Community Programs

Community Programs consists of Water and Wastewater (WW) and Community Facilities (CF) programs. Our WW programs provide loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities. Community Facilities programs develop essential community facilities for public use in rural areas.

Minnesota Highlights

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Water and Wastewater Programs

Who is eligible and how do I apply?
Public entities, Indian tribes and nonprofits. Applications are made with a local Rural Development office.

Are there population limits?
Projects must be lcoated in a rural community of 10,000 people or fewer.

What types of projects are eligible?
Funds may be used to build, repair or improve public water, wastewater, or storm water collection and treatment systems.

Is this a loan and grant program?
Yes. The grant amount is determined by the area's median household income and project affordability. Rural Development works with each community to ensure a loan/grant split that keeps monthly user rates affordable.

What are terms and conditions on loans?
Interest rates are set quarterly based on an index of current market yields for municipal obligations. Repayment period is a maximum of 40 years. Loan guarantees also are avalaible through lending institutions.

Does Rural Development have programs that assist with solid waste management?
Yes. The solid waste management grant program provides technical assistance or training to help communities reduce or eliminate pollution and improve the planning and management of solid waste sites. Eligible entities include nonprofits and public bodies. Applications are accepted Oct. 1 to Dec. 31 each year.

Useful links:

Community Facilities Programs

Who is eligible and how do I apply?
Public entities, Indian tribes and nonprofits. Applications are made with a local Rural Development office.

Are there population limits?
Projects must be lcoated in a rural community of 20,000 people or fewer.

What types of projects are eligible?
Essential buildings, equipment and vehicles. Examples include schools, libraries, childcare, hospitals, medical clinics, assisted living facilities, food shelves, fire and rescue stations, police stations, community centers, public buildings, transportation, fire trucks, ambulances, police cars, utility vehicles, emergency response equipment and necessary equipment to improve a public facility.

Is this a loan and grant program?
Yes. However, grant funding is limited. Both direct loans and loan guarantees are avalaible.

What are terms and conditions on loans?
Direct loans can be made for up to 100 percent of market value with a 40-year term or the life of the security. For guaranteed loans, the terms and conditions are set by the lender.

I am a lender and need more information on guaranteed loans. Where can I go?
Visit our national office website for more details on loan guarantees, including forms, eligibility and guidelines. You can also contact a Minnesota Rural Development office and visit with an area specialist.

Useful links:

Other Programs

Are there other programs avalaible?
Yes. The Rural Community Development Initiative (RCDI) program provides technical assistance and training funds to qualified intermediary organizations to develop their capacity to undertake housing, community facilities, and community and economic development projects in rural areas. For more information, visit the national website or contact Rick Jackson at the state office in St. Paul.