This program 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.

Grants may be combined with a loan if necessary to keep user cost reasonable. The loan term is up to a 40-year payback period, based on the useful life of the facilities financed with a fixed interest rate. The interest rate is based on the need for the project and the median household income of the area to be served.

• Long-term, low-interest loans
• If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable
• Up to a 40-year payback period, based on the useful life of the facilities financed
• Fixed interest rates, based on the need for the project and the median household income of the area to be served

• Municipal Government
• Tribal communities
• Non-profit organizations
• Municipal Government must have populations of 10,000 or less
• Tribal communities must be located in rural areas

• Drinking water sourcing, treatment, storage, and distribution
• Sewer collection, transmission, treatment, and disposal
• Solid waste collection, disposal, and closure
• Stormwater collection, transmission, and disposal

In some cases, funding may also be available for related activities such as:

• Legal and engineering fees
• Land acquisition, water and land rights, permits, and equipment
• Start-up operations and maintenance
• Interest incurred during construction
• Purchase of facilities to improve service or prevent loss of service

• Borrowers must have the legal authority to construct, operate, and maintain the proposed services or facilities
• All facilities receiving federal financing must be used for a public purpose
• Partnerships with other federal, state, local, private, and nonprofit entities that offer financial assistance are encouraged
• Projects must be financially sustainable

Call the Michigan State Director to be connected to a program specialist. Speak to a program specialist before attempting to fill out any forms or applications. Applications are accepted year-round and may be filed electronically using RD Apply.

Applications are also accepted through your local RD office.