Pre-development Funding

Pre-development fund provides innovative financing solutions, as many communities have short-term challenges where WFX can deploy pre-development capital to catalyze project success or mitigate a barrier to progress. For example, a community may need to complete initial project tasks to be able to access larger sources of funding and pre-development funds are need for activities like digging a test well, completing a pre-engineering report, or conducting an environmental assessment.

WFX works with diverse funders, including philanthropy, to identify blended models of grants and loans with risk mitigation tools such as credit enhancement/backstops. WFX’s flexible pre-development offers forgivable loans to communities up to $250,000 and may be utilized to address financing roadblocks or serve as bridge loans. WFX can quickly deploy funds to help complete catalytic tasks to advance infrastructure solutions.

Pre-Application Costs

Pre-development funds can be used for costs such as engineering, application development, environmental reports, or other barriers to accessing funding and financing opportunities.

Credit Enhancement

WFX works with communities to enhance their credit, using philanthropic resources to allow communities to access cheaper financing for municipal projects.

Bridge Loans

Pre-development funds can be used to pay for short-term construction needs for projects where funding is confirmed but requires reimbursement from state or federal sources.

Pre-Development Funding in Practice

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.