Revolving Fund Program

The Revolving Fund Program is designed to help qualified non-profits establish a revolving loan fund to provide financing for water and wastewater projects in rural areas. The program aims to support the development of water and wastewater systems in rural communities by providing short-term loans to eligible entities. The loans can be used to cover predevelopment costs or short-term, small capital projects. To be eligible, applicants must be private, non-profit organizations with experience in managing and servicing revolving loan funds. The application process involves submitting a complete application package, including a project proposal, work plan, budget, and supporting documentation. The application will be evaluated based on criteria such as the applicant's expertise and experience, the completeness and feasibility of the project proposal, and the availability of funds from other sources. • The program is authorized under Section 306(a)(2)(B) of the Consolidated Farm and Rural Development Act. • The program is governed by 7 CFR Part 1783. • The program provides funding for up to 75% of the total project cost, with a maximum loan amount of $200,000. • The loan repayment period is up to 10 years. • The interest rate is determined by the grant recipient and must be approved by USDA Rural Development Rural Utilities Service. • The program requires a minimum of 20% matching funds from non-RFP sources. • The program prioritizes projects that serve communities with high social vulnerability and economic distress.