USDA Logo Rural Development Logo USDA Rural DevelopmentMainMasthead
SpacerHomeDividerAbout RDDividerNewsroomDividerAgencies & OfficesDividerPrograms & OpportunitiesDividerHelpDividerContact UsDividerEn Español
Search RD
Spacer
Go
Spacer
Browse by Audience
Spacer
Spacer
Browse by Subject
Spacer
Business
Community Development
Cooperatives
Energy
Housing
Utilities
Loans
Grants
Technical Assistance
Forms and Publications
Regulations and Guidance
Online Services
Left Navigation Menu Bottom

Water and Waste Disposal Guaranteed Loans

Purposes: To provide a loan guarantee for the construction or improvement of water and waste disposal projects serving the financially needy communities in rural areas.This purpose is achieved through bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting benefits.The water and waste disposal guarantee loans are to serve a population not in excess of 10,000 in rural areas

Eligibility: Guaranteed loans are made and serviced by lenders such as banks, savings and loan associations, mortgage companies and other eligible lenders under the Guarantee Loan Program. These funds are available to be used by public bodies, non-profit corporations and Indian tribes. To qualify, applicants must be unable to obtain the required credit without the loan guarantee from private, commercial or cooperative sources at reasonable rates and terms. Each borrower must have or will obtain the legal authority necessary to construct, operate and maintain the proposed facility and services. The facilities must be located in a rural area. All facilities financed under this provision shall be for public purposes. Guaranteed loans may be made in combination with direct loans.

Terms: The lender will structure repayment as established in the loan agreement between the lender and borrower. Normally, guarantees do not exceed 80 percent of the loan. Interest rates are fixed or variable and are determined by the lender and borrower subject to USDA Rural Development review and approval. The maximum time allowable for final maturity for a guaranteed Water and Waste Disposal loan will be limited to the useful life of the facility, not to exceed 40 years. Balloon payments at the end of the loan are prohibited.

Requirements:The material submitted with the application should include documentation of lender eligibility, 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, 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. In addition, the lender should also submit the proposed loan agreement, and financial feasibility analysis and report.

Basic Instruction: RUS Instruction 1779

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

About UWP
Spacer
Unselected BulletRUS
Spacer
Spacer
Unselected BulletHeadquarter Staff
Spacer
Spacer
Unselected BulletState Office Staff
Spacer
Spacer
Right Navigation Column Menu Bottom
Customer Resources Support
Spacer
Unselected BulletEngineering
Spacer
Spacer
Unselected BulletEnvironmental
Spacer
Spacer
Unselected BulletGIS
Spacer
Spacer
Unselected BulletInterest Rates
Spacer
Spacer
Right Navigation Column Menu Bottom
Environmental
Spacer
Unselected BulletGuidance
Spacer
Spacer
Unselected BulletEnv. Assessments
Spacer
Spacer
Unselected BulletEnv.Impact Statement
Spacer
Spacer
Unselected BulletEnvironmental Bulletins
Spacer
Spacer
Right Navigation Column Menu Bottom
Engineering
Spacer
Unselected BulletSelecting an Engineer
Spacer
Spacer
Unselected BulletPER
Spacer
Spacer
Unselected BulletContracts
Spacer
Spacer
Unselected BulletEngineering Links
Spacer
Spacer
Unselected BulletEngineering Bulletins
Spacer
Spacer
Right Navigation Column Menu Bottom
Last Modified:03/20/2014 
 
Footer Corner
RD Home | USDA.gov | Site Map | Policies and Links
FOIA | Accessibility Statement | Privacy Policy | Non-Discrimination Statement | Information Quality | FirstGov | White House