Revolving Fund Program

The Revolving Fund Program is administered by the U.S. Department of Agriculture through the Rural Utilities Service and is designed to support the development and sustainability of water and wastewater infrastructure in rural communities. The program provides grant funding to qualified private, nonprofit organizations, which in turn establish revolving loan funds. These funds are used to provide financing to eligible entities for specific project-related costs. The overarching goal is to expand and improve water and wastewater systems by addressing financing gaps that often hinder early-stage or small-scale infrastructure projects. The purpose of the program is to enable nonprofit intermediaries to provide low-cost, short-term loans for pre-development expenses and small capital improvements related to water and wastewater systems. Eligible uses of funds include pre-development costs for proposed projects, replacement of equipment, minor system extensions, and other small-scale capital needs that fall outside regular operations and maintenance. Loan recipients may receive up to $200,000 or 75 percent of the total project cost, whichever is less, and must repay loans within a maximum term of 10 years. Interest rates are determined by the grant recipient but require approval from the Rural Utilities Service. Eligibility is limited to qualified private, nonprofit organizations that can demonstrate the capacity to manage a revolving loan fund and comply with federal requirements. Applicants must have no delinquent federal debt and must provide documentation of legal status, governance structure, financial stability, and operational capability. They must also demonstrate experience in loan servicing or provide a plan for managing the full lifecycle of loans. Additional eligibility details are provided through the official program website and regulatory references, including 7 CFR Part 1783. The application process requires submission through Grants.gov and includes completion of standard federal forms such as SF-424, SF-424A, and lobbying disclosures. Applicants must also prepare a comprehensive project proposal, work plan, and budget justification. Supporting documentation includes financial statements, audit reports, proof of nonprofit status, and organizational governance materials. Applications must be complete at the time of submission, as incomplete applications will not be considered. Applications are evaluated by a review panel composed of USDA staff, using a structured scoring system. Criteria include the applicant’s experience with loan programs, the level of matching or supplementary funding, the quality and feasibility of the work plan, clarity of goals and objectives, administrative efficiency, and the robustness of evaluation methods. Additional discretionary points may be awarded based on factors such as innovative outreach strategies and efficient use of resources. Awards are made based on ranking and funding availability. The application window for this funding opportunity opens on June 1, 2026, and closes on July 3, 2026, at 11:59 p.m. Eastern Time. Applicants must ensure timely submission through the Grants.gov system. The program is offered annually, subject to funding availability, with approximately $1,000,000 allocated for the 2026 cycle and an expected four awards. Questions and support are available through the program’s designated Grant Manager via email, and additional guidance is provided through official USDA resources and application materials.

Emphasize demonstrated experience in loan servicing, provide strong evidence of matching funds, and ensure the work plan is detailed and clearly aligned with program objectives.