What is SWIFIA?
The State infrastructure financing authority WIFIA (SWIFIA) program, authorized by Congress in section 4201 of America’s Water Infrastructure Act (AWIA) of 2018, is a loan program exclusively for State infrastructure financing authority borrowers. EPA is currently accepting Letters of Interest for FY 2022.
Eligible borrowers are exclusively State infrastructure financing authorities. EPA defines State infrastructure financing authority as the State entity established or designated by the Governor of a State to receive a capitalization grant provided by, or otherwise carry out the requirements of, title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et. seq.) or section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12).
The SWIFIA project must be a combination of eligible development and implementation projects, each of which is eligible for assistance under section 603(c) of the Federal Water Pollution Control Act (33 U.S.C. § 1383(c)) or section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. §§ 300j–12(a)(2)) for which a State infrastructure financing authority submits to EPA in a single request.
Important Program Features
- $20 million: Minimum SWIFIA project size.
- 49 percent: Maximum portion of eligible SWIFIA project costs that EPA can finance.
- 35 years: Maximum final maturity date from the date of first disbursement.
- 5 years: Maximum time that repayment may be deferred after the date of first disbursement.
- Interest rate will be equal to or greater than the U.S. Treasury rate of a similar maturity at the date of closing.
- Projects must be creditworthy and have a dedicated source of revenue.
- National Environmental Policy Act (NEPA), Davis-Bacon, American Iron and Steel, Build America, Buy America Act, and all other federal cross-cutter provisions apply.
Types of Credit Assistance
Under SWIFIA, EPA is offering senior loans, on parity with a State infrastructure finance authority’s other senior capital market debt of the same credit quality. Prospective SWIFIA borrowers may request one the following loan structures:
- EPA adopts the State infrastructure financing authority’s existing capital market debt indenture (to the extent the terms are permissible under Federal law and regulation and WIFIA program policies); or
- The State infrastructure financing authority accepts EPA’s standard terms.