Livestock Water Quality Program

The Livestock Water Quality Program (LWQ) offers low-interest loans through participating lenders to Iowa livestock producers for projects to prevent, minimize or eliminate non-point source pollution of Iowa’s rivers and streams from animal feeding operations.

The types of eligible projects include lagoons, manure management structures, equipment, vegetative filters and the development of manure management plans. Assistance is limited to existing facilities for animal feeding operations with less than 1,000 total animal unit capacity (AUC).

This program is administered by the Division of Soil Conservation (DSC) of the Iowa Department of Agriculture and Land Stewardship through its local Soil and Water Conservation Districts (SWCD) with Iowa Finance Authority (IFA) acting as the financial agent.

Prior to receiving a loan, the landowner must receive project approval from the local SWCD.

The IFA deposits funds in an account at the local lending institution in an amount equal to the loan amount. This linked deposit allows the lender to make a loan to an eligible borrower at a low interest rate.

How Does It Work?

• Local lender originates loans of $10,000 to $500,000 with a maximum term of 10 years, depending on the useful life of the project.
• Total outstanding balance for a borrower not to exeed $500,000
• The interest rate charged the borrower will not exceed 3%.
• The IFA will deposit funds equal to the principal amount of the loan at 0% interest.
• The deposit does not guarantee the loan nor is it collateral for the loan. The deposit is only to reduce the interest rate charged to the borrower.
• Annually, IFA will withdraw from the deposit account an amount equal to the principal repayment of the outstanding loan. As a result, the amount in the deposit account will equal the principal outstanding on the loan.
• All costs directly related to the design, permitting, construction and financing of the water pollution control facilities are eligible. Costs for development of a manure management plan, nutrient management plan or comprehensive nutrient management plan are also eligible.

Application Procedure

Applying for a LWQ loan is easy! Simply complete this step-by-step process.

Become a participating lender:

1. Sign up as a participating lender. Fill out the online application at www.ifaprograms.com and send or fax the Lender Participation Agreement to IFA.
2. After receiving the signed Lender Participation Agreement, IFA will activate the lender. The lender may now access the online system.

Project Application Process:

1. The borrower works with the local SWCD on the project. For more information on project eligibility or approval, contact Tony Toigo at 515-281-6148.

Loan Application Process:

1. The borrower completes the lender’s normal loan application process.
2. When the loan is approved by the local lender, the lender completes the online application.

Loan Completion:

1. After the project has been completed, inspected and certified by the local NRCS staff, the Division of Soil Conservation (DSC) approves the project and loan amount online.
2. After DSC approves the project, IFA approves the application and the lender receives an email that funds can now be requested.
3. Lender goes online and requests the funds. This involving entering loan details (date of loan, term of loan, lender contact, etc.).
4. Funds are deposited in an IFA deposit account at the local lending institution and the borrower receives his/her loan from the lender.

Annually:

1. Approximately, two weeks before the anniversary date of the loan, IFA will send a notice to the local lender via email reminding the lender that IFA will withdraw from its deposit account an amount approximately equal to the principal that has been repaid.
2. The amount in the deposit account and the amount of the outstanding principal on the loan will be the same.