Community Financial Services

Community Financial Services (CFS) is the official lending arm of Water Finance Exchange (WFX). CFS provides financing and credit-building tools to rural, small, and underserved water and wastewater utilities that lack access to conventional financing.

Many communities face short-term barriers that stand between them and the larger funding sources they need: a feasibility study, a rate study, an audit, a preliminary engineering report, an environmental assessment, or a cash-flow gap while waiting on reimbursement. CFS deploys flexible, catalytic capital to clear those barriers and move infrastructure projects forward.

Our Financial Products

Community Catalyst Fund (CCF)

Grants of up to $10,000 for communities that need predevelopment support but cannot yet take on debt. CCF covers early tasks that unlock larger funding opportunities.

Funding is limited. Applications are accepted on a rolling basis until all funds are awarded.

Predevelopment Loan Program (PDL)

Short-term loans of up to $500,000 for feasibility studies, engineering reports, rate studies, audits, environmental assessments, funding application preparation, and other predevelopment needs. Rates start at the AAA municipal benchmark, with terms of up to 7 years and origination fees of up to 3%.

Bridge Loans

Short-term financing of up to 2 years that keeps projects moving until long-term permanent financing becomes available, including projects where state, federal, or private funding is committed but paid on a reimbursement basis. Rates start at the AAA municipal benchmark, with an origination fee of 3%.

New
National Water Infrastructure Fund (NWIF)

The National Water Infrastructure Fund (NWIF) brings philanthropic, concessionary, and institutional sources of capital together to provide affordable, long-term financing. NWIF’s Small Capital Projects Loan Program offers lending of up to $5 million for equipment and construction, with terms of up to 15 years and long-term financing available for up to 30 years.

Ready to get started? Fill out our general application form.

Technical Assistance and Financing, Hand in Hand

Financing works best when a community has the support it needs. CFS works hand in hand with the WFX Technical Assistance (TA) team and our network of TA partners. Technical assistance is the first layer of support, helping a community understand its needs, its operations, and its finances. CFS builds on that foundation, translating complex financing programs into a clear path that fits each community’s capacity and goals.

Together, TA and CFS help communities move from planning to a funded, built project. Along the way each community builds the financial track record they need to access capital on their own over time.

The WFX Capital Network

CFS works with a diverse network of partners that support funding, pipeline, and project development, including philanthropic foundations and PRI investors, banks and financial institutions, and technical assistance providers who help communities prepare projects for financing.

Credit Enhancement

Credit enhancements are risk-mitigating financial tools that move risk off the lender, so capital can reach communities that would not otherwise qualify. WFX leverages credit enhancements such as:

Loan Loss Guarantee. A third party agrees to cover a defined share of losses, capping what the lender can lose.

Debt Service Reserve Fund. Cash set aside to make loan payments if revenues fall short, giving the loan a cushion before default.

Borrowed AAA Rating. A rated philanthropic balance sheet stands behind the loan, so the community borrows on the funder’s strength.

For communities, credit enhancement can mean access to lower-cost financing and/or access to capital markets. For funders, it means philanthropic resources can mobilize far more capital than a grant alone.

Community Financial Services in Action

United Regional Water Cooperative

In 2021, WFX provided pre-development bridge funding and regulatory assistance to a water cooperative in rural Illinois to complete a corrosion control study mandated by the Illinois EPA before construction could commence on a 1.5 MGD water treatment plant to serve the six communities pursuing a regional solution. The plant is now operational, and the loan has since been repaid in full.

Read the full profile of the United Regional Water Cooperative project here.

Work With WFX

Apply for Funding

To apply for funding, please fill out our general application form. Communities already working with WFX Technical Assistance or one of our TA partners can also ask their TA provider to connect them with the CFS team.

Funders and Capital Partners

Funders and capital partners interested in working with WFX are also encouraged to reach out to cfs@waterfx.org.

Financing terms, including interest rates, repayment periods, and loan amounts, are subject to applicant and project eligibility, underwriting approval, availability of capital, and applicable funding requirements. All financing is subject to review and approval by Water Finance Exchange (WFX). Terms may vary, and financing is not guaranteed.