Loan Help: How to Apply

Making an Application

The Form

  • For all applicants, FED has created a unified funding application (YOU MUST RIGHT CLICK, 'SAVE LINK AS', and save remotely before completing) for DWSRF, CWSRF, and Pollution Control Grant funded projects. Currently, only DWSRF may lend to privately owned systems.

Attachments to the Application

Several attachments are required for the application:

  1. draft Engineering Services Agreement (ESA) Note: The FED template is required.
  2. draft Level of Effort (LOE) table
  3. any subconstractors' proposals
    • hydrogeologists
    • wetlands biologists
    • archeologist (CWSRF only)
    • surveyors
    • boring contractors
    • well drillers (DWSRF only)
    • road building (DWSRF only)
    • etc...

Project development and engineering staff review the application and attachments.  It is common that there will be comments on the scope of services and other items, which need to be resolved before  FED recommends that the ESA is signed, or executed.  The signed agreements must be sent in for the application to be found complete for CWSRF projects or loan authorization is made for DWSRF projects.

Loan Application Receipt Email

For any project with a signed applciation, after the application is recieved by FED, Project Development staff will send an email indicating that the application has been recieved and will indicate any missing information needed to process the loan. This email is not a loan approval of any kind. Following this action, staff will start review of the application for completeness.

Engineering Services Agreement Approval Email

For all projects, the applicant will recieve an Engineering Services Agreement (ESA) approval email indicating the of services has been approved. This email will indicate which scope items are eligible for reimbursement, or not, and which items are standard versus non-standard items.  This has implications with respect to calculating the engineering fee curve limit for the project. This email is also used to indicate the proposed work can commence and loan authorization is imminent. This letter will often request submission of the executed ESA. This email is not a loan approval of any kind.

Authorized Letter of Funding (ALF)

For all projects, once internal authorization of the loan is complete, Project Development staff will send an Authorized Letter of Funding (ALF) to the applicant indicating the loan authorization is being forwarded to the Vermont Municipal Bond Bank (VMBB) or Vermont Economic Development Authority (VEDA) for underwriting. This letter is not a loan approval of any kind.

Loan Authorization

FED does not hold the actual loan that will be issued, instead it relies on the VMBB and VEDA to underwrite the loan. Project Development staff will package all relevant loan information and send it to VMBB (for municipalities) and VEDA (for private systems).VMBB or VEDA may contact the applicant for further information in order to approve the loan. The applicant will receive loan documents that must be signed and returned to the respective lending institution. Private systems will receive a funding commitment letter from VEDA; this must be signed and returned. Once VEDA receives this letter, a closing date will be scheduled. VMBB will contact the applicant and applicant's Bond Counsel for closing. After closing, the applicant will then have a loan and can start seeking reimbursement for approved, eligible costs. At this point, the applicant has a loan and can seek disbursement against the loan.


Agency of Natural Resources
Department of Environmental Conservation
Facilities Engineering Division

Main Building - 1st Floor
One National Life Drive
Montpelier, VT 05620-3510