Rural Decentralized Water Systems Grant Program in Arkansas

What does this program do?

This program provides grant funding to qualified nonprofits, including tribally owned nonprofits, to create a revolving loan fund or to award sub-grants to homeowners for supporting access to individually owned water and wastewater services in eligible rural areas.

Who may apply for these grants?

Nonprofits that have:

• Expertise and experience promoting the safe, productive use of individually-owned household water wells systems
• Legal authority to act as a lender
• Sufficient expertise and experience in lending activities
• Financial, technical and managerial capacity to comply with relevant federal and state laws and regulations

How may grant funds be used?

Grant funds may be used to help a nonprofit create a revolving loan fund for eligible individuals who own and occupy a home in an eligible rural area. The fund may be used to construct, refurbish, or service individually owned household water well and decentralized wastewater systems. Terms for the loans include one percent fixed interest rate, 20-year maximum term, and $15,000 maximum loan per household. The nonprofit may also award subgrants for the same purposes to eligible individuals meeting certain conditions.  

What is an eligible area?

• Rural areas and towns with populations of 50,000 or less - check eligible addresses
• Tribal lands in rural areas
• Colonias

Are matching funds required for the grant?

Yes. The nonprofit must contribute at least 10 percent.

• Matching funds may be from the non-profit applicant or a third party.
• Matching funds may not be in-kind.

Note:  Homeowners seeking a loan financing for an individually owned household water well or decentralized wastewater system should contact RD one of the current grantees listed at the Contact tab.

Are there any Environmental requirements associated with this grant?

RUS will notify a successful applicant by an award letter accompanied by a grant agreement and multi-tier action environmental compliance agreement.  The grant agreement will contain the terms and conditions for the grant; the multi-tier action environmental compliance agreement will detail the Recipient’s responsibilities in meeting the Agency’s Environmental Policies and Procedures, 7 CFR part 1970, in particular §1970.55 which applies to multi-tier actions or relending actions.  The multi-tier action environmental compliance agreement acknowledges that further “tiered” environmental review may be required and coordinated by the Recipient prior to approving Subrecipient applications for re-lending purposes.  The applicant must execute and return the agreements, accompanied by any additional items required by the award letter or grant agreement.

How do we get started?

• Electronic applications are accepted through Grants.gov.

Who can answer questions?

• Grant Manager at Water-RD@usda.gov.
• Staff in your local RD office.

What governs this program?

• Code of Federal Regulations 7 CFR 1776
• Section 306E of the Consolidated Farm and Rural Development Act

Why does USDA Rural Development do this?

This program helps communities improve access to safe, reliable drinking water for households and improve the sanitary conditions caused by inadequate decentralized wastewater systems in rural areas.