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Craft3 Extends $1M Lifeline to Emergency Septic Replacement Loan Program
Published on
January 28, 2026
Author
Clean Water Loan program will expire March 2026 without legislative action
Craft3, a nonprofit community lender serving Oregon and Washington, will announce on Monday, February 2nd, that it is contributing $1 million of its own capital to keep Oregon’s Clean Water Loan program operating through March 2026. Craft3 will make the announcement at a meeting of the Oregon Legislature’s Water Caucus in the State Capitol. The organization has identified EPA funds that could support the program long term and is looking to the legislature for $2 million in bridge funding to sustain the program through June 2027.
The Clean Water Loan program provides emergency loans to repair and replace septic tanks. A partnership between Craft3 and the state of Oregon, since 2016 it has provided funding that supported the completion of 350 septic projects. Loans include affordable interest rates and an operations and maintenance reserve of $2,000, helping homeowners avoid future problems by setting aside funds for system upkeep.
For more details about the loan program: Clean Water Loan Program – Fact Sheet
“Craft3 is proud to step in with $1 million to ensure homeowners facing emergency septic failures are not left without options,” said Craft3 CEO Elisabeth Zeller. “Since 2016, this program has helped hundreds of families stay in their homes, protected drinking water, and prevented disease in rural communities. But as a nonprofit lender, we cannot sustain the program beyond March 2026 without renewed state investment.”
Broken septic systems pose serious risks to public health and the environment, including contamination of drinking water and closure of beaches and waterways due to fecal contamination. Failing septic systems also contribute to harmful algal blooms that can cause sickness and death in humans, pets and livestock who come in contact with or drink the water.
“This is an incredibly cost-effective program,” Zeller continued. “The state bears no financial risk for the Clean Water Loan portfolio. Any losses are born by Craft3. The cost of prevention far outweighs the cost of cleanup or hospitalization for preventable diseases.”
Bipartisan support for statewide septic system repairs
Lawmakers from both parties supported the program through HB 2168, which passed unanimously out of committee in 2025. The program also aligns with groundwater protections in SB 1154, a groundwater protection bill proposed by Gov. Tina Kotek and passed by the final vote of the Oregon House during the 2025 legislative session.
“The Clean Water Loan program is a smart, cost-effective investment that helps rural Oregonians fund emergency repairs while protecting groundwater and public health,” said Rep. Bobby Levy. “It’s a program that works, carries no financial risk to the state, and deserves continued funding so families in Eastern Oregon can stay in their homes.”
“For communities across Oregon, the Clean Water Loan program protects public health and sensitive ecosystems.” said Rep. Pam Marsh “It’s a practical, proven program that keeps families in their homes and has kept over $170 million in housing stock habitable since 2016.”
A lifeline for rural homeowners
The State of Oregon requires homeowners to fix septic failures quickly. For many families, the Clean Water Loan program is the only way to comply with the law and stay in their homes.
“I discovered my 40-year-old septic tank and drain field were inadequate and failing while doing a routine inspection,” said Scott Gregory, a homeowner in Coos Bay. “This work alone cost over $2,000. After getting three bids, the lowest for replacing the system to current code came in at $18,000. I work two jobs. I work at least six days a week, a minimum of 10 hours a day. There was no way I was going to be able to pay for this work. The banks were no help. Without a loan from Craft3, I would be letting my faulty system slowly break down, polluting our soil and making my home unlivable. The loan is secured by the home and will be paid in full. This is not charity. This is a small helping hand that protects homeowners and our precious natural resources.”
