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​PENNVEST Programmatic Financing (Pro-Fi) Guidance



Programmatic Financing ("Pro-Fi") is an innovative financing vehicle that better aligns PENNVEST funding with the needs of utilities.  Pro-Fi shifts the traditional project-specific lending strategy to one that is more congruent with the utility planning model, matching the funding approval to the annual (or multi-year) cash flow needs of the utility.  Instead of issuing a binding commitment for a certain dollar amount  for a single project, a Pro-Fi funding package funds a Capital Improvement Plan (in entirety or in part) for a group of drinking water or wastewater projects so long as each individual project or phase of projects is eligible and prepared in compliance with program requirements.  By shifting from short-term project financing to long-term program financing, as many larger private and government-owned utilities typically implement for infrastructure needs, the Pro-Fi program:  1) helps PENNVEST develop strong, lasting relationships with such entities as repeat borrowers; 2) allows PENNVEST to extend  program subsidies to  benefit residential customers in these larger systems; and, 3) ensures long-term funding is available to facilitate timely replacement of deteriorating infrastructure.  The White Paper approved by the PENNVEST Board at its July 17, 2019, Board Meeting authorizing Pro-Fi is attached in Appendix A, following the form used for the recommendation to PENNVEST for Pro-Fi projects from the Department of Environmental Protection ("DEP") (Appendix B).


No special appropriation has been budgeted for this initiative.  PENNVEST will make funding available from its existing budgeted funds.


Applicants may be either public or private entities who are otherwise eligible for PENNVEST programs. 


All projects otherwise eligible for financing under the State Revolving Fund and have an approved Capital Improvement Plan ("CIP") enacted by its governing body.  In addition to funding traditional drinking water or wastewater projects through Pro-Fi, PENNVEST can fund stormwater projects, green infrastructure projects, conservation easements and other types of restoration projects for wetlands, streambanks, and watersheds through a non-point source Pro-Fi funding award. 


Pro-Fi funding awards are all loan at county cap rates with a 20–year repayment term.  Pro-Fi projects are not eligible for grant or principal forgiveness awards.  If applicants want to be considered for grants, principle forgiveness, and/or an extended term, then an application must be submitted under the traditional PENNVEST funding program.


All applications shall be submitted through the PENNVEST Portal and processed through traditional workflows.  Additionally, the following will apply:

  1. PENNVEST, DEP, and DCED will rank all applications on the entire scope of the program that includes all project phases included in the application;

  2. Environmental Assessments may be completed by each phase when applicable.  All permits and environmental clearances need to be done for the first phase to be considered by the Board;

  3. Funding requests should fall within a 3 year time period of a CIP and should contain the total dollar amount requested, the maximum dollar value per year, and the number of years the request covers.  Example 1:  $150M over 3 years with a maximum of $50M per year.  Example 2:  $100 M over 3 years with $50M year 1, $25M year 2, and $25M year 3;

  4. Applicants shall include in their funding request:

    A.   A copy of the adopted CIP with the anticipated projects for funding identified;

    B. Documentation that the CIP has been approved by the entity's governing body; and,

    A copy of the resolution, ordinance, or other action authorizing the Pro-Fi funding request;

  5. The PENNVEST Project Specialist responsible for the application shall designate the project as a Pro-Fi project during the  Ranking and Review phase of application consideration;

  6. Pro-Fi projects will not be eligible for Letters of No Prejudice;

  7. Pro Fi projects will not be eligible for changes to the scope of the project;

  8. PENNVEST Project Specialists will label project documents according to phase for ease of identification and processing;
  9. PENNVEST will conduct its cost effectiveness analysis for all phases in the funding request prior to approval of a Pro-Fi application; and,

  10. Pro-Fi projects must satisfy all federal application and funding requirements to be considered by the PENNVEST Board.


PENNVEST Project Specialists will coordinate the review and processing of subsequent phases for a Pro-Fi project and will coordinate notifying the supporting agencies and PENNVEST staff when subsequent phases are ready for settlement. 

To satisfy permitting and environmental approval requirements for subsequent phases of Pro-Fi projects, DEP will complete and upload the form attached hereto as Appendix B to the traditional Ranking and Review Documents tab under the DEP review section.


The Pro-Fi will be listed in the Intended Use Plan for the total amount approved and in the Project Priority List for the total amount requested.

Appendix A - Programmatic Financing White Paper

Appendix B - DEP Recommendations Form