 |
Iowa |
|
Water and Waste Disposal Loans and Grants
Water and Waste Disposal Loans and Grants are made to construct, extend, or improve water and waste disposal systems in rural areas and towns.
Eligibility Requirements:
- Population limitations of 10,000 or less.
- Funds are available to public entities such as municipalities, counties, special purpose districts, Indian tribes and non-profit corporations.
- Priority is given to public entities, in areas with less than 5,500 people.
- Applicants must be unable to obtain funds from other sources at reasonable rates and terms.
- Preference will be given to requests which involve the merging of small facilities and those serving low-income communities.
Loan Terms:
- The maximum term for all loans is 40 years; however, no repayment period will exceed state statutes or the useful life of the facility.
- Interest rates:
- The poverty rate is appropriate if the median household income of the service area is below 80% of the state nonmetropolitan median household income ($31,984) and the loan is to upgrade existing facilities or construct new facilities required to meet applicable health or sanitary standards. Currently, the poverty rate is 4.5%
- The intermediate rate applies to loans that do not meet the requirements for the poverty line rate or for which the median household income in the service area is not more than 100% of the nonmetropolitan median household income of the state ($31,981). The intermediate rate is midway between the poverty and market rates.
- The market rate applies to all loans that do not quality for the poverty or intermediate rates. The market rate is adjusted quarterly based on a bond buyer index.
- The interest rates change quarterly based on the bond market. Please contact the Rural Development Area Office in your area for the current interest rates.
- Guaranteed loans may be made for the same purpose as direct loans. They are made and serviced by commercial lenders. Guarantees can be made for up to 90 percent of any loss of interest and principal on the loan.
Grants:
- Grants are considered only after a determination is made on the maximum amount of loan the community can afford and still have reasonable user rates. When those and other available funds are not sufficient to complete the project as the Borrower and USDA Rural Development have agreed upon, they may be considered for grant funds.
- Applicants will be considered for grant assistance when the debt service portion of the average annual user cost (for users in the service area) exceeds the following percentages of the median household income (MHI):
- 0.5 percent when the MHI of the service area is below the poverty line or below 80 percent (whichever is higher) of the state nonmetropolitan median household income ($31,984).
- 1.0 percent when the MHI of the service area exceeds the 0.5% requirement but is not more than 100 percent of the state nonmetropolitan household income ($31,981).
- Grants may not be in excess of the following percentages (whichever is higher) of the eligible project development costs.
- 75% when the MHI of the service area is below the poverty line or below 80% of the state nonmetropolitan median household income ($31,984).
- 45% when the MHI of the service area exceeds the 75% requirement but is not more than 100% of the statewide nonmetropolitan median household income ($31,981).
Rural Water Circuit Rider Technical Assistance
- Iowa Rural Water Association circuit riders provide on-site technical assistance to help assure cost-effective
operation of water and waste disposal systems. Circuit riders are available to assist municipalities, counties or water systems with day-to-day
operation, financial and management problems. The assistance is provided at no charge and may be requested by officials of the systems or by
Rural Development personnel.
Back to Community Programs
Home
| Accessibility Statement
| Nondiscrimination Statement
| Privacy Statement
| RD 2007 Farm Bill
Rural Development National Office
| USDA Home Page
| FirstGov Web Portal
| Alternative Dispute Resolution (ADR)
Please send any comments or suggestions to:
keith.bastow@ia.usda.gov
Iowa Rural Development
Revised on: July 21, 2004