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Grant Program To Establish A Fund For Financing Water And Wastewater Projects

Program Descriptions

Program Number



Grant Program To Establish A Fund For Financing Water And Wastewater Projects


Federal Agency




Consolidated Farm and Rural Development Act, as amended, Section 6002, Public Law 107-171, 7 U.S.C. 1926e.






To make grants to private, nonprofit organizations to establish a revolving loan fund to make small, short term loans for pre-development or small capital water or waste disposal projects.


Types of Assistance

Project Grants.


Uses and Use Restrictions

Grant funds will be used to establish and maintain a revolving loan fund to finance pre-development costs associated with proposed water and wastewater projects or with existing water and wastewater systems, and short-term costs incurred for replacement equipment, small-scale extension of services, or other small capital projects that are not part of the regular operations and maintenance activities of existing water and wastewater systems.


Eligibility Requirements

Applicant Eligibility

An applicant must be a private organization, organized as a non-profit corporation. The applicant must have the legal capacity and authority to perform the obligations of the grant. The applicant must have sufficient expertise and experience in making and servicing loans.

Beneficiary Eligibility

Municipalities, counties, and other political subdivisions of a State, such as districts and authorities, associations, cooperatives, corporations operated on a not-for-profit basis, Indian tribes on Federal and State reservations and other Federally recognized Indian tribes. Facilities shall primarily serve rural residents and rural businesses. The service area shall not include any area in any city or town having a population in excess of 10,000 inhabitants according to the latest decennial census of the United States. The loan recipient must be unable to finance the proposed project from their own resources or through commercial credit at reasonable rates and terms. The loan recipient must have or will obtain the legal authority necessary for owning, constructing, operating and maintaining the proposed service or facility, and for obtaining, giving security for, and repaying the proposed loan.


Evidence of legal capacity, economic feasibility, ability to administer and service a revolving loan fund, commitment and sources of financial resources the organization controls.


Application and Award Process

Preapplication Coordination

The standard application forms furnished by the Federal agency and required by OMB Circular No. A-110. This program is excluded from coverage under E.O. 12372.

Application Procedure

The Water and Environmental Programs of the USDA Rural Utilities Service administers the program. Application Form SF-424 is filed at the National Office in Washington, DC, from which assistance may be obtained. This program is subject to the provisions of OMB Circular No. A-110.

Award Procedure

The Water and Environmental Programs staff in Washington, DC, will review and process the application. Following completion of application processing requirements and grant approval, funds are made available to the applicant.


To be determined by Secretary, USDA.

Range of Approval/Disapproval Time

From 30 to 60 days.


If an application is rejected, the reasons for rejection are stated fully. The applicant may request a review of this decision at the RUS National level.



Assistance Considerations

Formula and Matching Requirements

Applicants must provide funds from other sources equal to at least 20 percent of the RFP grant.

Length and Time Phasing of Assistance

A time limitation is not specified for the RUS grant funds. Funds will be awarded when all RUS requirements are met and the project can be completed on a timely basis.


Post Assistance Requirements


Periodic reports are to be made to the RUS servicing official.


Periodic audits should be made as part of the recipient's system of financial management and internal control to meet terms and conditions of the grants and other agreements. Audits should be completed in accordance with the requirements of OMB Circular No. A-133, Audits of States, Local Governments, and Nonprofit Organizations or RUS requirements, whichever apply.


Records and accounts are required to reflect the project operations.


Financial Information

Account Identification



(Grants) FY 07 $495,000 FY 08 est $0; and FY 09 est not reported.

Range and Average of Financial Assistance

Not available.


Program Accomplishments

Not available.


Regulations, Guidelines and Literature

7 CFR 1783, Grant Program to Establish a Fund for Financing Water and Wastewater Projects; The Revolving Fund Program 2005 Grant Application Guide.


Information Contacts

Regional or Local Office

Consult your local telephone directory for Rural Development local number. If no listing, get in touch with the appropriate Rural Development State Office listed in Appendix IV of the Catalog.

Headquarters Office

Assistant Administrator, Water and Environmental Programs, Rural Utilities Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 690-2670.

Web Site Address


Related Programs

10.760, Water And Waste Disposal Systems For Rural Communities


Examples of Funded Projects



Criteria for Selecting Proposals

RUS assistance for grant projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as; population, low income, unemployment; health and sanitary problems. RUS financed facilities will not be inconsistent with any development plans of the State, multi-jurisdictional area, county, or municipality in which the proposed project is located.


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