Loan Help: How to Apply

Making an Application

The Form

  • For all applicants, WID has created a unified funding application (YOU MUST RIGHT CLICK, 'SAVE LINK AS', and save remotely before completing) for DWSRF, CWSRF, and PC Grant funded projects. For all municipal applicants (including Water Districts and Fire Districts), please also submit the Supplemental Financial Information (required for Step 2 and 3 applications). 

Attachments to the Application

Several attachments are required for the application:

  1. The draft Engineering Services Agreement (ESA).  Note: The 2014 EJCDC template is now required for all Engineering Services Agreements. 2014 EJCDC templates are proprietary and must be purchased.
    • Step 1 & 2
    • Step 3
  2. The DEC Certification Form
  3. The draft Level of Effort (LOE) table.  A matrix explaining the hours and rates for the work being done.
  4. Any subcontractors' proposals, small equipment purchases, or other eligible reimburseable costs:
    • hydrogeologists
    • wetlands biologists
    • 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  WID 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 appliciation, after the application is received by WID, Project Development staff will send an email indicating that the application has been received 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 Eligibility Email

For all projects, the applicant will receive an Engineering Services Agreement (ESA) eligibility determination email indicating the of services which are loan eligible. 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) via email 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

WID 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.

NOTE:  Projects that require construction loan funding must be on the Project Priority List.