Loan repayment
Term
The Clean Water Fund Program (CWFP) and Safe Drinking Water Loan Program (SDWLP) typically lend money for 20 years. Thirty-year financing is available for the sewer pipe portion of eligible CWFP projects. You may request a shorter loan term. Read our Loan Terms webpage.
Interest payments
Interest accrues from the date of each loan disbursement. Interest is payable each May 1 and Nov. 1. Interest payments start on the first May 1 or Nov. 1 that is at least 60 days after the loan closing.
Principal payments
Principal payments begin on the first May 1 after substantial completion of the project. The borrower estimates the substantial completion date before the project manager can prepare the municipality's financial assistance agreement (FAA).
Payment schedule
Most loans have repayment spread evenly over 20 years. Smaller interest payments occur in November, and larger interest and principal payments occur in May. Principal payments rise as interest payments fall, keeping annual payments the same from year to year. Borrowers pledging special assessment revenue may request level principal payments to better match expected special assessment revenue.
Exhibit B of the FAA shows a hypothetical repayment schedule. The repayment schedule in Exhibit B is for illustration only since it assumes the entire loan is disbursed at closing. The loan repayment schedule depends on the timing and size of loan disbursements. After the final disbursement, the Department of Administration (DOA) will send a final loan repayment schedule.
Prepayment
Loans secured with a special assessment pledge require prepayment when special assessments are received. All other loans prohibit prepayment without the prior written consent of the CWFP or SDWLP.
Invoices
We send invoices to borrowers in mid-March and mid-September, approximately 45 days before payment due dates of May 1 and Nov. 1.
We must receive payments by 4:30 p.m. on the due date
We must receive your payment by 4:30 p.m. on the due date! Prompt payment maintains the CWFP/SDWLP's favorable credit rating. Favorable credit ratings help us lend to you at below-market interest rates.
Late payments
If we don't receive your payment by the due date, your loan is delinquent and in default. This may harm your and our credit rating and ability to borrow. The CWFP and SDWLP may take actions allowed for under the financial assistance agreement and Wisconsin statutes to remedy a default.
- Contact information
- For information on this topic, contact:
- DOA Capital Finance Office staff at DOAEIF@wisconsin.gov