role in financing water and sanitation
investments. The larger Clean Water State
Revolving Fund, created in 1987, and the
smaller Drinking Water State Revolving
Fund, created in 1997, receive federal and
state contributions and issue bonds. In turn,
they provide soft loans to utilities in their
respective states, with average interest rates at
2% for up to 20 years in the case of the Clean
Water State Revolving Fund. In addition to
the SRFs, the United States Department of
Agriculture provides grants, loans and loan
guarantees for water supply and sanitation in
small communities.