The Clean Water State Revolving Fund only makes low-interest loans; this debt must be repaid with interest by the borrower.
Debt reduction strategies
There are two primary ways to reduce the debt. It is an either/or choice, not both.
- Principal forgiveness option.
- Some projects and/or borrowers may qualify for principal forgiveness, which reduces the amount of debt that needs to be repaid.
- See DEQ's Principal Forgiveness web page with fact sheet for more information.
- Sponsorship option.
- Eligible only if a point source and nonpoint source application are submitted together.
- After submission, the applications or projects are independent. Each one will have its own budget, document requirements, and loan agreement. They do not need to be completed on the same schedule.
- By being paired at submission, each loan qualifies for the same reduced interest rate lower than if submitted separately.
Interest rates
Interest rates are calculated based on criteria defined in Oregon Administrative Rule 340-054-0065. Rates are adjusted quarterly, based on the average bond buyer rates of the previous quarter, as published by the Federal Reserve.
Different interest rates and other financial terms apply to different types of loans and to loans with differing repayment periods.
The interest rate for each loan is fixed when a loan is signed; it is for the life of the loan (except for Sponsorship Option loans).
This interest rate is used to calculate both interest accrued on disbursements made from the loan during the active period and during the repayment period.
Below are the rates effective for loans executed from Jan. 1, 2026, through March 31, 2026.
Annual fee
An annual fee may be charged after the project is complete and the loan goes into repayment. For budgeting purposes, this fee is in addition to the interest charged during repayment.
The fee is 0.5% of the unpaid balance and is collected once annually. See rate tables above for which type of loan has an annual fee.
Contact
To find out more contact DEQ staff or submit a Loan Information Request Form.
Staff contacts are listed on the Clean Water State Revolving Fund contacts home page.