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Financing FAQ

Program Interest Rate
Clean Water State Revolving Fund Approximately 60% of AAA market rate
Drinking Water State Revolving Fund Approximately 70% of AAA market rate with 30% savings through federal subsidy
Financial Assistance Program The variable interest rate for a bond loan changes quarterly. The fixed interest rate for bond loans is set at the time of closing and is based on market conditions at that time.

All grant applications must be signed and attested and include the attorney's signature. The following documents are also required:

  • the resolution authorizing application to the OWRB
  • the entity's incorporation documents
  • the ordinance/resolution adopting the current water and/or sewer rates (if necessary)
  • the water purchase contract
  • the most recent audit
  • a preliminary engineering report with an estimated cost of the project

Yes. Costs directly associated with any engineering study or report related to the proposed project can be reimbursed. For tax purposes, revenue bond loans require that a reimbursement resolution be provided to the OWRB before any costs are incurred.

Clean Water and Drinking Water Revolving Fund loans require an Environmental Information Document (EID). The OWRB prepares and issues the environmental decision for the CWSRF. The Oklahoma Department of Environmental Quality prepares and issues the environmental decision for the DWSRF.

Projects that require a permit to construct from the Oklahoma Department of Environmental Quality must have a registered professional engineer prepare the engineering report as well as any plans and specifications. The report should follow the format adopted by the Funding Agency Coordinating Team.

Projects that do not require a permit to construct are reviewed on a case-by-case basis.

No. A financial advisor is not required for any OWRB loan. However, many communities hire a financial advisor to help them complete the loan application and identify the source(s) of repayment. Financial advisor fees may be included in the loan.

Yes. Both a local attorney and a bond attorney are required to close all OWRB loans. Attorney fees may be included in the loan.

Yes. Revenue bond loans require a trustee bank; loan funds are transferred to the trustee bank at loan closing and payment requests are made from the trustee bank account. DWSRF and CWSRF loans require a trustee bank after construction is complete; during construction, loan funds are transferred to the borrower as costs are incurred.

Bond loan payments begin the month following loan closing and are due to the trustee bank on the 15th of each month until the loan matures. Principal payments on DWSRF and CWSRF loans generally begin within six months of construction completion and are due to the OWRB semi-annually until the loan matures. Interest and administrative fees are billed every six months after the loan is closed and eligible loan costs have been paid.

No. There is no penalty for pre-payment of any loan issued by the OWRB. However, loans from OWRB Revenue Bonds may require that prepayments be received during a specified time period or window of opportunity. Please contact an OWRB financial analyst for details.

After the OWRB approves the grant, certain documentation is required prior to the release of funds, including the executed grant agreement, verification that a separate account for the funds has been opened, executed contract documents, notice to proceed, and, if required, a copy of the DEQ permit to construct. Upon receipt of all necessary documentation, OWRB staff request a check from the Office of State Finance, which is usually issued within 7-10 days. Once the check arrives at the OWRB, staff contact the entity regarding delivery.

Last Modified on Aug 02, 2023
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