Water and Waste Disposal Systems for Rural Communities

Provide loan and grant funds for water and waste projects serving the most financially needy communities. Financial assistance should result in reasonable user costs for rural residents, rural businesses, and other rural users.

For Water & Waste Disposal loans and grants: Municipalities, counties, 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. The applicant must: (1) be unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms; and (2) have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service, and for obtaining, giving security for, and repaying the proposed loan. Assistance is authorized for eligible applicants in rural areas of the United States, Puerto Rico, the Virgin Islands, Guam, Commonwealth of Northern Mariana Islands, and American Samoa. For Water & Waste Disposal loan guarantees: Federally regulated lending institution with the legal authority, financial strength and sufficient experience to operate a successful lending program. Other non-regulated lending institutions may also be approved by the Agency.

Users of the applicant systems, which are previously described as public bodies, private nonprofit corporations, Indian tribes, and individuals.

Evidence of legal and organizational capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested.

Funds may be used for the installation, repair, improvement, or expansion of a rural water facility including distribution lines, well pumping facilities and costs related thereto, and the installation, repair, improvement, or expansion of a rural waste disposal facility including the collection, and treatment of sanitary, storm, and solid wastes.

An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

USDA Rural Development (RD) offices administer the program on the local level. Applications include the criteria specified within 7 CFR 1777. This includes, but is not limited to, the requirement of applicants to file an application Form SF-424, Application for Federal Assistance, with the appropriate Rural Development (RD) Office.

In selecting applications for funding, the agency cooperates with appropriate State agencies. RUS assistance for water and waste disposal projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as, but not limited to: Population; low income unemployment; and health and sanitary problems. RUS financed facilities will be consistent with any development plans of the State, multi-jurisdictional area, county, or municipality in which the proposed project is located.

Applications will be reviewed and scored for funding priority by the RD State Office. After the application has been reviewed at the local level, it is forwarded to the RD State Director for review and processing instructions. Following completion of application processing requirements and loan/grant approval, funds are made available to the applicant. As needed, the RD State Director may request supplemental funding from the RUS National Office.

Dependent upon funding and whether the application is considered complete. A determination on a complete application will be made within 15 federal working days. If complete, an eligibility and funding determination will be issued within 45 working days.

An application determined ineligible may request a review of this decision with the National Appeals Division of USDA in accordance with USDA regulations at 7 CFR 11.