Water and Waste Disposal Direct Loans and Grants

Purposes: To develop water and waste disposal systems in rural areas and towns with a population not in excess of 10,000. The funds are available to public bodies, non-profit corporations and Indian tribes.

Eligibility: To qualify, applicants must be unable to obtain the financing from other sources at rates and terms they can afford and/or their own resources. Funds can be used for construction, land acquisition, legal fees, engineering fees, capitalized interest, equipment, initial operation and maintenance costs, project contingencies, and any other cost that is determined by the Rural Development to be necessary for the completion of the project. Projects must be primarily for the benefit of rural users.

Terms: The rates that are used to calculate these loans are subject to change quarterly. Loans are made based on the applicant's authority and the life expectancy of the system's project, which may be up to the maximum of 40 years.

Requirements: The material submitted with the application should include an application SF 424.2, two copies of the Preliminary Engineering Report, Environmental Report, population and median household income of the area to be served, current audits or financial information for the past three years, evidence of outstanding indebtedness, organizational documents, the applicant's IRS tax identification number, DUNS number, a proposed operating budget, and some certification forms. This loan program is based on repayment ability. These loans are calculated on similar systems rates, median household income, financial status of the system, and outstanding indebtedness. There are some systems that qualify for grant funding; however, grant funding availability is limited. Applicant contributions show ownership in the projects and are often recommended. These applicant contributions are the first money spent in any project.

Basic Instruction: RUS Instruction 1780

Where to apply: Applications are accepted at any time through our Rural Development State and Area Offices. To locate an office near you go to http://www.rurdev.usda.gov/recd_map.html