Revolving Fund Program

The Revolving Funds for Financing Water and Wastewater Projects Program (RFP) is administered by the Rural Utilities Service (RUS), a division within USDA Rural Development. This federal program supports the establishment and operation of revolving loan funds managed by qualified nonprofit organizations to provide crucial financing to improve and extend water and wastewater disposal systems in rural areas. These revolving funds allow for short-term loan assistance to rural communities and organizations in need of capital for predevelopment or small infrastructure projects related to water and wastewater systems. The primary purpose of the RFP Program is to enable eligible entities to finance predevelopment costs, such as planning and design, and to undertake small capital improvements that are not part of ongoing operations or maintenance. These improvements must align with modern sustainability standards by integrating energy efficiency, resiliency, or water reuse technologies. Loans from the revolving funds cannot exceed $200,000 or 75 percent of the total project cost, and the loan term must be no longer than 10 years. Each borrower may not hold an outstanding loan balance of more than $200,000 at any given time. Grant recipients are responsible for establishing the loan terms, including interest rates, which are subject to RUS approval. Approximately $1,000,000 in funding is available for this grant program in fiscal year 2025. The program does not set a minimum or maximum award amount per grantee. The performance period for awarded projects will run from October 1, 2025, to September 30, 2026. Prior recipients may apply again, but past grants are not subject to renewal and must be submitted as new applications. Eligible applicants must be nonprofit organizations that meet the criteria outlined in 7 CFR 1783.5. They must also provide a 20 percent matching contribution as required by 7 CFR 1783.9(b)(3). Furthermore, non-tribal applicants intending to serve tribal lands must obtain and submit a tribal resolution of support. All applications must adhere to applicable USDA and federal program guidelines, including those in 2 CFR parts 200 and 25. Importantly, grant funds cannot be used for administrative expenses. Applicants must submit a complete application through Grants.gov by August 7, 2025, at 11:59 p.m. Eastern Time. Late or incomplete applications will not be considered. All applicants must have an active registration with SAM.gov and a valid Unique Entity Identifier (UEI) to be eligible. The RFP Application Guide, required forms, and further guidance are available on the USDA Rural Development website. The application must include a work plan, budget, and required attachments as outlined in the FY 2025 RFP Application Guide. Applications will be evaluated competitively based on the scoring criteria detailed in 7 CFR 1783.9, with additional points available if administrative priorities are clearly documented. RUS review teams will rank applications based on completeness, eligibility, and alignment with program goals. Notification of awards is expected by September 30, 2025. Selected applicants will be issued grant agreements and must comply with all associated reporting and performance monitoring requirements throughout the funding period. For questions related to this opportunity, applicants may contact Christina Cerio, Community Programs Specialist, Water and Environmental Programs, RUS, USDA, by email at Water-RD@usda.gov or by phone at (315) 403-3112.

Follow the Application Guide; submit early; ensure UEI, TIN, and SAM registration are active.