Grant Program to Establish a Fund for Financing Water and Wastewater Projects

This program helps qualified nonprofits create revolving loan funds that can provide financing to extend and improve water and waste disposal systems in rural areas.

An applicant must be a private organization, organized as a non-profit corporation. The applicant must have the legal capacity and authority to perform the obligations of the grant. The applicant must have sufficient expertise and experience in making and servicing loans.

RUS assistance for grant projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as; population, low income, unemployment; health and sanitary problems. RUS financed facilities will not be inconsistent with any development plans of the State, multi-jurisdictional area, county, or municipality in which the proposed project is located.

Applicants must provide funds from other sources equal to at least 20 percent of the RFP grant.

Fiscal year 2025: Grant funds used to help nonprofits create a revolving loan fund for eligible water and wastewater systems for: pre-development costs for water and wastewater treatment projects; and short-term small capital improvement projects that are not part of the regular operations and maintenance. Terms for the loans include maximum $200,000 loan per borrower, a 10-year maximum term, and with negotiated interest rates.