Water and Waste Revolving Loan Fund Grants
Purpose: To assist communities with water and wastewater systems. Qualified private non-profit organizations will receive RFP grant funds to establish a lending program for eligible entities. This grant program is to serve a rural area with a population not in excess of 10,000.
Eligibility: Grants may be made to a private non-profit corporation that has a tax exempt status from the Internal Revenue Service, has the legal capacity and authority to carry out the purpose, has a proven record of successfully operating a revolving loan fund to rural areas, has no delinquent debt to the Federal Government nor any outstanding judgments to repay a Federal debt, and demonstrates that is possesses the financial, technical and managerial capacity to comply with Federal and State laws and requirements.
Requirements: The grant recipients will use the grant funds to establish a revolving loan fund. The loans will be made to eligible entities to finance pre-development costs of water and wastewater projects or short-term small capital improvement projects not part of the regular operations and maintenance of current water and wastewater systems. The amount of financing to an eligible entity shall not exceed $100,000 and shall be repaid in a term not to exceed 10 years. The rate shall be determined in the approved grant work plan.
The applicant should provide evidence of legal existence and authority in the form of certified copies of organizational documents and a certified list of directors and officers with their respective terms. Also, the applicant should provide evidence of tax exempt status from the IRS, a project proposal, a project summary, a needs assessment, goals and objectives, a brief written narrative, a work plan, a budget and budget justification, goals and objectives, the latest financial information for the past 3 years along with pro forma balance sheet, projected income and cash flow and other certifications requested.
Rural Development announces its Revolving Fund Program (RFP) application window for Fiscal Year (FY) 2014. Rural Development announces the available funding of $1,000,000 and maximum amounts for RFP competitive grants for the fiscal year. Deadline for applications is July 15, 2014.
Qualified private non-profit organizations will receive RFP grant funds to establish a lending program for eligible entities. Eligible entities for the revolving loan fund will be the same entities eligible to obtain a loan, loan guarantee, or grant from the Rural Development Utilities Programs Water and Waste Disposal loan and grant programs.
The RFP is authorized under the 2002 Farm Bill (the Farm Security and Rural Investment Act of 2002), Public Law 107-171.