USDA Water Grants and Loans Available to Water and Wastewater Utilities
On this page:
- Emergency Community Water Assistance Grants
- Water and Waste Disposal Loan and Grant Program
- Special Evaluation Assistance for Rural Communities and Households
- Revolving Funds for Financing Water and Wastewater Projects
Emergency Community Water Assistance Grants (ECWAG)
Description: Provides grant funds to rural communities at two levels:
- A maximum grant of $1,000,000 to communities with a significant decline in quantity or quality of drinking water due to an emergency
- A maximum grant of $150,000 to make emergency repairs and replacement of facilities on existing systems
Grants cover projects to obtain or maintain adequate quantities of water that meet the standards set by the Safe Drinking Water Act. Emergencies include drought, earthquake, flood, tornado, hurricane, disease outbreak or chemical spill, leakage or seepage.
Eligibility: Public entities and nonprofit corporations in rural areas may be eligible. Public entities include tribes on federal and state reservations and other federally recognized tribal groups. They also include cities, towns or unincorporated areas with a population of less than 10,000 people. These cities must also have a median household income of no more than 100 percent of a state's non-metropolitan median household income.
Type and Cost Share: 100 percent grant for project costs.
Application: Applicants must show a major decline in quantity or quality of water within two years of the date of the application. Apply online at RD Apply. Utilities should also contact their local USDA Rural Development office for assistance. Applications are accepted year-round.
Website: See EWCAG
Water and Waste Disposal Loan and Grant Program
Description: Provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas. Funds may be used to finance the acquisition, construction or improvement of:
- Drinking water sourcing, treatment, storage and distribution
- Sewer collection, transmission, treatment and disposal
- Solid waste collection, disposal and closure
- Storm water collection, transmission and disposal
An advantage of this program is that it includes predevelopment planning funds; grant funding may be used to pay part of the costs of developing a complete application.
Eligibility: Public entities and nonprofit corporations in rural areas may be eligible. Public entities include tribes on federal and state reservations and other federally recognized tribal groups. They also include cities, towns or unincorporated areas with a population of less than 10,000 people. Serves populations of 10,000 or less except for the Loan Guarantee Program, which has an eligible population up to 50,000 people.
Type and Cost Share: Long-term, low-interest loans (up to 40-year payback period). If funds are available, a grant may be combined with a loan if necessary, to keep user costs reasonable.
Application: Apply online year-round. Utilities should also contact their local USDA Rural Development office for assistance.
Website: See Water and Waste Disposal Loan and Grant Program
Special Evaluation Assistance for Rural Communities and Households
Description: Provides funding to very small, financially distressed rural communities for predevelopment feasibility studies, design, and technical assistance on proposed water and waste disposal projects. Predevelopment planning funding must be related to a proposed project, including, but not limited to, the construction, enlargement, extension, or improvement of rural water, sanitary sewage, solid waste disposal, and storm wastewater disposal facilities.
Eligibility: States, tribes, local government entities, and 501(c)(3) nonprofit organizations are eligible to apply, as long as the applicant serves a rural area or town with a population of 2,500 or less. The area must also have a median household income below the poverty line or less than 80% of the state’s median household income.
Type and Cost Share: Determined on a case-by-case basis.
Application: Proposals are accepted year-round through your state Rural Development Office.
Website: See USDA Rural Development
Revolving Funds for Financing Water and Wastewater Projects
Description: Provides funding to qualified nonprofits to create revolving loan funds that can provide financing to extend and improve water and waste disposal systems in rural areas.
Funding can be used for predevelopment costs for water and wastewater treatment projects and short-term small capital improvement projects.
An advantage of this program includes money available for developing a revolving fund; grant funding may be used to pay part of the costs of developing a complete application.
Eligibility: Open to 501 (c)(3) nonprofits that have legal authority to operate a revolving loan fund as well the financial, technical and managerial capacity to comply with relevant state/federal laws and regulations, as long as the applicant serves a rural area or town with a population of 10,000 or less.
Type and Cost Share: A 10-year maximum loan of $200,000. A 20% match is required (not to include in-kind services).
Application: Proposals are accepted year-round through your state Rural Development Office.
Website: See USDA Rural Development