National Rural Water Association – Rural Water Loan Fund

The National Rural Water Association established the Rural Water Loan Fund (RWLF) through a grant from the USDA/RUS, with repaid funds used to replenish the fund to facilitate new loans. The NRWA RWLF is a funding mechanism specifically designed to meet the unique needs of small water & wastewater utilities.

Eligible Systems       

• Water or Wastewater Systems serving a population of 10,000 or less

• Loan amounts up to $200,000 or 75% of the total project cost, whichever is less

• Emergency loans are 90-day no interest

• Absolutely NO administrative or processing fees are applied by NRWA

• Reasonable interest rates

• Straightforward and quick application and approval process – usually within 1 week of application submission

• Typical Projects – pre-engineering planning, disaster response/recovery, equipment replacement, and small capital projects                       

Rural Water Loan Fund – A Quick and Easy Resource for Urgent Funding

The Rural Water Loan Fund (RWLF) is a funding program specifically designed to meet the unique needs of small water and wastewater utilities. The RWLF provides low-cost loans for short-term repair costs, small capital projects, or pre-development costs associated with larger projects. The RWLF was established through a grant from the USDA/RUS, and repaid funds are used to replenish the fund and make new loans.

Eligible Projects

• Pre-development (planning) costs for infrastructure projects

• Replacement equipment, system upgrades, maintenance and small capital projects

• Energy efficiency projects to lower costs and improve system sustainability

• Disaster recovery or other emergency loans are available

Key Points

• Reasonable, below market interest rate (currently 3%) and a maximum repayment period of 10 years

• Straightforward application process and quick turnaround time (just a few days if documents are in order)

• Loan amounts may not exceed $200,000 or 75% of the total project cost, whichever is less

• Emergency loans are 90-day no interest, with immediate turn around on applications

• NRWA charges no administrative or processing fees

• Systems must be public entities (municipalities, counties, special purpose districts, Native American Tribes, nonprofit corporations and cooperatives) serving up to 10,000 persons, or in rural areas with no population limits

RWLF Success: Darlington, Indiana

The community of Darlington, Ind. used the Rural Water Loan Fund to start repairs on their aging wastewater plant. The 30-year-old plant had been badly neglected and equipment was beginning to fail. "So many things are in dire need of repair,” explained Judy Anderson, Darlington Clerk-Treasurer. "We weren’t aware of many of the problems.”

When it became clear major repairs and upgrades were needed, the town started seeking grants and loans to begin repairs. Darlington applied for a $500,000 State Development Block Grant three times and requested a similar-sized loan from their state loan fund. "We’ve tried to get a grant for I don’t know how long, "Anderson said. "We needed to get going.”

The town learned of the RWLF from a utility superintendent assisting their system. Darlington leaders saw the program as a chance to make some of the needed repairs while they waited for larger grants. "It was very simple, very quick "Anderson said. "They were very easy to work with.”

The town received a $100,000 loan and immediately began repairs to the wastewater plant. "There was an enormous need to get something done now,” Anderson said. "It’s hard to put into words all the things needed. It’s nice that there are things like this program for small towns.”

How Can I Apply?

Information can be emailed, if available electronically, to the email address below. Applications and supporting documents can also be sent by mail. Applicants may also contact any State Rural Water Association for assistance in preparing and submitting the required documents.

Mailing Address:

Rural Water Loan Fund

2915 S. 13th Street

Duncan, OK 73533

Email Address: nrwarwlf@nrwa.org

To Download an Application: rlfapp_2.pdf

To Download an Informational Flyer: RWLF FLYER final

This is such a great program, and very timely to bring it to the forefront with all the discussion surrounding costs to identify and/or replace lead & galvanized service lines. NYRWA is proud to have several member systems who have taken advantage of this funding opportunity and look forward to trying to meet the needs of future requests.

This is just one more way YOUR NYRWA Staff try to assist you in maintaining…Quality on Tap!