PROGRAM
DESCRIPTION: Funds are for community
water, sewer, storm sewer and solid waste systems.
TYPE OF ASSISTANCE: Technical
assistance in planning projects. Funding is by loans and grants.
ELIGIBILITY REQUIREMENTS: Applicants
are public bodies (city, township, county or special district), Indian
tribes, cooperatives or other nonprofit organizations. Service area under
10,000 in population. Applicant must be unable to borrow money elsewhere
at rates and terms to make the project affordable. Grants may be available
if the median household income of the borrower is at or below $46,993 (per
2000 Federal Census), and if needed to reduce annual costs of the system
to what similar communities are paying.
INTEREST RATE: Loan
interest rate depends upon the median household income of the borrower.
The rate can be as low as 4.5 percent, and will usually be no higher than
commercial bond rates.
TERM: Loan
term is up to 40 years. Security is usually a general obligation bond.
Repayment is by special assessments, user fees or property taxes.
CONTACT: Visit
your local USDA Rural Development office to fill out an application.
Minnesota
