Water and Waste Disposal Loan Guarantees
Contact local private lenders and ask if they participate in the program or contact the USDA State Office to request information on participating lenders.
Water and Waste Disposal Loan Guarantees help private lenders provide affordable financing to qualified borrowers to improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.
Borrowed funds may be used to construct or improve facilities for:
- Drinking water
- Sanitary sewers
- Solid waste disposal
- Storm water disposal facilities
Depending on the circumstances, some funds may also be used for:
- Legal and engineering fees
- Land acquisition and equipment
- Start-up operations and maintenance
- Capitalized interest
- Other costs determined to be necessary for completion of the project
Loans guaranteed through this program are serviced through the private lender that makes the loan, just as they would be without a guarantee.
Private lenders may apply for a guarantee on loans they make to eligible borrowers who are otherwise unable to obtain commercial credit on reasonable terms.
Eligible borrowers include:
- Most state and local governmental entities
- Nonprofit organizations
- Federally recognized tribes
Eligible areas include:
- Rural areas and towns with populations of 10,000 or less (check eligible addresses)
- Tribal lands in rural areas
The maximum guarantee is typically 90% of the loan amount. Rates and terms are to be negotiated between the lender and the borrower, subject to USDA approval.
Links to additional guidance are available on the program website.
Lenders should contact a representative in the USDA State Office for details on how to become an approved lender. Borrowers should ask private lenders if they participate in USDA loan guarantee programs.
The Water and Waste Disposal Loan program is part of the Strategic Economic and Community Development Program, which allows USDA to give application priority points for projects that support the implementation of regional economic development plans.
For complete information about funding programs, including your application status, please contact funders directly. Summaries are provided for your convenience only. RHIhub does not take part in application processes or monitor application status.