Drinking Water State Revolving Loan Fund
Administered by New Mexico Finance Authority
This program is for public water systems, not individual homeowners, so it does not apply to residential customers.
This program finances water infrastructure projects for municipal and community water systems through low-cost loans (0% to 3% depending on entity type, up to 30 years). Contractors working on eligible drinking water infrastructure, treatment, transmission, distribution, or interconnection projects for public water systems can participate; "green projects" including renewable energy like solar may qualify for an additional 25% principal forgiveness on the water system's loan.
DWSRLF is a federal-state partnership managed by the New Mexico Finance Authority and the New Mexico Environment Department with approximately $8 million in annual federal capitalization grants (matched 20% by the state). Eligible applicants are municipal and community water systems and nonprofit non-community water systems; disadvantaged entities receive 0% loans while other community systems receive 0.01% and nonprofit systems 3%. Projects prioritize public health protection, Safe Drinking Water Act compliance, and affordable water access, with principal forgiveness available for green infrastructure projects subject to funding availability.
Program details
- Program ID
- 5161
- Effective
- 1/26/1997
- Last updated
- 8/5/2025
Eligibility
- Sectors
- local government
- Technologies
- solar photovoltaics other distributed generation technologies yes; specific technologies not identified
Incentive amount
$8 million annually
Program summary
The Drinking Water State Revolving Loan Fund provides low-cost financial assistance to eligible public water systems to finance the cost of repair and replacement of drinking water infrastructure, maintain or achieve compliance with the federal Safe Drinking Water Act (SWDA) requirements, and protect drinking water quality and public health. Community water systems and nonprofit non-community water systems are eligible to apply for DWSRLF funding.
"Green projects" can receive an additional 25% principal forgiveness on their loans. This includes, among other things, energy efficiency improvements and renewable energies like solar panels
Contact & resources
- Contact email
- DW@nmfa.net
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
