This program helps qualified nonprofits create revolving loan funds that can provide financing to extend and improve water and waste disposal systems in rural areas.

Nonprofits must have:

• Legal authority to operate a revolving loan fund

• Financial, technical, and managerial capacity to comply with relevant state/federal laws and regulations

• Maximum loan per borrower is $200,000
• Maximum term is 10 years
• Interest rate determined by utility district borrower and nonprofit that manages the revolving loan fund
• 20% match required
• Matching funds may be from the applicant or a third party
• Matching funds may not be in-kind

• Tribal Communities
• Non-profit Organizations
• Municipal Government (must have populations of 10,000 or less)

Applicants cannot apply directly to USDA, and they need to apply to non-profit recipient of funds.

• Pre-development costs of water and wastewater treatment projects
• Short-term small capital improvement projects that are not part of the regular operations and maintenance

Qualified non-profits who are interested in applying for the funds directly from the USDA should contact the Michigan State Director to be connected to a program specialist.

Eligible applicants will need to submit application to the qualified non-profits to secure funding.