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WATER AND WASTE DISPOSAL LOANS AND GRANTS Purpose: To increase the availability of public water and waste disposal systems in rural areas thereby reducing pollution and ensuring rural residents a reliable source of potable water Program Type: Loan guarantees, direct loans and, if needed to keep user rates reasonable, grants Eligible Applicants: Public bodies, special purpose districts, Indian tribes, and nonprofit corporations Eligible Areas: Cities and unincorporated rural areas with populations of 10,000 or less; preference give to areas of 5,500 or less. Authorized Purposes: Funds are used to develop new water and wastewater systems, enlarge or rehabilitate existing systems, and merge small systems Rates and Terms: Interest rates for guaranteed loans are negotiated with the lender; rates for the direct loan is based on market conditions; loan terms are 40 years but not to exceed the useful life of the facility When to Apply: Year round Who to Contact: Kentucky Rural Development's Utilities Programs office can be reached at 859/224-7336 |