Colorado Water Project Loan Program

CWCB's Water Project Loan Program makes low-interest, long-term loans for building or rehabilitating untreated-water infrastructure: reservoirs, ditches and canals, pipelines, diversion structures, groundwater wells, water rights purchases, flood control and hydropower. Agricultural borrowers get a 2.40% rate on a standard 30-year term. Projects must align with Colorado's Water Plan, and the borrower submits a loan feasibility study through the CWCB Portal.

• Any private or public entity that can contract with the state and that can establish and document the need for the project (common borrowers: irrigation districts, mutual ditch companies, associations, reservoir companies, municipalities, special districts)

• Project must be technically, economically, institutionally and financially feasible and align with Colorado's Water Plan

• Non-governmental borrowers must be in good standing with the Colorado Secretary of State and meet minimum insurance requirements

• Water treatment projects are not eligible

Standard term 30 years (10/20/40-year options with rate adjustments); 1% service fee rolled into the loan; funds disbursed against invoiced work during construction; interest during construction paid before permanent annual payments begin; borrower sets aside 10% of the annual payment as a reserve for the first 10 years. Eligible costs: design, engineering, construction, water rights purchases; land/easements if integral.

Published amounts: A minimum loan request of $100,000 is recommended. Rates (30-year term): Agricultural 2.40%; Municipal 3.35%/3.80%/4.30% by income; Commercial 6.00%; Hydroelectric 2.00%. Rates are reduced by 0.25% for 20-year loans, and by 1.30% for 10-year loans; increased by 0.25% for 40-year loans. 1.0% loan service fee. Rates update every other month.

Before applying, contact Matt Stearns to discuss the project, schedules and deadlines. Request registration on the CWCB Portal (1–2 days), complete the online application and upload a Loan Feasibility Study. Staff recommend the loan to the Board; borrowers should attend the Board meeting, then sign a state loan contract (attorney opinion letter, proof of insurance, W-9, EFT required). A typical loan under $10 million takes four to five months from application to available funds.

Deadline text on the page: Requests for less than $30 million: Applications may be submitted throughout the year. Requests for more than $30 million: Applications must be submitted by August 1 to be considered for CWCB approval at the November CWCB Board meeting.