What does this program do? This program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

Who may apply? This program assists qualified applicants who are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:

• Most state and local governmental entities
• Private nonprofits
• Federally-recognized tribes

What is an eligible area? Areas that may be served include:

Rural areas and towns with populations of 10,000 or less — check eligible addresses

• Tribal lands in rural areas
• Colonias

What kinds of funding are available? Long-term, low-interest loans

• If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable.

How may the funds be used? Funds may be used to finance the acquisition, construction or improvement of:

• 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

In some cases, funding may also be available for related activities such as:

• 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 costs determined to be necessary for completion of the project
• See 7 CFR Part 1780.7 and 1780.9 for a complete list

What is the loan term and rate? Up to 40-year payback period, based on the useful life of the facilities financed

• Fixed interest rates, based on the need for the project and the median household income of the area to be served

Are there additional requirements? Borrowers must have the legal authority to construct, operate and maintain the proposed services or facilities.

• All facilities receiving federal financing must be used for a public purpose.
• Partnerships with other federal, state, local, private and nonprofit entities that offer financial assistance are encouraged.
• Projects must be financially sustainable.