A form of financial assistance under the Drinking Water State Revolving Fund (DWSRF) in which a loan is issued but does not require repayment, effectively functioning as a grant. State agencies may offer principal forgiveness (PF) to subsidize projects in Disadvantaged Communities (DACs), using criteria they develop to determine eligibility. Not all projects qualify for principal forgiveness; most receive a combination of repayable loans and principal forgiveness.
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