632 
‘‘(f) PRIORITY.—In making grants and loans, and 
guaranteeing loans, for water, wastewater, and waste dis-
posal projects under this section, the Secretary shall give 
priority consideration to projects that serve rural commu-
nities that, as determined by the Secretary— 
‘‘(1) have a population of less than 5,500 per-
manent residents; 
‘‘(2) have a community water, wastewater, or 
waste disposal system that— 
‘‘(A) is experiencing— 
‘‘(i) an unanticipated reduction in the 
quality of water, the quantity of water, or 
the ability to deliver water; or 
‘‘(ii) some other deterioration in the 
supply of water to the community; 
‘‘(B) is not adequate to meet the needs of 
the community; and 
‘‘(C) requires immediate corrective action; 
‘‘(3) are experiencing outmigration; 
‘‘(4) have a high percentage of low-income resi-
dents; or 
‘‘(5) are isolated from other significant popu-
lation centers. 
‘‘(g) CURTAILMENT
OR LIMITATION
OF SERVICE 
PROHIBITED.—The service provided or made available 
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633 
through any such association shall not be curtailed or lim-
ited by inclusion of the area served by such association 
within the boundaries of any municipal corporation or 
other public body, or by the granting of any private fran-
chise for similar service within such area during the term 
of such loan; nor shall the happening of any such event 
be the basis of requiring such association to secure any 
franchise, license, or permit as a condition to continuing 
to serve the area served by the association at the time 
of the occurrence of such event. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary. 
‘‘SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARAN-
TEES, 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) essential community facilities, including— 
‘‘(A) necessary equipment; 
‘‘(B) recreational developments; and 
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‘‘(2) financial assistance and other assistance in 
the planning of projects for purposes described in 
this section. 
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for as-
sistance described in subsection (a) are— 
‘‘(1) associations (including corporations not 
operated for profit); 
‘‘(2) Indian tribes (including groups of individ-
uals described in paragraph (4) of section 815 of the 
Native American Programs Act of 1974 (42 U.S.C. 
2992c)); and 
‘‘(3) public and quasi-public agencies. 
‘‘(c) LOAN
AND
LOAN
GUARANTEE
REQUIRE-
MENTS.— 
‘‘(1) IN GENERAL.—In connection with loans 
made or guaranteed under this section, the Sec-
retary shall require the applicant— 
‘‘(A) to certify in writing, and the Sec-
retary shall determine, that the applicant is un-
able to obtain credit elsewhere to finance the 
actual needs of the applicant; and 
‘‘(B) to furnish an appropriate written fi-
nancial statement. 
‘‘(2) DEBT RESTRUCTURING AND LOAN SERV-
ICING FOR COMMUNITY FACILITY LOANS.—The Sec-
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