What is the Water Project Loan Program?
Approximately $20 million is available annually for the CWCB Water Project Loan Program, which provides low-interest loans to agricultural, municipal and commercial borrowers for the design and construction of raw water projects in Colorado. A minimum loan request of $100,000 is recommended.

 Examples of Funded Projects

What are the current interest rates for a loan?

Interest Rates
Agricultural		1.75%
Municipal	Low Income 2.50%	Middle Income 3.00%	High Income 3.25%
Commercial		6.00%
Hydroelectric		2.00%
Restricted Reservoirs		Call for details

The standard loan term is 30 years. Rates are reduced by 0.25% for 20-year loans, and by 0.50% for 10-year loans. Calculate annual payments based on principal, interest and term using the Loan Calculator. 

Note: 1.0% will be charged on the loan amount as a loan service fee.

Who can apply for a loan?
Any private or public entity that can contract with the state and that can establish and document the need for the project. The project sponsor must show that the project is technically, economically, institutionally and financially feasible.

How can the money be used?
Eligible projects for financing include new construction or rehabilitation of existing raw water storage and delivery facilities, such as:

• Reservoirs
• Ditches and canals
• Pipelines
• River diversion structures
• Groundwater wells
• Water rights purchases
• Flood control projects 
• Hydropower

How do I apply for a Loan?

1. Contact Anna Mauss (303-866-3441 x3224) to discuss schedules/deadlines and Loan Program requirements.
2. Review the Water Project Loan Program Guidelines, which outline the steps for developing a Loan Feasibility Study.
3. Submit an Application and a Loan Feasibility Study to:

   Colorado Water Conservation Board
   Finance Section
   Attn: Anna Mauss, P.E.
   1580 Logan Street, Suite 600
   Denver, CO 80203

4. Attend the CWCB Board meeting.

When do I apply? ­

• Requests for less than $10 million: Applications may be submitted throughout the year. A typical loan of less than $10 million can be processed in four to five months from submittal of the application and the loan feasibility study to the day funds are available. ­
• Requests for more than $10 million: Applications must be submitted by August 1 to be considered for CWCB approval at the November CWCB Board meeting. Funds then would be available the following July 1, after approval by the legislature.

 Schedules/Deadlines

What is the process after I have been approved for a loan?
The process following CWCB Board approval of the loan includes:

1. Shareholder Resolution (if required): Corporate entities must provide director and shareholder resolutions authorizing the indebtedness. Government entities must comply with all required processes, including holding elections to approve project expenditures if necessary.
2. Contract Execution: A CWCB staff member will prepare the loan contract (typical example contracts - Private or Public). No state funding can be provided until a signed state contract is executed. In addition, an attorney opinion letter is required.
3. Borrower Forms: The borrower must submit the following forms prior to disbursement of CWCB funds:
   • Proof of Insurance
   • Federal W-9 Form
   • Electronic Funds Transfer information, if desired
4. Design and Construction: The CWCB Design and Construction Manager also will contact the borrower to begin discussing the process, including:
   • Project schedule, “Need Funding” date and project contacts
   • Design/Construction process (sample bidding and construction documents)
   • Loan disbursement procedures
5. Loan Repayment: At the end of project construction and following issuance of a “Letter of Substantial Completion” by the Design and Construction Manager and payment of the Interest During Construction (IDC) owed, the project sponsor will begin making permanent annual loan payments.