Program 101

Program Fact Sheet

Are applications currently being accepted: YES
 

What does this program do?

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.

Who may apply?

This program assists qualified applicants who are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:

What is an eligible area?

Areas that may be served include:

What kinds of funding are available?

  • Long-term, low-interest loans
  • If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable.

How may the funds be used?

Funds may be used to finance the acquisition, construction or improvement of:

  • Drinking water sourcing, treatment, storage and distribution
  • Sewer collection, transmission, treatment and disposal
  • Solid waste collection, disposal and closure
  • Storm water 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
  • Other costs determined to be necessary for completion of the project
  • See 7 CFR Part 1780.7 and 1780.9 for a complete list

What is the loan term and rate?

  • Up to 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

Contact us for details and current interest rates applicable for your project

Are there additional requirements?

  • 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.

How do we get started?

Button image for RD Apply

  • Applications are accepted year round and may be filed electronically using RD Apply. The RD Apply Customer Help Guide is provided to help you get started and work through the application process
  • Applications are also accepted through your local RD office.
  • Program resources are available online (i.e., forms, guidance, certifications, etc.).

Who can answer questions?

  • Contact the local representative who serves your area
  • Participating nonprofits in your area may also offer assistance and training

What governs this program?

Why does USDA Rural Development do this?

This program helps very small, financially distressed rural communities extend and improve water and waste treatment facilities that serve local households and businesses. Good practices can save tax dollars, improve the natural environment, and help manufacturers and businesses to locate or expand operations.

NOTE: Program details may change over time. Before you begin an application, please confirm you have the most current information by contacting a program specialist in your local RD office for assistance or consult the program instructions listed in the section above titled "What Governs this Program?"

Forms & Resources

Use this link to obtain the RUS Bulletins listed below.
RUS Bulletin 1780-2 PER
RUS Bulletin 1780-7 Legal Services Agreement
RUS Bulletin 1780-9 Water Users Agreement
RUS Bulletin 1780-12 Water and Waste System Grant Agreement
RUS Bulletin 1780-20 Bylaws
RUS Bulletin 1780-22 Water and Waste Eligibility Certification
RUS Bulletin 1780-26 Guidance for the use of EJCDC Funding Agency Edition Documents on Water and Waste Projects with RUS Financial Assistance
RUS Bulletin 1780-27 Loan Resolution (Public Bodies)
RUS Bulletin 1780-28 Loan Resolution Security Agreement
RUS Bulletin 1780-30 Water Programs Audit Guide and Compliance Supplement
RUS Bulletin 1780-31 OMB Circular A-133 Audits

Use this link to obtain the National RD Forms listed below.
AD 3030 Representations Regarding Felony Conviction and Tax Delinquent Status for Corporate Applicants
AD 3031 Assurance Regarding Felony Conviction or Tax Delinquent Status for Corporate Applicants
SF 424 Application for Federal Assistance
SF 424C Exhibit C for SF 424
SF 424D Exhibit D for SF 424
SF 3881 ACH Vendor/Miscellaneous Payment Enrollment Form
400-3 Notice of Contractors and Applicants
400-8 Compliance Review
440-22 Promissory Note
440-24 Position Fidelity Schedule Bond Declaration
440-34 Option to Purchase Real Property
442-2 Statement of Budget, Income and Equity
442-3 Balance Sheet
442-7 Operating Budget
442-20 Right of Way Easement
442-21 Right of Way Certificate
442-22 Opinion of Counsel Relative to Right of Way
1927-5 Affidavit Regarding Work of Improvement
1942-8 Resolution of Members or Stockholders
1942-46 Letter of Intent to Meet Conditions
3550-28 Authorization Agreement for Preauthorization Payments
3575-1 Application for Loan and Guarantee
Survey on Ensuring Equal Opportunity for Applicants

Illinois Instructions 1780 Guides.
Guide 0 Applicants Application Checklist
Guide 1 Handbook for Developing a Water and/or Waste Project and Obtaining USDA Rural Development Funding Assistance
Guide 2 Application Index (Public Body)
Guide 2A Application Index (Not-for-Profit Corporation)
Guide 3 Loan Docket Content (Public Body)
Guide 3A Loan Docket Content (Not-for-Profit Corporation)
Guide 5 Rules, Rates and Regulations for the...
Guide 6 Plan for Operation and maintenance of Water or Waste System
Guide 13 Water Purchase Contract
Guide 14 Sewage Treatment Contract
Guide 15 Notice of Intent to File Application
Guide 16 Notice of Public Meeting

Illinois Forms
RD IL 442-20 Right of Way Easement
RD IL 1780-1 User Contract
RD IL 1780-1A Service Declination Statement
RD IL 1780-2 Attorney's Opinion Relative to Organization, Authority and Continuous Existence
RD IL 1780-3 Certification of Number of Users
RD IL 1780-6 Progress Report for Water and Waste Projects
RD IL 1780-7 Report on Type of Users and Record of Water Usage
RD IL 1780-19 Agreement for Engineering Services
RD IL 1927-4(DOC)(PDF) Real Estate Mortgage for Illinois, Automated
RD IL 1927-9 Preliminary Title Opinion
RD IL 1927-10 Final Title Opinion

Other
Combined Certification, Certification of Compliance with Federal Requirements/Laws
Positive Program to Encourage Connections

CP Illinois Field Offices Map & Contacts

NOTE: Please ensure that your state is selected in the dropdown menu above to find the state office contact information, and speak to a program specialist before attempting to fill out any forms or applications. This will save you time in completing your application.

Engineering

Key WEP Engineering Resource Page

 

Individual states will have particular requirements based on state and local regulations. Please contact the local RD office in the state where your project is located.

Link to National RUS Bulletins

Listed below are links to specific required Illinois Instruction 1780 Guides
Guide 0  Applicant's Application Checklist Water & Waste Project
Guide 10  Addendum to Rural Development Supplemental General Conditions
Guide 11  Construction Contract Documents for USDA projects
Guide 11A  Agency Concurrence
Guide 11B  Field Order (Fillable)
Guide 11C  Work Change Directive (Fillable)
Guide 12  Construction Contracts Affirmative Action Requirements Goals (%) for Minority and Women Participation

Other Illinois Water and Waste Forms
USDA RD IL Exhibit A - Engineer's Services (Fillable)
USDA-RD EJCDC Exhibit C - Compensation for Engineering Services (Fillable)
Preliminary Engineer Report Checklist (Revised 4/4/2013)
Water/Sewer Funding Criteria by Agency
IL Dept of Ag Pipeline Construction Standards
1940-Q Exhibit A-1

Present Worth Analysis

Interest Rates

Current interest rates for 1 st Quarter FY 2019, effective October 1, 2018 to December 31, 2018

Poverty:  2.375%
Intermediate:  3.250%
Market:  4.000%

Contacts

Map of Illinois Water and Waste Program Contacts

USDA Rural Development
1691 N. 31ST Road, Suite 3
Ottawa, IL 61350
815-433-0551 ext. 4

USDA Rural Development
312 E. Backbone Rd., Suite B
Princeton, IL 61356
815-875-8732 ext. 4

USDA Rural Development
2110 West Park Court, Suite B
Champaign, IL 61821
217-352-3536 ext. 4

USDA Rural Development
2701 South Banker, Suite 103A
Effingham, IL 62401
217-347-7107 ext. 4

USDA Rural Development
502 Comfort Drive
Marion, IL 62959
618-993-5396 ext. 4

USDA Rural Development
221 Withers Drive
Mt. Vernon, IL 62864
618-244-0773 ext. 4

USDA Rural Development
233 S. Soangetaha Road
Galesburg, IL 61401
309-342-5138 ext. 4

USDA Rural Development
1904 West Lafayette, Suite 3
Jacksonville, IL 62650
217-243-1535 ext. 4