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Project financing


The United States Department of Agriculture (USDA) finances SVMWC’s system infrastructure improvements.


In October 2011, the USDA awarded SVMWC a loan collateralized by SVMWC’s real property in the amount of $3,931,716 to finance the 2010–2013 construction projects. SVMWC is repaying the loan over 40 years from 2011 to 2051 in semiannual installments for principal and interest of $96,456. The loan bears an interest rate of 3.75%.  Loan balance on June 30, 2022 was $3,092,460.


During 2020, SVMWC signed a promissory note with CoBank to finance the 2020–2024 construction project that is classified as a USDA Rural Development Project.  The note’s terms are:

  • Collateralized by SVMWC’s real property.
  • Between May 2020 and July 2024, SVMWC may draw funds from the note in an aggregate principal amount not to exceed $4,946,660 as approved by the USDA.
  • SVMWC draws amounts when needed to pay for construction expenses. CoBank must receive USDA approval prior to extending the funds request by SVMWC.
  • Note balance on March 31, 2023 was $3,435,186.
  • SVMWC pays monthly interest to CoBank on the outstanding balance at a rate of the monthly LIBOR resetting weekly plus 1.75%. At SVMWC’s discretion, interest payments may be added to the note’s balance.
  • In 2024 the funds borrowed from CoBank will be paid by the USDA, and SVMWC will be subject to USDA Loan #2 (explained below).


SVMWC signed an agreement with the USDA stipulating that at the end of the USDA Rural Development Project financed by CoBank (see above), the USDA will pay the balance of the CoBank promissory note and obligate SVMWC to a 40-year term loan at an interest rate of the then prevailing interest rate or 3.5%, whichever is lower.

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