Water and Waste Disposal Loan and Grant Program

Link

https://www.rd.usda.gov/programs-services/water-waste-disposal-loan-grant-program

Additional Links

Fact Sheet

Deadline

Applications accepted on an ongoing basis

Sponsoring Organization

USDA Rural Development (USDA RD)

Purpose

Offers loan and grant funding to small, financially distressed rural communities to develop and improve water and waste treatment facilities in order to extend services and ensure reasonable user costs for rural households, businesses, and other users.

Funds can be used to finance the following acquisition, construction, and improvement projects:

  • Drinking water sourcing, treatment, storage, and distribution
  • Sewer collection, transmission, treatment, and disposal
  • Solid waste collection, disposal, and closure
  • Storm water collection, transmission, and disposal

Funding may be available in some cases to support related activities, including:

  • Legal and engineering fees
  • Land acquisition, water and land rights, permits and equipment
  • Start-up operations and maintenance
  • Interest incurred during construction
  • Purchase of facilities to improve service or prevent loss of service
  • Other necessary costs to complete a project

Amount of Funding

This program offers long-term, low-interest loans to eligible rural areas. Interest rates are fixed for the life of the loan with a payback period of up to 40 years. Rates are based on the need for the project and the median household income of the area to be served.

Applicants may qualify for a grant to supplement a loan in order to keep user costs reasonable, depending on the availability of funding.

Who Can Apply

Eligible applicants include:

  • Most state and local governmental entities
  • Private nonprofit organizations
  • Federally recognized tribes

Eligible areas include:

  • Rural areas and towns with population of 10,000 or less
  • Tribal lands in rural areas
  • Colonias

Use the USDA Rural Utilities Service Property Eligibility search tool to determine if an address is located in an eligible area.

All facilities funded through this program must be used for a public purpose. Partnerships with other federal, state, local, private and nonprofit entities are encouraged.

Geographic Coverage

Nationwide

What This Program Funds

Buildings and Facilities • Capacity Building • Equipment

Application Process

Application instructions, requirements, and other information can be found on the program website. Applications may be submitted through USDA's RD Apply online application system or through the appropriate state office.

Contact your local USDA Rural Development state office to discuss your specific project and the application process in further detail.

Contact

For program questions:
Contact the appropriate USDA Rural Development state office.

Topics This Program Addresses

Infrastructure