610 
‘‘Subtitle B—Rural Development 
‘‘CHAPTER 1—RURAL COMMUNITY 
PROGRAMS 
‘‘SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN 
GUARANTEES, AND GRANTS. 
‘‘(a) IN GENERAL.—The Secretary may make grants 
and loans and issue loan guarantees (including a guar-
antee of a loan financed by the net proceeds of a bond 
described in section 142(a) of the Internal Revenue Code 
of 1986) to eligible entities described in subsection (b) for 
projects in rural areas that primarily serve rural residents 
to provide for— 
‘‘(1) the development, storage, treatment, puri-
fication, or distribution of water or the collection, 
treatment, or disposal of waste; and 
‘‘(2) financial assistance and other aid in the 
planning of projects for purposes described in para-
graph (1). 
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for as-
sistance described in subsection (a) are— 
‘‘(1) associations (including corporations not 
operated for profit); 
‘‘(2) Indian tribes; 
‘‘(3) public and quasi-public agencies; and 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00610
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
611 
‘‘(4) in the case of a project to attach an indi-
vidual property in a rural area to a water system to 
alleviate a health risk, an individual. 
‘‘(c) LOAN
AND
LOAN
GUARANTEE
REQUIRE-
MENTS.—In connection with loans made or guaranteed 
under this section, the Secretary shall require the appli-
cant— 
‘‘(1) to certify in writing, and the Secretary 
shall determine, that the applicant is unable to ob-
tain credit elsewhere to finance the actual needs of 
the applicant at reasonable rates and terms, taking 
into consideration prevailing private and cooperative 
rates and terms in the community in or near which 
the applicant resides for loans for similar purposes 
and periods of time; and 
‘‘(2) to furnish an appropriate written financial 
statement. 
‘‘(d) GRANT AMOUNTS.— 
‘‘(1) MAXIMUM.—Except as otherwise provided 
in this subsection, the amount of any grant made 
under this section shall not exceed 75 percent of the 
development cost of the project for which the grant 
is provided. 
‘‘(2) GRANT RATE.—The Secretary shall estab-
lish the grant rate for each project in conformity 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00611
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
612 
with regulations issued by the Secretary that shall 
provide for a graduated scale of grant rates that es-
tablish higher rates for projects in communities that 
have— 
‘‘(A) lower community population; 
‘‘(B) higher rates of outmigration; and 
‘‘(C) lower income levels. 
‘‘(3) LOCAL
SHARE
REQUIREMENTS.—Grants 
made under this section may be used to pay the 
local share requirements of another Federal grant- 
in-aid program to the extent permitted under the 
law providing for the grant-in-aid program. 
‘‘(e) SPECIAL GRANTS.— 
‘‘(1) 
REVOLVING
FUNDS
FOR
FINANCING 
WATER AND WASTEWATER PROJECTS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
make grants to qualified, nonprofit entities in 
rural areas to capitalize revolving funds for the 
purpose of providing financing to eligible enti-
ties for— 
‘‘(i) predevelopment costs associated 
with 
proposed 
water 
and 
wastewater 
projects or with existing water and waste-
water systems; and 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00612
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
613 
‘‘(ii) short-term costs incurred for re-
placement equipment, small-scale extension 
services, or other small capital projects 
that are not part of the regular operations 
and maintenance activities of existing 
water and wastewater systems. 
‘‘(B) MAXIMUM AMOUNT OF FINANCING.— 
The amount of financing made to an eligible 
entity under this paragraph shall not exceed— 
‘‘(i) $100,000 for costs described in 
subparagraph (A)(i); and 
‘‘(ii) $100,000 for costs described in 
subparagraph (A)(ii). 
‘‘(C) TERM.—The term of financing pro-
vided to an eligible entity under this paragraph 
shall not exceed 10 years. 
‘‘(D) ADMINISTRATION.—The Secretary 
shall limit the amount of grant funds that may 
be used by a grant recipient for administrative 
costs incurred under this paragraph. 
‘‘(E) ANNUAL REPORT.—A nonprofit enti-
ty receiving a grant under this paragraph shall 
submit to the Secretary an annual report that 
describes the number and size of communities 
served and the type of financing provided. 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00613
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS