Together, America Prospers 

Water & Waste Disposal Loan & Grant Program
 

What does this 

program do? 

This program provides funding 

for clean and reliable drinking 

water systems, sanitary sewage 

disposal, sanitary solid waste 

disposal, and storm water 

drainage to households and 

businesses in eligible rural areas. 

Who may apply? 

This program assists qualified 

applicants who are not otherwise 

able to obtain commercial credit 

on reasonable terms. Eligible 

applicants include: 

• Most state and local 

governmental entities 

• Private nonprofits 

• Federally recognized Tribes 

What is an eligible area? 

Areas that may be served include: 

• Rural areas and towns with 

populations of 10,000 or 

less – check eligible addresses 

• Tribal lands in rural areas 

• Colonias 

What kinds of funding are available? 

Long-term, low-interest loans. If 

funds are available, a grant may be 

combined with a loan if necessary to 

keep user costs reasonable 

How may the funds be used? 

Funds may be used to finance 

the acquisition, construction, or 

improvement of: 

• Drinking water sourcing, treatment, 

storage, and distribution 

• Sewer collection, transmission, 

treatment, and disposal 

• Solid waste collection, disposal, 

and closure 

• Storm water collection, transmission, 

and disposal 

In some cases, funding may also be 

available for related activities such as: 

• Legal and engineering fees 

• Land acquisition, water and land 

rights, permits, and equipment 

• Start-up operations and maintenance 

• Interest incurred during construction 

• Purchase of facilities to improve 

service or prevent loss of service 

• Other costs determined to be 

necessary for completion of the project 

• See 7 CFR Part 1780.7 and 1780.9 

for a complete list 

What is the loan term and rate? 

The loan term is up to a 40-year 

payback period, based on the useful 

life of the facilities financed with a fixed 

interest rate. The interest rate is based 

on the need for the project and the 

median household income of the area 

to be served. Contact us for details and 

current interest rates applicable for 

your project. 

Are there additional requirements? 

• Borrowers must have the legal 

authority to construct, operate, and 

maintain the proposed services 

or facilities. 

• All facilities receiving federal 

financing must be used for a 

public purpose. 

• Partnerships with other federal, 

state, local, private, and nonprofit 

entities that offer financial assistance 

are encouraged. 

• Projects must be financially sustainable. 
Water & Waste Disposal Loan 

& Grant Program 

How do we get started? 

Applications are accepted year round 

and may be filed electronically using 

RD Apply. The RD Apply Customer 

Help Guide is provided to help you 

get started and work through the 

application process. Applications 

are also accepted through your local 

RD office. Program resources are 

available online (i.e., forms, guidance, 

certifications, etc.). 

Who can answer questions? 

Contact the local representative 

who serves your area. Participating 

nonprofits in your area may also offer 

assistance and training. 

What governs this program? 

• Basic Program – 7 CFR, Part 1780 

• Loan Servicing – 7 CFR, Part 1782 

• Section 306 of the Consolidated 

Farm and Rural Development Act 

Why does USDA Rural Development 

do this? 

This program helps very small, 

financially distressed rural communities 

extend and improve water and waste 

treatment facilities that serve local 

households and businesses. Good 

practices can save tax dollars, improve 

the natural environment, and help 

manufacturers and businesses to locate 

or expand operations. 

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender. 

Last Updated December 2019