USDA Revolving Funds for Financing Water and Wastewater Projects (Revolving Fund Program)

USDA grants that capitalize nonprofit-run revolving loan funds, giving small rural systems a source of short-term financing to extend and improve water and waste disposal infrastructure.

The Revolving Fund Program awards grants to qualified private nonprofit organizations so they can establish and operate revolving loan funds. Those funds then make small, short-term loans to rural communities and water systems for pre-development costs and small capital improvements to water and waste disposal systems, filling the gap between a community identifying a need and larger USDA or state financing closing. Because the nonprofit administers the loans locally, turnaround is generally faster and underwriting more flexible than federal direct programs. Loans are typically capped at a modest share of total project cost and must be repaid to the revolving fund, which then re-lends the money. For the H2O region, this is most relevant to larger member nonprofits and regional technical assistance providers who could operate such a fund for southwestern Pennsylvania, eastern Ohio, and northern West Virginia, and to small systems looking for a lender familiar with rural water projects. Awards are made through an annual competitive notice of funding opportunity. NOTE: the current cycle deadline and award ceiling were not confirmed during this scan and should be verified on the program page before this entry is published.