The purpose of Rural Development's Rural Utilities System Water and Waste Disposal Loan Program is to develop disposal systems, including solid waste disposal and storm drainage, in rural areas and towns with a population of 10,000 or less. This program provides grants, loans, and loan guarantees to develop facilities for public use in rural areas. The Maximum term on all loans is 40 years. Interest rates are set quarterly by Rural Development and depend on the median household income of the service area of the project. Availability of grant funds are extremely limited.

Eligibility requirements:

Funds are available in rural areas and towns with a population of 10,000 or less.

Funds are available to public entities, such as municipalities, counties, special-purpose districts, and Indian tribes. In addition, funds may be made available to corporations operated on a not-for-profit-basis.

Applicants must:

• Be unable to obtain needed funds from other sources at reasonable rates and terms;
• Have the legal capacity to borrow and repay loans, to pledge security for loans, and to operate and maintain the facilities for services;
• Be financially sound and able to mange the facility effectively; and
• Have a financially sound facility based on taxes, assessments, revenues, fees, or other satisfactory sources of income to pay all facility costs including operation and maintenance, and to retire the indebtedness and maintain a reserve.

Deadlines:

Applications are accepted at any time.