A row of file folders with a "Loan" label on the tab.

The Clean Water and Drinking Water Small Borrower Loan Program offers low-interest direct loans for wastewater or drinking water system improvements that are necessary for compliance and system sustainability. 

Funding is made available through the State Rural Water and Sewer Revolving Loan funds. The department accepts applications and awards loans throughout the year. For additional information, please review the Small Borrower Loan Program - PUB2306 fact sheet.

Information and Assistance

The department encourages potential applicants to contact the department's Financial Assistance Center for assistance. The center can be reached at 573-751-1192 or by email at fac@dnr.mo.gov.

Who Can Apply

Eligible applicants include cities, towns, villages, counties, public water and public sewer districts serving a population less than 1,000.

Successful applicants are able to demonstrate an ability to repay the loan, preferably with a dedicated revenue source such as water or wastewater user fees.

Eligible Projects and Costs

Eligible projects address improvements to wastewater or drinking water systems. Eligible projects include the following:

  • Wastewater: small projects such as disinfection, lift station repair or replacement, treatment plant repairs, purchasing backup generators, etc. 
  • Drinking water: small projects such as distribution line repair, pumps, plant repairs, purchasing back up generators, etc.

Eligible project costs for wastewater are described in Code of State Regulations 10 CSR 20-4.040(21). Eligible project costs for drinking water projects are described in Code of Federal Regulations 40 C.F.R. § 35.3520

Award Amounts and Match

Funding is limited and is awarded on a first-come, first-served basis and the immediacy of need. The recipient must demonstrate debt coverage through bonds, sales tax or system revenue; however, voter-approved bonds are not required for this loan program.

  • Loan amounts are issued on the basis of actual as-bid costs, up to $100,000 for drinking water and wastewater projects
  • Loan interest rate is 30% of the current market rate at the time of loan closing, which occurs once all program requirements are satisfied, the project is bid and contract awarded
  • A 0.5% annual loan administration fee is also charged through the life of the loan
  • Loan term is up to 20 years or the life of the project

Application Process

The department accepts Clean Water and Drinking Water Small Borrower Loan Program applications throughout the year, as long as funds remain available. To apply for this loan, applicants may submit their completed application by email (preferred) to fac@dnr.mo.gov or mail to the department's Financial Assistance Center. 

Funding priority is given to projects based on relative significance in achieving objectives of the Clean Water Act or Safe Drinking Water Act. Preference is given to recipients receiving funding through other funding programs administered by the department. Applicants seeking joint funding from the Missouri Department of Natural Resources and the Missouri Department of Economic Development’s Community Development Block Grant should submit their application to the Department of Natural Resources’ Financial Assistance Center at the same time a funding proposal is submitted to the Missouri Water and Wastewater Review Committee.