New Market And Interest Rates
The market rates for the Clean Water Fund Program and Safe Drinking Water Loan Program loans with municipal meetings (resolutions approving the municipal obligations and the financial assistance agreements) on or after July 1, 2025, will increase.
The market rates will be as follows:
- The market rate for tax-exempt loans with loan terms of 20 years or less will increase from 4.000% to 4.500%, and with loan terms of 21-30 years will increase from 4.200% to 4.700%.
- The market rate for taxable loans with loan terms of 20 years or less will increase from 4.494% to 5.375%, and with loan terms of 21-30 years will increase from 4.719% to 5.595%.
The Lead Service Line Replacement Program interest rate is not tied to the current market rate and is instead set at 0.25%. Learn about market rates and program-subsidized interest rates on the DNR’s Interest Rates webpage.
As always, the Environmental Improvement Fund encourages applicants to diligently move forward toward closing loans as quickly as possible.
While current market conditions along with the geopolitical environment require this market rate increase, the Wisconsin Department of Administration (DOA) reviews the market rate quarterly and currently anticipates the above rates will be valid for municipal meetings through Sept. 30, 2025.
The DOA will continue to monitor the municipal bond market and make recommendations on the market rates in early September for the municipal meetings occurring between Oct. 1, 2025, and Dec. 31, 2025. Please note that the DOA reserves the right to adjust the market rates at any time.
Please direct any market or interest rate questions or concerns to the DOA Capital Finance Office at DOAEIF@Wisconsin.gov.
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