Opportunity for Funding through USDA Rural Development
Water and Environmental Programs
Attention Community Leaders! Rural Development’s Water and Environmental Program (WEP) may be a valuable financial resource for your community. Consider this program as you assess the current and future needs of your community residents to access clean, safe, drinking water, as well as sanitary systems and solid waste disposal systems. This program offers low interest loans and grants to eligible communities and will have additional funding in 2008! Direct loans are offered to develop water and wastewater systems, including solid waste disposal and storm drainage. Program funds can be used for construction of new systems, as well as renovation and improvements to existing systems. Eligible applicants must: Be a public body, an Indian Tribe, or a non-profit organization Be locally owned and operated Be unable to obtain commercial lending elsewhere Be located in a rural community of not more than 10,000 people or be located in a township Have legal authority to borrow and repay loans to operate the facility Loan interest rates are based on median household income of the service area. Fixed interest rates are currently at a record low of 4⅛ percent with loan terms up to 40 years. No down payments are required, and there are no pre-payment penalties. Grants are available in conjunction with these loans to reduce user costs to a reasonable level. Grant funds are limited and are provided on a competitive process.
Community Facility Programs
Rural Development also offers the Community Facility (CF) Program. The CF program can provide financing for the construction, purchase, and/or renovation of various essential community facilities through direct loans, loan guarantees, and grants. In 2008, this program will have higher levels of funding targeted specifically to Critical Access Hospitals. Other examples of essential community facilities include (partial list): Clinics Museums Private Schools Assisted Living Libraries Fairgrounds Facilities Street Improvements Courthouses Fire/Rescue Jails Municipal Docks Vehicles Airports Food Centers Protective Fire/Police Stations Day Care Centers Equipment Town Halls As with the Water and Environmental Program, applicants must meet certain criteria to qualify for financing. Applicants must: Be a public body, an Indian Tribe, or a non-profit organization Be locally owned and operated Be unable to obtain commercial lending elsewhere Be located in a rural community of not more than 20,000 people or be located in a township Have legal authority to borrow and repay loans to operate the facility Demonstrate substantial community support
Direct loan interest rates are based on median household income of the service area. Fixed interest rates are also currently at a record low of 4⅛ percent with loan terms up to 40 years. No down payments are required, and there are no pre-payment penalties. Grant funds are dependent on both the community population and the median household income. Grant funds are limited and are provided in a competitive process. With loan guarantees, borrowers approach their local bank, credit union, mortgage company or savings and loan association for funding; Rural Development then guarantees* a percent of the loan, usually 80-90% of the loan amount. Interest rates are negotiated between the lender and the applicant. The program allows borrowers to build strong relationships with local lenders to establish a successful loan history. * cannot guarantee tax exempt credit Rural Development partners closely with non-profit agencies, such as Wisconsin Rural Water Association, in addition to state, local, and Tribal governments to provide necessary financial and technical assistance to communities. Applications for both programs are accepted on an ongoing basis. For more information, refer to the enclosed map and contact the Area Office that serves your county.
Rural Development is an Equal Opportunity Lender, Provider, and Employer. Complaints of discrimination should be sent to USDA, Director, Office of Civil Rights, Washington, DC 202509410.