PENNVEST — Pennsylvania Infrastructure Investment Authority Loans & Grants

Pennsylvania's primary low-interest financing source for drinking water, wastewater, stormwater, and nonpoint source pollution infrastructure projects. Loans and grants available, often combined to lower project costs.

PENNVEST is the Commonwealth's dedicated infrastructure bank for water, sewer, and stormwater projects. It provides flexible long-term, low-interest loans — often combined with principal forgiveness or grant components — to municipalities, municipal authorities, public water systems, and certain nonprofit and private operators. Loan terms can extend up to 30 years for qualifying projects, with rates well below commercial lending.Eligible work includes new treatment plant construction, lead service line replacement, inflow/infiltration reduction, stormwater green infrastructure, decentralized systems, source water protection, and nonpoint source pollution reduction. PENNVEST also funds project planning and engineering through pre-construction loans.Funding rounds occur quarterly and typically distribute hundreds of millions of dollars statewide. Pre-application consultation with PENNVEST staff is strongly encouraged — the agency is unusually willing to work with smaller systems on application strategy. For watershed groups that work alongside small municipal water and sewer authorities, knowing PENNVEST exists is the single biggest unlock for the partner-side of restoration projects.