Linked Deposit WQRLF & DWRLF


The Linked Deposit Program was designed to provide WQRLF backing of private financing to encourage implementation of non-point source best management practices and other capital improvements that will reduce the delivery of pollutants to the Chesapeake Bay. The Maryland Water Infrastructure Financing Administration (MWIFA), works with approved lenders to back loans to private borrowers and reduce the costs of borrowing by providing the backing of the MWIFA through Certificate of Deposit (CD) purchase or bond. The below-market rate of interest loan that is passed on to the borrower to fund certain water quality and drinking water capital projects. The below-market interest rate loan the borrower receives is "Linked" to the below-market rate of interest investment MWIFA makes with a participating lender. Any financial institution that meets the following lender qualifications is eligible to participate in the program:

  1. Is eligible to make commercial loans
  2. Is a State Treasurer's Office approved depository of state funds
  3. Agrees to receive linked deposits
  4. Is insured by the Federal Deposit Insurance Corporation

Maryland lending institutions that constitutes the Linked Deposit network are listed below. Applicants are encouraged obtain the best financing package by contacting several lenders to compare rates and fees.

The applicant is responsible for contacting and selecting a lender from the list provided below. Participating lenders will be accountable for processing, underwriting and servicing the loan. The bank will also evaluate the credit worthiness of an applicant according to the lenders own underwriting criteria. Each bank will be permitted to charge origination, servicing and other such fees normally associated with loans issued by the bank. Accordingly, the bank will assume all risk of default and neither the State nor MDE will be liable to reimburse a participating bank for any losses or expenses associated with loans under this program. The loan agreement is between the lender and the applicant, not MDE or MWIFA.

The Linked Deposit Program can provide credit assistance for:

  • private water system facing expensive capital improvements, such as treatment facility upgrades, installing or upgrading storage facilities, and distribution line replacements.
  • complement federal and State grant programs for farmers facing expensive investments in structures or farm equipment for eligible non-point source nutrient best management practices (BMPs), enabling farmers to reduce soil erosion and protect water quality
  • farmers share of eligible capital BMPs funded under agricultural cost-share programs
  • homeowner associations to address needs such as failing  storm water management facilities
  • homeowners to repair or replace failing on-site septic systems to cover costs not eligible for BRF reimbursement, and for other beneficial non-point source pollution control on private lands

The Linked Deposit Program and the WQRLF

In the 1997 session of the Maryland General Assembly, the law governing this loan program was amended to allow the Department to provide low interest loans to private entities for eligible, non-point source pollution control projects. EPA is encouraging states to broaden the types of projects funded through the loan program, particularly for non-point source pollution control. In the 1998 session of the General Assembly the law was further amended to allow loans through the Linked Deposit program.

In addition, it has been recognized in Maryland that private landowners, including farmers, play a major role in the reduction of nutrients reaching the Chesapeake Bay and its tributaries. The loan program is a source of low cost financing to assist the private sector in these efforts. Expanding the use of the WQSRF to private entities was included as a recommendation in the 1994 "Governors Blue Ribbon Panel Report on Funding the Chesapeake Bay 40% Nutrient Reduction Goal".

Elements of the Linked Deposit Program

This Linked Deposit program will allow the MWIFA to enter into partnerships with community lending institutions, to provide an easy and convenient way for farmers and other private entities to take advantage of this affordable loan program for implementing eligible non-point source capital improvements. Using the lending institutions that are in the community, where farmers and merchants and private citizens bank can provide capital for water quality improvement at reduced cost.

MDE and the Maryland Department of Agriculture and Department of Natural Resources participate in a project qualification process that includes approval of project and procurement. The borrower shall obtain this "Certificate of Qualification" prior to applying for a loan, from the local approving authority (i.e.: Soil Conservation District, Health Department). The certificate will be required prior to applying for a loan.

Following a successful credit evaluation, the lender will send to MDE an investment request form identifying the landowner, loan terms, and a copy of the Certificate of Qualification. Upon approval of the financing terms by the MWIFA, and project eligibility by the Water and Science Administration (both within MDE), funds from the WQRLF will be invested with the lender equal to the amount of the loan to the borrower, for a term equal to the loan, but in no case longer than 30 years. The interest rate on the deposit will be discounted below the lenders normal cost of funds, and this interest saving will be passed on to the borrower. As construction funds are drawn, the borrower shall in-turn make payments on the loan to the lender. The lender will then make payments of principal and interest to MWIFA in direct proportion to the borrowers repayment of the amortized loan amount.

Relationship of Linked Deposit Program to Agriculture​

While grants from the Maryland Department of Agriculture will pay for much of the cost of these capital projects, farmers must pay at least 12.5% of the project costs under the existing cost share program. In some instances, the​se costs exceed the maximum grant allowances, resulting in a greater contribution by the farmer. The Linked Deposit loan mechanism can assist the farming community by lowering the rate on loans available from community-based commercial lending institutions, for eligible project costs.

The Linked Deposit Loan Program cannot be used to design and construct facilities to address point source pollution control problems. The federal Clean Water Act precludes the use of WQSRF Program funds for wastewater ("point source") projects at privately owned facilities. However, distributed infrastructure including non-point source pollution control projects on privately owned land are eligible.


For Bank Use only:

Deposit Agreement.pdfDeposit Agreement.pdf (Fillable Adobe Acrobat File)



Linked Deposit Certificates of Qualification

These Qualification Forms are intended to determine project eligibility for participation and is not a funding commitment. Funding is limited and subject to availability of funds on a first come first served basis.

Agricultural Nonpoint Source Projects (Fillable Adobe Acrobat File)

For Septic, Stormwater and Erosion Control Projects:
Nonpoint Source Water Pollution Control Projects (Fillable Adobe Acrobat File)

Underground Storage Tank Water Pollution Control Projects (Fillable Adobe Acrobat File)

Brownfields Cleanup Project(Fillable Adobe Acrobat File)

Contact Information

For general information on the Linked Deposit Program, please contact (410) 537-3119​

Maryland Soil Conservation District (SCD) Offices

For assistance in developing a non-point source Best Management Practice (BMP) on agricultural land, please contact the Soil Conservation District office for your county:

Allegany (240) 609-3493
  Harford (410) 638-4828
Anne Arundel (410) 571-6757   Howard (410) 313-0680
Baltimore County (410) 527-5920   Kent (410) 778-5150
Calvert (410) 535-1521   Montgomery (301) 590-2855
Caroline (410) 479-1202   Prince George's (301) 574-5162
Carroll (410) 848-8200   Queen Anne's (410) 758-1694
Catoctin (301) 695-2803
  St. Mary's (301) 475-8402
Cecil (410) 398-4411   Somerset (410) 621-9310
Charles (301) 638-3028   Talbot (410) 822-1577
Dorchester (410) 228-5640   Washington (301) 797-6821
Frederick (301) 695-2803   Wicomico (410) 546-4777
Garrett (301) 501-5886
  Worcester (410) 632-5439

Last Updated on 02/03/2022

List of Eligible Project Categories

Nonpoint Source Projects Eligible for SRF Loans Through Linked Deposit Program include:

Agricultural Best Management Practices:

  • Grade Control Structures/Terracing
  • Establishment and protection of riparian buffer
  • Stormwater Management Ponds and Drainage
  • Manure Management Facilities and Equipment
  • Composting Facilities
  • Stream Protection (Exclusionary Fencing)
  • Grazing Land Management System (Fencing)
  • Wetland Restoration and Protection

Other Non-Point Source Best Management Practices:

  • Stream and Wetland Restoration (NOT associated with mitigation for permit or violation)
  • Shoreline Erosion Control and Living Shoreline Restoration 
  • Existing Stormwater Management Facility Retrofit/Repair
  • Planting and Protection of Riparian Forest Buffer and Exclusionary Fencing on Streams
  • Correction of Failing Septic Systems for any costs not eligible for BRF grant
  • New Stormwater Management Facility (if community was developed prior to implementation of State stormwater management requirements)

Elements of the Linked Deposit Program as Applied to the DWRLF

MDE develops an eligible project list through an annual priority solicitation. Private water systems which are selected and included in the Intended Use Plan (IUP) will be offered the option of applying for funding through MDE similar to a publicly owned system, or through an eligible lender under the "Linked Deposit" program. If the applicant chooses Linked Deposit, it is recommended that several lenders be contacted from the list provided and compare rates and fee structures and select the institution that provides the best financial package. The responsibility for selection of a lender rests solely with applicant, MWIFA only requires the lender be an STO approved depository of state funds or have an investment agreement.

Following a successful credit evaluation, the lender will send to MDE an investment request form identifying the landowner, loan terms. Upon approval of the financing terms by MWIFA, funds from the WQSRF will be invested with the lender equal to the amount of the loan to the borrower, for a term equal to the loan, not to exceed 30 years. The interest rate on the deposit will be discounted below the lenders normal cost of funds, and this interest saving will be passed on to the borrower. As construction funds are drawn, the borrower shall  make payments on the loan to the lender. The lender will make semi-annual payments of principal and interest to MWIFA, in direct proportion to the borrowers scheduled payments.

Projects Eligible for DWSRF Loans through Linked Deposit Program may include:

  • Water Main Distribution Line Replacements
  • Water Storage Facilities and Source Water Protection
  • Transmission and Distribution Line Replacement
  • Planning and Design of Drinking Water Projects
  • Upgrade and Repair of a Facility to Maintain Compliance

Linked Deposit Eligible Lenders

(State Treasurer's Office Approved Depositories of State Funds)

**Note: Applicants may apply to any branch office of a lender listed below and are encouraged to shop for the best rate / terms.

 ***Certain Bank branches may be unaware of program details. We hope to get more contact info soon. Please have the bank contact Michael Roberts at MDE for details.

1880 Bank - Judann Culver, 410-228-5600

Bank of America  - Tammy Kennedy Nichols, 410-241-3181

BB&T Branch Banking & Trust - Tonya Hill, 410-626-1470

Capital One, N.A. - Karla LaStrap, 703-720-6733,

Citibank, N.A. - Nadia Barbar 703-234-7335,

   Meghan Horan 212-816-8485   

•  The Columbia Bank Angie Harcum   410-730 5086                  

​​• Community Bank of the ChesapeakeKarrie Wood, 240-427-1090

 Eagle Bank - Michael Flynn 240-497-2040

First United Bank & Trust - Leah C. Gregg  301-533-2284​

Frederick County Bank - Crystal Wiles, 240-529-1506,

•  Maryland Partners Bank - David D. Duncan, 540-376-3825,

Old Line Bank - Sandra Burnett, 301-430-2500,

PNC BankDonna F. Ryan,  410-237-4572

• Provident State Bank - Renee' D. Smith   410-673-2401

Sandy Spring Bank - John R. Walker,  301-774-6400  ext. 6648 (commercial borrowers only)

• Shore United Bank - Laura Heikes 410-819-8296

TD Bank - Kevin M. Wiley, 215-604-6264

Wells Fargo Bank- David N. Ryder, 202-414-3918


Agricultural Lender Contacts:

Mid-Atlantic Farm Credit (All Eastern Shore Counties)

Offices: Chestertown 410-778-0757, Denton 410-479-2323 , East New Market 800-573-3028,

Salisbury 410-742-7191, Pocomoke City 410-957-1181

Colonial Farm Credit (Anne Arundel, Calvert, Charles, St. Mary's, Prince George's Counties)

Office: Hughesville 301-274-3167

Mid Atlantic Farm Credit (Cecil, Harford, Baltimore, Howard, Carroll, Frederick, Montgomery, Washington Counties)

Offices: Bel Air 410-838-5066, Hagerstown 301-416-7141, Frederick 301-416-7141,

Farm Credit of the Virginias (Allegany & Garrett Counties)

Oakland 301-334-8541




A. Per state statute, only banks eligible as depositories of state funds, as determined by the State Treasurer's Office, can participate in the Linked Deposit Program. The bank list is subject to change. MAFC approved by statute.
B. Participation in the Linked Deposit Program is at the discretion of lender / bank.

Last updated 2/2022​​​​

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