- Grantor(s): USDA
- Eligible Applicants: Federally-Recognized Tribe, Municipal Government, Non-Profit, State Government
- Eligibility Factors: This program assists qualified applicants in the above-identified categories who are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:
- Most state and local governmental entities
- Private nonprofits
- Federally-recognized tribes
- Areas that may be served include:
- Rural areas and towns with populations of 10,000 or less — check http://eligibility.sc.egov.usda.gov/
- Tribal lands in rural areas
- Colonias
- Grant Link: https://www.rd.usda.gov/programs-services/water-environmental-programs/water-waste-disposal-loan-grant-program
- Applications accepted year-round
This USDA program provides funding in the form of long-term, low-interest loans and grants (when funding is available) for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas. These funds may be used to finance the acquisition, construction or improvement of:
- Drinking water sourcing, treatment, storage and distribution
- Sewer collection, transmission, treatment and disposal
- Solid waste collection, disposal and closure
- Storm water collection, transmission and disposal
In some cases, funding may also be available for related activities such as:
- Legal and engineering fees
- Land acquisition, water and land rights, permits and equipment
- Start-up operations and maintenance
- Interest incurred during construction
- Purchase of facilities to improve service or prevent loss of service
- Other costs determined to be necessary for completion of the project
See 7 CFR Part 1780.7 and 1780.9 for a complete list of eligible uses of funding under this program.
Interested applicants should contact the USDA for details and current interest rates applicable for their project and jurisdiction.
Are there additional requirements?
- Borrowers must have the legal authority to construct, operate and maintain the proposed services or facilities.
- All facilities receiving federal financing must be used for a public purpose.
- Partnerships with other federal, state, local, private and nonprofit entities that offer financial assistance are encouraged.
- Projects must be financially sustainable.
The USDA accepts applications on a year-round basis. Said applications may be filed electronically using RD Apply.
The USDA explained the purpose of these loans and occasional grants:
“This program helps very small, financially distressed rural communities extend and improve water and waste treatment facilities that serve local households and businesses. Good practices can save tax dollars, improve the natural environment, and help manufacturers and businesses to locate or expand operations.”