Water And Waste Disposal Direct Loan Program:
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PURPOSE
The Water and
Waste Disposal Direct Loan Program provides funds used to construct or improve
water, waste water, and solid waste facilities in rural communities throughout
ELIGIBILITY
Public Bodies
Non-Profit Organizations
Federal & State Recognized Indian Tribes
Utility districts located in rural areas, cities, and towns with populations of 10,000 or less
FUND USE
Initial operating expenses
Purchase of necessary equipment
Pay cost of land acquisition, rights-of-way, permits, etc.
Pay interest on loan until facility is self-supporting (up to three years)
Pay professional fees (legal and engineering) for project development
Other costs related to building, operating, and maintaining rural water, waste, & treatment facilities
Construct, enlarge, extend, or otherwise improve water or waste disposal facilities
Refinancing existing debts if debts, (1) are secondary part of loan amount (less than 50% of the total loan), (2) were incurred for facility or service currently being financed, (3) no new arrangements are made with present creditors to extend or modify the terms of existing debts
RATES
Poverty Rate – Set at 4.5%
Intermediary Rate – Set halfway between the Market and the Poverty rates
Market Rate – Indexed to the eleventh bond buyers rate as determined by the U.S. Treasury Department
Rate Eligibility is determined by the Median Household Income (MHI) of the area being served and the type of project
TERMS OF REPAYMENT
Maximum repayment period – 40 years
RESTRICTIONS
Rural areas, towns, & cities maximum population – 10,000 or less
APPLY TODAY
To get started
building your future today, contact your Local Area Office
to fill out an application packet and begin the approval process.