WIFIA Solutions for Needing Multiple Funding Sources

I need to combine multiple sources to fund my project.

There is rarely a perfect funding source to solve every water system challenge. Instead, communities typically utilize a variety of funding sources to address their drinking water, wastewater, and stormwater infrastructure needs. These potential funding sources include cash, bonds, grants, and low-cost loans. While multiple funding sources can benefit communities, complications can also arise. 

How Can WIFIA Funding Help?

To minimize complications from combining many different funding sources, the WIFIA program works with co-funding entities to create efficient processes for borrowers. Borrowers can take advantage of several WIFIA financing benefits to streamline this process, including the flexibility to co-fund with a wide range of sources, ability to secure funding throughout the project lifecycle, and options to wrap WIFIA loan around other debt and make amortization and draw schedule adjustments. These cooperative efforts reduce burden and maximize community benefits.

• Variety of Co-funding Options: The WIFIA program was designed to be a supplemental lender and coordinates well with other types of water infrastructure financing. WIFIA loans pair well with both short-term construction financing and long-term financing, such as State Revolving Fund (SRF) loans and bonds.
• Secure Other Funding During the Project: WIFIA borrowers always have the option of securing additional funding sources, even after loan closing. This helps borrowers find the most advantageous funding strategy that meets their needs.
• Wrap WIFIA Loan Around Other Debt: Borrowers can customize their repayments to match their anticipated revenues and expenses for the life of the loan. The ability to slowly increase loan payments allows borrowers to wrap principal repayments around other debt. For example, a project co-funded with a 20-year SRF loan and a 35-year WIFIA loan could take advantage of the WIFIA program’s flexibility and make only minimal payments until year 21, after the SRF loan has been fully repaid.
• Amortization and Draw Schedule Adjustments: After loan closing, changes during project construction can impact financing plans. Borrowers might be interested in adjusting their loan amortization and draw schedules to address these changes. To maximize flexibility, the WIFIA program will work with borrowers who request restructuring of amortization and draw schedules if there are changes to project costs, schedule, or funding sources. This option helps borrowers create a flexible repayment schedule that works with other funding sources.

Hear What Our Borrowers Are Saying:

“Soquel Creek Water District is impressed with the streamline process that EPA staff has developed for the WIFIA Program. The step-wise process of submitting an initial letter of interest, executing a WIFIA loan agreement, and submitting reimbursement requests- the EPA WIFIA team is truly a partner in helping to get projects funded and built! Recipients of the program I’m sure aren’t just thankful for the millions upon millions that get loaned out through the WIFIA Program, but it’s also the ease of the administration for borrowers that should also be recognized.” – Eileen Eisner Streller, Assistant Engineer II (2023), Soquel Water Creek District, California