What is the Iowa Water Quality Loan Fund?

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Tony Toigo
Iowa Department of Agriculture and Land Stewardship
Division of Soil Conservation and Water Quality

small streamThe State Revolving Loan Fund is a new source of low-cost financing available to landowners. This opportunity is available specifically to assist and encourage landowners to address non-point source pollution of Iowa streams and lakes.

The State Revolving Loan Fund:

  1. Is ready when you are. Applications are accepted at any time during the year, and turn around time is quick.
  2. Requires no cash up front. Quick loan processing and friendly loan repayment terms let you get your project done now.
  3. Gives you significant cost savings. Interest rates are well below other financing sources.
  4. Complements other funding sources. If you have a grant or other funding, you can use a loan to provide your share of the project.

What Practices Can Be Funded?

Virtually all practices eligible for State Cost Share, REAP and EQIP are eligible for loans.  These practices may include but are not limited to:

  • Terraces, grade stabilization structures, water & sediment control basins
  • Pasture & hay land planting or prescribed grazing
  • Grassed waterways and filter strips
  • Field borders, windbreaks and buffers
  • Waste storage facilities
  • Deep bedded buildings or other roofed manure control structures

**Loans to implement practices for animal feeding operations can only be made to operations that are under 1,000 animal units and are not required to have an NPDES permit**

What are the Loan Terms?

  •  Loans from $5,000 up to a maximum of $500,000 per borrower
  •  Terms up to 15 years
  •  Can fund up to 100% of actual costs
  •  Interest rate no more than 3% - fixed for the life of the loan
  •  Funding available when you need it, applications accepted year round
  •  Use the lender of your choice or go to www.ifaprograms.com to view the list of current participating lenders.

How to Apply

Begin by talking to your local Soil and Water Conservation District (SWCD)

What is a Linked Deposit Loan?

The lender you select will originate a loan for a practice approved by your local SWCD when the work is complete.  The Iowa Finance Authority will deposit funds equal to the principal amount of the loan at 0% interest with your lender.  The deposit does NOT guarantee the loan nor is it collateral for the loan.  The deposit enables the lender to reduce the interest rate charged to the borrower.


Participating Lenders, www.IowaLinkedDeposit.com

Date of Publication: 
September, 2017