WIFIA Loan Process

Phase 1: Project Selection

Each year, the WIFIA program receives an appropriation that replenishes the amount of funding that can be made available to prospective borrowers. EPA announces this funding in a Notice of Funding Availability (NOFA) published in the Federal Register and the WIFIA program website. In the letter of interest (LOI), prospective borrowers provide information that EPA uses to determine the project’s eligibility, creditworthiness, engineering feasibility, and impact on statutory scoring criteria. In addition, the Office of Management and Budget (OMB) evaluates whether the project complies with budgetary scoring rules (pdf) (199.92 KB). Based on these reviews, EPA selects projects which it intends to fund and invites them to continue to the application process

Phase 2: Project Approval

An invitee then submits an application for a WIFIA loan. Using this information, the WIFIA program conducts due diligence of the borrower and project(s), including a question-and-answer period. The WIFIA program proposes terms and conditions of the loan(s) for the project and negotiates with the applicant to develop a mutually agreeable set of loan documents. Prior to closing, the WIFIA program must receive approval from the EPA Administrator or their designee and OMB. At closing, EPA and the applicant execute the term sheet, which obligates the WIFIA funds, and the loan agreement, which is the binding legal document that allows the borrower to receive WIFIA funds.

Phase 3: Project Monitoring

Following loan closing, borrowers must meet several requirements to receive funding and remain in compliance with the loan agreement. Post-loan closing activities generally fall into in three categories: disbursements, loan servicing, and loan monitoring. The executed loan agreement will identify specific requirements.