Safe Drinking Water Revolving Loan Fund

The Safe Drinking Water Revolving Loan Fund (SDWRLF), known nationally as the Drinking Water State Revolving Fund, is a loan program to fund planning, design, and construction of drinking water facility improvements. The program is implemented through a partnership between the Oregon Health Authority (OHA), Drinking Water Services and Business Oregon.

In addition to SDWRLF loans for infrastructure improvements, the program supports water system planning efforts under Sustainable Infrastructure Planning Project (SIPP) forgivable loan funding. SIPP provides forgivable loan awards up to $20,000. To apply for SIPP funds, fill out and submit the SIPP application found in the Resources sidebar.

Who Can Apply?

Owners of water systems that provide service to at least 25 year-round residents or systems that have 15 or more connections (or a nonprofit with 25 or more regular users). Owners can be a nonprofit, private party or municipality, but systems cannot be federally owned or operated.

What Can the Money Be Used For?

A funded project must solve an existing or potential health hazard or noncompliance issue under federal/state water quality standards. The following are the main types of eligible activities:

  • Engineering, design, upgrade, construction or installation of system improvements and equipment for water intake, filtration, treatment, storage, transmission
  • Acquisitions of property or easements
  • Planning, surveys, legal/technical support and environmental review
  • Investments to enhance the physical security of drinking water systems, as well as water sources
  • Purchase of water rights needed to address an imminent public health threat

Money cannot be used for:

  • dams (unless a deviation is secured, contact us to learn more.)
  • ongoing operations
  • projects primarily for fire suppression
  • projects that do not directly address (most severe) noncompliance/health risks
  • future community growth beyond conventional population projections over the life of the project

Loan Information

SDWRLF loan amount: The program provides up to $6 million per project (more with proper additional approval) with the possibility of subsidized interest rate and principal forgiveness for a Disadvantaged Community.

Terms: The standard loan term is 30 years or the useful life of project assets, whichever is less. Interest rates as low as 1% may be available depending on median household income and affordability factors.

How to Apply

Step 1: Letter of Interest. An owner of a water system must submit a Letter of Interest. Letters of Interest can be submitted at any time. Eligible projects are rated and ranked for inclusion in the Intended Use Plan (IUP), which is provided each year to the U.S. Environmental Protection Agency (USEPA).

Step 2: Final Application. The OHA rating and ranking process creates a project funding priority list that determines the projects that are of the greatest priority for funding. Funding availability and readiness to proceed are a factor in the Business Oregon decisions to invite applications.


Program information and procedures are subject to change. For more in-depth information please consult the Drinking Water Handbook and to make sure that the proper steps are being taken to assess the viability of your project, please contact the Regional Development Officer for your area.