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    Small Project Program

    Prior to the creation of this program, many lower cost projects in small communities were not utilizing PENNVEST for funding, partly due to the expense in complying with additional terms tied to federal funds and the time delay between an application and a funding offer. Communities with these types of projects need low-interest project financing, so the PENNVEST team and Board of Directors created the Small Project Program which allowed for an expedited review and award process and set criteria to help decrease requirements, by utilizing only state funds under this program.

    Funding Availability

    PENNVEST allocates available Commonwealth/PENNVEST revolving loan program recycled funds to support the Small Project Program.

     

     

    Eligible Applicants

    Small Project Program funds are available to public or private entities implementing small eligible projects.

    Small projects are defined as projects:

    • Serving communities with a population of no more than 12,000 people.
    • Having hookups of no more than 1,000.
    • Involving an agriculture operation.

     

     

    Eligible Projects

    Projects for which a funding request is no more than $500,000, including contingency. Total project costs at time of award may not exceed $1,000,000.  Requests for funding under the Small Project Program are not eligible for PENNVEST extended term bond purchases, grant awards, or principal forgiveness loans.

    All project types eligible for participation in the Small Project Program are defined in Title 25, Chapter 965.4.  

    Eligible projects include the acquisition, construction, improvement, expansion, extension, repair, or rehabilitation of all or part of any system or facility, whether publicly or privately owned:

    • For the collection, treatment, or disposal of wastewater, including industrial waste, or for non-point source, or estuary protection projects.
    • For the supply, treatment, storage, or distribution of drinking water.
    • In a public system or facility for the control of stormwater, which may include, the transport, storage, and infiltration of stormwater, or costs for the best management practices to address point or non-point source pollution associated with stormwater runoff, or other innovative techniques identified in the county-prepared watershed plan under the Storm Water Management Act.

    The cost of any Small Project Program project will be based on planning estimates.  Any funding increase request in excess of $500,000 must be submitted to the PENNVEST Board of Directors in accordance with standard protocols for increase requests.

     

    The following are not eligible under this program:

    • Land acquisition
    • Silvicultural projects
    • Projects with land conservation easements 

    These three project types may apply to PENNVEST for funding under the traditional PENNVEST program and if ranked sufficiently may be brought before the Board for consideration. Applicants must have all environmental permits in hand at time of application, if applicable.

     

     

    Loan Interest Rates, Terms, and Other Conditions

    The maximum term of loans under this program will be interest only for the construction period, not to exceed three (3) years, followed by a twenty (20) year principal and interest repayment term.  Interest rates on loans will be at the allowable county maximum rates, as defined in section 10(f) of Act 16 of 1988. If a project qualifies for consideration of either an extended term, a grant award, or a principal forgiveness loan the applicant may qualify for an interest rate reduction or choose to withdraw the application from the Small Project Program and submit the application for consideration under the traditional PENNVEST program. 

    Detailed terms and conditions for individual approved funding awards will be set forth in the official PENNVEST funding offer provided to the funding applicant.

     

     

    Terms that Apply

    • Steel Products Procurement Act requirements
    • "Or Equal" Bidding requirements
    • Cost Effectiveness requirements
    View DEP Infrastructure Finance for Competitive Construction Procurement and Cost Effectiveness Details

    Terms that Do Not Apply

    • Davis Bacon Wage Rates
    • Architectural and Engineering Services requirements
    • American Iron and Steel requirements
    • Uniform Environmental Review requirements
    • Disadvantaged Business Enterprise requirements
    • Fiscal Sustainability Plan requirements

     

     

    Application Procedure

    All applications will be received electronically through the PV Portal and processed through the traditional workflow with the objective of rendering a decision from staff within two (2) weeks of submittal. PENNVEST may, in its sole discretion or upon request of the applicant, move a project to the traditional program for full consideration by the PENNVEST Board of Directors.

    View the Application Process

     

     

    Disbursement of Loan Funds

    Loan funds will be disbursed to the borrower on a reimbursement basis. As the borrower incurs expenses and receives bills for eligible activities, the borrower will prepare and submit a payment request to PENNVEST through the PV Portal. Thereafter, the borrower will receive the funds electronically for costs incurred.