What does this program do?
It assists low-income communities with initial planning and development of an application for USDA Rural Development Water and Waste Disposal direct loan/grant and loan guarantee programs.
Who may apply?
- Most State and local governmental entities
- Nonprofit organizations
- Federally Recognized Tribes i
What is an eligible area?
- Rural areas and towns with a population of 10,000 or less. Check eligible addresses
- Federally Recognized Tribal Lands i
- Colonias i
- And the area must also have a median household income below the poverty line or less than 80% of the statewide non-metropolitan median household income
How may the funds be used?
- Grants may be used to pay part of the costs of developing a complete application for USDA Rural Development Water & Waste Disposal direct loan/grant and loan guarantee programs
Are there terms for grants?
- May not be used to pay for work already completed
- The amount of this grant will be subtracted from the total grant eligibility if a USDA grant is awarded for part of the water or waste disposal project
- These grants do not have to be paid back if the application for the USDA Direct loan or loan/grant combination is not successful
- Grants are based on demonstrated need and subject to the availability of funds
- Partnerships with other federal, state and local entities are encouraged and grants are awarded only when the applicant cannot afford to borrow the needed funds
Is there a maximum grant amount?
Maximum of $30,000 or 75% of the predevelopment planning costs
Are matching funds required?
Yes, at least 25% of the project cost must come from the applicant or third party sources. In-kind contributions do not count toward this minimum
How do we get started?
- Applications for this program are accepted through your local RD office year round
- Program Resources are available online (includes forms needed, guidance, certifications etc
Who can answer questions?
- Help is always available through your local office
- Participating non-profit associations also offer assistance and training
What governs this program?
- Code of Federal Regulation, 7 CFR 1780
- This program is authorized by the Agricultural Act of 2014