Drinking Water State Emergency Loan (SEL)
To fund drinking water capital projects that protect public health, North Carolina makes loans at one-half of the market rate for a period of up to 20 years. An administrative or departmental funding fee of 2.50% is charged for this service and made payable upon award of funding according to NCGS 159G-24(a). The actual term of the loan is determined by the State Treasurer's Office. All funded projects must address a threat to public health (as described in the 15A NCAC 01J rules that implement the founding statute NCGS 159G).
There is no application deadline. The Division of Water Infrastructure considers applications for emergency loans as they are received.
If you are interested in the SEL program or other financial assistance offered by the Division, contact us for more information on the application process.
All funding programs use the same application, but each program has its own requirements. The application and the application appendix for the HUC grant program can be found on the forms page. Follow the instructions in the application and appendix carefully.
Under NCGS 159G-34(a)(4), “an emergency loan is available to an applicant in the event the Secretary certifies that either a serious public health hazard or a drought emergency related to the water supply system is present or imminent in a community.”
Under NCGS 159G-31, applicants must be either a local government unit or a nonprofit water corporation in order to be eligible.
Under 15A NCAC 01J .2001(c), the SEL program can fund only the most cost-effective solution to a documented public health problem. Therefore, the applicant must document both the existence of the problem and the costs of alternatives to address it, typically in the Preliminary Engineering Report, or 'PER.' In particular, the PER must explicitly discuss the 'do-nothing' or 'no-build' alternative.
The following project costs are specifically ineligible under 15A NCAC 01J .1501(b):
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