms, and process improvements to remove application barriers have resulted in historic demand on the SRF,” said Paul McDonald, EGLE’s chief financial officer. “These long-term, low interest loans help communities reduce pressure to raise funds quickly for critical upgrades.”