Small Community Wastewater (SCWW) Funding

SCWW funding is available through the Clean Water State Revolving Fund (CWSRF) Program to help small disadvantaged communities (small DACs) implement eligible wastewater capital improvement projects. Within the CWSRF Program, a Small DAC means a community with a population of less than 20,000 and either or both of the following conditions:

• A median household income (MHI) of less than 80% of statewide MHI.
• A sewer rate of more than 4% of the community’s MHI.

Eligible Applicants

Public agencies having jurisdiction over disposal of sewage, industrial wastes, or other wastes, or an Indian tribe or an authorized Indian tribal organization, or a designated and approved management agency under Section 1288 of title 33 of the United States Code.

Eligible Projects

Planning/design and construction of wastewater infrastructure projects including:

• Wastewater treatment
• Septic to sewer conversions
• Regionalization
• Local sewers
• Sewer interceptors
• Wastewater reclamation and distribution
• Stormwater treatment
• Combined sewers
• Landfill leachate treatment

Financing Terms

• Financing Limit: Grants/principal forgiveness(PF) may be available per the terms included in the current CWSRF Intended Use Plan (IUP). Loans are limited only by facility's ability to borrow.
  • 2026-27 CWSRF IUP SCWW Fact Sheet
  • Future SCWW Funding Projections Fact Sheet
• Loan Interest Rate: interest rate may vary each calendar year and is established at the time the financing agreement is prepared for approval or financing is approved by the State Water Board. The interest rate will generally be 50% of the State’s most recent general obligation bond rate rounded up to the nearest one-tenth of a percent. Lower interest rates may be available for SCWW projects if the community is unable to afford all or a portion of the interest payments. For wastewater projects, the applicant’s wastewater rates need to be at least 1.5% of the community’s MHI before DFA will consider reducing the interest rate for a potential loan. The reduced interest rate will be lowered incrementally until the community is able to afford the loan and meet the debt service requirement. The interest rate will not automatically be lowered to zero.
• Loan Repayment Term: up to 30 years or useful life of the project
• Loan Repayment: Begins within one year after project completion