Water and Waste Management

January 13, 2015


Water and waste management

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What does this program do?

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 that are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:

What is an eligible area?

Areas that may be served include:

What kinds of funding are available?

  • Long-term, low-interest loans
  • If funds are available, grants 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 existing facilities to improve service or prevent loss of service
  • Other costs determined to be necessary for completion of the project

What is the loan term and rate?

  • Up to 40-year payback period, based on the useful life of the facilities financed
  • Fixed interest rate
  • The interest rate is 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 non-profit entities that offer financial assistance are encouraged
  • Projects must be financially sustainable

Source: www.rd.usda.gov
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