Lima to get $678,867 loan from Illinois EPA to connect to new water source

SPRINGFIELD, Ill. — The Illinois Environmental Protection Agency announced Thursday the issuance of $85,956,802 in water infrastructure loans to local governments and water districts for the third quarter of Fiscal Year 2023 (January through March).

The village of Lima in Adams County is receiving $678,867.95 to connect to a new water source. The project includes construction of an interconnect to mains owned and maintained by the ABS Water Co-Op, from which the village will buy finished water. The project is receiving disadvantaged community principal forgiveness as well as small system compliance assistance principal forgiveness. The loan principal will not be repaid.

The Illinois EPA State Revolving Fund program provides low-interest loans which fund wastewater, stormwater and drinking water projects. A total of $13,326,437 in loan forgiveness was provided to those recipients meeting the loan rules for either the small community rate or hardship rate.

“Communities throughout Illinois are facing significant challenges as they address aging infrastructure, and Illinois EPA is pleased to provide financial assistance to so many of them to help with those efforts,” Director John J. Kim said in a press release.

“So far in fiscal year 2023, Illinois EPA has already invested nearly $232 million in our state’s drinking water and wastewater infrastructure, and there are more communities in line to receive future funding from the program. These funds not only provide for safe drinking water and protect our water resources, but they also bring good jobs to each community.”

Illinois EPA’s State Revolving Fund has two loan programs — the Water Pollution Control Loan Program, which funds both wastewater and stormwater projects, and the Public Water Supply Loan Program for drinking water projects. Both programs provide funding at a low interest rate of just 1.24 percent for FY23.

These programs receive federal capitalization funding annually, which is combined with state matching funds, interest earnings, repayment money and the sale of bonds to form the source of financing for these infrastructure projects.