WIFIA Frequent Questions
EPA answers common questions on the WIFIA program below. Questions and answers are organized into the following categories:
General
- What is the best way to stay informed about the WIFIA program?
- How can I learn more about WIFIA loans and the application process?
- Review the Program Handbook.
- Send your questions to the WIFIA email box (wifia@epa.gov).
- Meet (virtually or in-person) with WIFIA program staff to discuss your project, ask questions, and learn more about the WIFIA application process and financial benefits. Email the WIFIA email box (wifia@epa.gov) to request a meeting.
- Attend an information session or view a recorded webinar.
Eligibility
- Which entities are eligible for WIFIA loans?
- Local, state, and tribal government entities
- Partnerships and joint ventures
- Corporations and trusts
- State infrastructure financing authorities, commonly known as Clean Water and Drinking Water State Revolving Fund (SRF) programs
- What types of projects are eligible for WIFIA loans?
- The WIFIA program can fund development and implementation activities for a wide variety of drinking water, wastewater, and stormwater infrastructure projects, including:
- Drinking water and wastewater treatment plant projects
- Drinking water, wastewater, and stormwater distribution and conveyance system projects
- Nonpoint source management and national estuary program projects
- Construction, repair, and replacement of decentralized wastewater treatment systems
- Stormwater management projects
- Green infrastructure projects
- Source water protection projects
- Enhanced energy efficiency projects at drinking water and wastewater facilities
- Brackish or seawater desalination, aquifer recharge, alternative water supply, and water recycling projects
- Drought prevention, reduction, or mitigation projects
- Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project
- A combination of eligible projects secured by a common security pledge or submitted under one application by an SRF program
- Eligible development and implementation activities are:
- Development phase activities, including planning, preliminary engineering, design, environmental review, revenue forecasting, and other pre-construction activities
- Construction, reconstruction, rehabilitation, and replacement activities
- Acquisition of real property or an interest in real property, environmental mitigation, construction contingencies, and acquisition of equipment
- Capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses and other carrying costs during construction
- The WIFIA program can determine the eligibility of potential projects at any time. To request an eligibility determination, send your request and a short description of the project to the WIFIA email box (wifia@epa.gov).
- The WIFIA program can fund development and implementation activities for a wide variety of drinking water, wastewater, and stormwater infrastructure projects, including:
- Are internal costs associated with the planning, design, and construction (including utility work, etc.) of the WIFIA project eligible project costs?
- Yes, internal costs, including labor costs for in-house staff, are eligible project costs if those costs can be allocated to the WIFIA project. Supporting documentation should evidence the allocation of those internal costs specifically to the project. For example, export of timesheet/accounting system summaries showing the hours/expenses charged to a project code associated with the WIFIA project. If a labor tracking system is not used by the borrower, internal labor costs cannot meet the allocability tests and are not eligible project costs.
Project Selection
- When can a prospective borrower submit a Letter of Interest (LOI)?
- The WIFIA program has funding available on an ongoing basis, and letters of interest may be submitted at any time. A rolling selection process allows EPA to provide year-round access to WIFIA funding and quicker selection decisions to prospective borrowers. In addition, under this iterative, rolling selection process, the WIFIA program can provide technical assistance to prospective borrowers, particularly disadvantaged and small communities, that need support to complete their LOI package.
- The WIFIA program has funding available on an ongoing basis, and letters of interest may be submitted at any time. A rolling selection process allows EPA to provide year-round access to WIFIA funding and quicker selection decisions to prospective borrowers. In addition, under this iterative, rolling selection process, the WIFIA program can provide technical assistance to prospective borrowers, particularly disadvantaged and small communities, that need support to complete their LOI package.
- How are projects selected to receive WIFIA loans?
- EPA announces the amount of funding it will have available and solicits letters of interest from prospective borrowers in a Notice of Funding Availability (NOFA) published in the Federal Register and the WIFIA program website. In the letter of interest, prospective borrowers provide information that EPA uses to determine the project’s eligibility, creditworthiness, engineering feasibility, and alignment with EPA’s policy priorities. In addition, OMB evaluates whether the project complies with budgetary scoring rules. Based on these reviews, EPA selects projects which it intends to fund and invites them to continue to the application process.
- Information about selected projects to date is available in the WIFIA Pending Loans Table.
- Once a project is invited to apply, how long does the applicant have to submit its application and close its loan?
- Selected prospective borrowers have up to one year following their invitation to submit an application. The WIFIA program may grant an extension on a case-by-case basis. Following application submittal, EPA and the applicant have as much time as needed to review materials and negotiate a mutually agreeable term sheet and loan agreement. Typically, WIFIA loans close about four to seven months following receipt of a complete application.
Loan Terms and Requirements
- Does the WIFIA program provide grants or principal forgiveness?
- No, the WIFIA program is only authorized to provide long-term, low-cost loans.
- No, the WIFIA program is only authorized to provide long-term, low-cost loans.
- The WIFIA loan is limited to 49 percent of eligible project costs. Is there a maximum dollar amount for the loan?
- No, there is no specific maximum dollar value for each loan.
- No, there is no specific maximum dollar value for each loan.
- Can projects get both WIFIA and State Revolving Fund (SRF) loans?
- Yes. WIFIA loans can provide up to 49 percent of the financing and the SRF loans could finance some or all of the remaining eligible project costs.
- Yes. WIFIA loans can provide up to 49 percent of the financing and the SRF loans could finance some or all of the remaining eligible project costs.
- How is the interest rate for a loan determined?
- By law, the WIFIA interest rate must be equal to or greater than the yield on U.S. Treasury securities of comparable maturity on the date of execution of the credit agreement. The WIFIA program will estimate the yield on comparable Treasury securities by adding one basis point to the Treasury Direct SLGS Daily Rate (https://www.treasurydirect.gov/GA-SL/SLGS/selectSLGSDate.htm) with a maturity that is closest to the weighted average loan life of the WIFIA credit assistance, measured from first disbursement. The interest rate is locked on the date of execution of the credit agreement.
- By law, the WIFIA interest rate must be equal to or greater than the yield on U.S. Treasury securities of comparable maturity on the date of execution of the credit agreement. The WIFIA program will estimate the yield on comparable Treasury securities by adding one basis point to the Treasury Direct SLGS Daily Rate (https://www.treasurydirect.gov/GA-SL/SLGS/selectSLGSDate.htm) with a maturity that is closest to the weighted average loan life of the WIFIA credit assistance, measured from first disbursement. The interest rate is locked on the date of execution of the credit agreement.
- When must loan repayment begin?
- Repayment can be deferred up to five years following substantial completion of the project. Beyond that, the WIFIA program has flexibility to structure repayment to best match the cashflow of the project and the needs of the borrower. The WIFIA program and borrowers will negotiate the repayment schedule for each project, and it will be included in the credit agreement.
- Repayment can be deferred up to five years following substantial completion of the project. Beyond that, the WIFIA program has flexibility to structure repayment to best match the cashflow of the project and the needs of the borrower. The WIFIA program and borrowers will negotiate the repayment schedule for each project, and it will be included in the credit agreement.
- What are the federal requirements associated with a WIFIA loan?
- Projects receiving WIFIA credit assistance must comply with all relevant federal laws and regulations, including the National Environmental Policy Act (NEPA). Compliance with NEPA and other federal laws and regulations is not a prerequisite for submitting a letter of interest, being invited to apply for a WIFIA loan, or submitting an application. The WIFIA program will review selected projects once they have submitted an application for compliance with federal requirements. EPA will not close a loan and obligate funds for a project prior to completing its NEPA review.
- More information about federal requirements and implementation can be found in the WIFIA Borrower Guide to Federal Requirements.
- Can EPA provide a document with all the required or recommended bid/contract language to comply with the federal requirements imposed by the WIFIA program?
- Yes, required or recommended bid/contract language is available in the WIFIA Borrower Guide to Federal Requirements.