USDA Rural Development administers a water and

wastewater loan and grant program to improve the

quality of life and promote economic development in

rural America. This assistance is available through

Rural Development’s Rural Utilities programs.

Water and Waste Disposal 

Direct and Guaranteed Loans

Direct loans

Offered to develop water and wastewater systems,

including solid waste disposal and storm drainage, in

rural areas and in cities and towns with a population of

10,000 or less. Funds are available to public entities

such as municipalities, counties, special-purpose districts, and Indian tribes. In addition, funds may be

made available to corporations operated on a not-forprofit basis. 

Priority is given to public entities, in areas with less

than 5,500 people, to restore a deteriorating water supply, or to improve, enlarge, or modify a water facility or

an inadequate waste facility. Also, preference is given

to requests which involve the merging of small facilities

and those serving low-income communities.

Applicants must be unable to obtain funds from other

sources at reasonable rates and terms. The maximum

term for all loans is 40 years; however, no repayment

period will exceed state statutes or the useful life of the

facility. Interest rates are adjusted quarterly and may be

obtained from any Rural Development office.

Guaranteed loans

Available for the same purpose as direct loans.

Guaranteed loans are made and serviced by lenders

such as banks and savings and loan associations.

Normally, guarantees do not exceed 90 percent on any

loss of interest and principal on the loan. 

Water and Waste 

Disposal Grants

Reduce water and waste disposal costs to a reasonable level for users of the system. Grants are made, in

some instances, for up to 75 percent of eligible project

costs. Eligibility requirements are the same as for direct

loans. 

Technical Assistance 

and Training Grants

Made to private nonprofit organizations to provide technical assistance and/or training to associations located

in rural areas and to cities and towns with a population

of 10,000 or less. 

Grant assistance is available to qualified applicants to

identify and evaluate solutions to water and waste disposal problems, to improve the operation and maintenance of existing water and waste disposal facilities,

and to assist associations in preparing applications for

water and waste disposal facilities. 

Water and Environmental Programs

Rural Utilities Programs
Solid Waste 

Management Grants

Made to public and private nonprofit organizations to

provide technical assistance and/or training to associations located in rural areas and to cities and towns with

a population of 10,000 or less. 

Grant assistance must be used to reduce or eliminate

pollution of water resources, and/or to improve planning

and management of solid waste facilities.

Grants are made to enhance operator skills in operations and maintenance, identify threats to water

resources, and reduce the solid waste stream. 

Rural Water Circuit Rider 

Technical Assistance

Provides on-site technical assistance to help assure

cost-effective operation of rural water systems. USDA

Rural Development Circuit Rider can provide assistance with day-to-day operational, financial and management problems. 

The assistance is available at no charge and may be

requested by officials of rural water systems or by Rural

Development personnel. It complements supervisory

assistance provided by Rural Development personnel. 

Applications

Information about the Water and Environmental

Programs and advice on how to assemble information

to determine engineering feasibility, economic soundness, cost estimates, organization, financing and management matters, may be obtained from Rural

Development field offices. These offices are usually listed in local telephone directories under “U. S.

Department of Agriculture.” 

For More 

Information

See the Water and Waste Disposal Programs Web site

at http://www.usda.gov/rus/water/index.htm

Or write your local or State USDA Rural Development

office (see the U.S. Government listing of your phone

directory under U.S. Department of Agriculture), or the

National Office at: 

USDA Rural Development

Water and Environmental Programs 

STOP 1548 

Washington, D.C. 20250-1548 

Phone: (202) 690-2670 

FAX: (202) 720-0718 

PA 1806

December 2004

Supersedes PA 1611, Water and Waste Disposal

Programs, last revised July 1997.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities

on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited

bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print,

audiotape, etc.) should contact USDA's TARGET

Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write USDA,

Director, Office of Civil Rights, Room 326-W,

Whitten Building, 14th and Independence Avenue,

SW, Washington, DC 20250-9410 or call (202) 720-

5964 (voice and TDD). USDA is an equal opportunity provider and employer.