Water & Waste Disposal Loan & Grant Program

The Water & Waste Disposal Loan & Grant Program is a funding initiative administered by the United States Department of Agriculture (USDA) Rural Development agency. The purpose of this program is to support rural communities by financing projects that provide clean and reliable drinking water systems, sanitary sewage disposal, solid waste management, and storm water drainage infrastructure. The program is critical for small and financially distressed communities that lack the financial capacity to secure commercial credit on reasonable terms. The USDA’s Water & Waste Disposal Loan & Grant Program serves a broad but clearly defined applicant pool. Eligible applicants include most state and local government entities, federally recognized tribes, and private nonprofit organizations. These entities must serve rural areas and towns with populations of 10,000 or fewer residents. Eligible geographies also include tribal lands and colonias in rural regions. All applicants must demonstrate legal authority to construct, operate, and maintain the proposed facilities and services. The program offers two main types of financial support: long-term, low-interest loans and, if funds permit, grants that can be combined with loans to reduce overall user costs. The maximum loan term is up to 40 years and is based on the useful life of the financed infrastructure. Interest rates are fixed and are determined based on the community’s need and median household income. Funding may be used for a wide array of infrastructure needs such as the sourcing, treatment, storage, and distribution of drinking water; sewer system improvements; and the collection, treatment, and disposal of solid waste and storm water. Additional eligible uses include legal and engineering fees, land and water rights acquisition, permits, equipment, and construction-related interest. The purchase of existing facilities to maintain or improve services is also allowed. The program emphasizes the importance of public benefit; all federally financed facilities must serve a public purpose. Financial sustainability is a key requirement, and applicants are encouraged to form partnerships with other federal, state, local, nonprofit, or private financial assistance providers. The application process is open year-round, and submissions can be made electronically via RD Apply or through local USDA Rural Development offices. Resources such as customer help guides, forms, and certifications are available online to assist with the application process. While no strict deadlines are outlined, the program operates on a rolling basis, accepting applications throughout the year. There is no indication of recurring funding cycles since the program is continually available. All projects must adhere to federal regulations specified in 7 CFR Parts 1780 and 1782 and the Consolidated Farm and Rural Development Act (Section 306). Applicants are encouraged to consult their local USDA RD offices to confirm current details before applying. For assistance or more information, applicants are advised to contact the local USDA Rural Development representative in their service area. Participating nonprofits in various regions may also offer training and guidance to aid the application process. While no specific names or contact details are given in the program announcement, further inquiries should be directed to local RD offices.