OAR 340-054-0056: Clean Water State Revolving Fund Loans: CWSRF Loan Use Conditions

(1) Clean Water Act plans. DEQ will only provide a loan to a project that is consistent with plans developed under sections 303(e), 319 or 320 of the Clean Water Act. (2) Refinancing a long-term loan. DEQ will not provide a loan that will be used to refinance another lender’s long-term loan or other debt obligations. (3) Refinancing an interim loan. DEQ may provide a loan to refinance an interim loan or self-generated funds used to pay DEQ-approved project costs if the public agency borrower: (a) Provides DEQ with a written notice of intent to apply for long-term financing; (b) Wants to proceed with the project using interim financing or self-generated funds; and (c) Agrees to proceed at its own risk whether or not the CWSRF is available to provide long-term financing. (4) Interim financing. DEQ may provide short-term, construction-period financing for an eligible project if the following conditions are met: (a) The CWSRF’s liquidity is sufficient to provide financing without adversely affecting the amount and timing of disbursements needed for prior obligations; (b) The public agency borrower has a legally enforceable obligation for long-term project financing satisfactory to DEQ; and (c) The loan agreement for interim financing will stipulate DEQ is not obligated to provide long-term financing for the project.