dwgwpd home
dec home > dwgwpd home > funding > dwsrf > planning loan

DWSRF Planning Loan

Planning loans are available for the following systems:

  • Municipal public community systems with populations <10,000
  • Municipal non-transient, non-community (NTNC) water systems
  • Private non-profit community water system with populations <10,000

Planning loans are awarded for preliminary engineering planning studies, preliminary and final engineering plans and specifications for water system improvement projects needed to comply with state and federal standards and to protect public health. Nearly all water system improvement projects are eligible (new construction, renovation or replacement, or consolidation of systems). Costs incurred prior to a commitment of loan funds by DEC are not eligible for a loan.

A project priority list for planning loans is only if there is a shortage of funds and currently there is none. Applications are accepted on a continuing basis. (strongly recommend opening & saving before completing any portion of the application)

Under certain circumstances up to $50,000 of the planning loan balance may be forgiven. Municipal water systems eligible for forgiveness must meet the following general criteria before receiving forgiveness.

  • Make all improvements for which the planning and construction loan was provided
  • Close out all applicable permits to construct
  • Stay current on DWGWPD fees
  • Pass a compliance review
  • Pass a capacity review

Planning loans are at 0% for a five-year term but, if applicable, will be rolled into a construction loan at the interest and term identified for the construction loan. The maximum annual loan amount is $100,000, except when there is a surplus of funds or when the Secretary specifically approves an exception.

Major Planning Loan Steps:

  • Send out a Request for Proposal (RFP) for engineering services (an optional but strongly recommended first step). Assistance is available with RFP development.
  • Once an engineer is selected and the engineer provides the water system with a draft engineering services agreement, formally apply for a planning loan. Please be sure to include contracts or invoices for costs and services not covered in the engineering services agreement (e.g., ledge probes, water quality testing, and well drilling).
  • Complete a Capacity Evaluation with the Capacity Development Specialist
  • After review and approval of the engineering services agreement by the FED, sign and return the agreement to the DWSRF Project Development Specialist.
  • Execute loan documents. Legal assistance for loan closing is available. Contact us for details.
  • Request reimbursement on a monthly basis. This is a reimbursement-based loan-- the Water System must pay engineering and other services up front and submit copies of the checks to the Facilities Engineering Division.
  • Receive reimbursement checks for approved services.
  • Complete planned work.
  • Request Loan Forgiveness

Applications, Forms and Tools (link to)



drinkingwater.vermont.gov   groundwater.vermont.gov   septic.vermont.gov wastewater.vermont.gov
VT DEC Drinking Water and Groundwater Protection Division 1 National Life Drive, Main Building, 2nd Floor  Montpelier, VT  05620-3521
Telephone 802-828-1535    Fax: 802-828-1541


State of Vermont Agencies & Depts.     Access Government 24/7     About Vermont.Gov     Privacy Policy

A Vermont Government Website Copyright 2004 State of Vermont - All rights reserved