Water & Waste Disposal Loan Guarantees in Colorado

PROGRAM STATUS:

Open

One RD Guarantee

Beginning Oct. 1, 2020, this program will be streamlined under the OneRD Guarantee Loan Initiative. For more information, visit www.rd.usda.gov/onerdguarantee

Fees and Population Factsheet | PDF

What does this program do?

This program helps private lenders provide affordable financing to qualified borrowers to improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.

Who may apply?

Private lenders may apply for a loan guarantee on loans they make to eligible borrowers who are otherwise unable to obtain commercial credit on reasonable terms.

Eligible borrowers include:

What is an eligible area?

Areas that may be served include:

How may borrowed funds be used?

Construct or improve facilities for:

  • Drinking water
  • Sanitary sewers
  • Solid waste disposal
  • Storm water disposal facilities

Depending on the circumstances, some funds may also be used for:

  • Legal and engineering fees
  • Land acquisition and equipment
  • Start-up operations and maintenance
  • Capitalized interest
  • Other costs determined to be necessary for completion of the project
  • See Code of Federal Regulations 7 CFR, Part 1779.2 for a complete list

What are the terms of a loan guarantee?

  • The maximum guarantee is typically 90 percent of the loan amount.
  • One-time guarantee fee = 1.0% of principal loan amount times the % of guarantee.
  • Interest rates may be fixed or variable as negotiated between the lender and the borrower, subject to USDA approval.
  • Up to 40-year payback period, based on the useful life of the facilities financed.
  • Balloon payments are prohibited.

Are there additional requirements?

  • The borrower must have the legal authority needed to construct, operate and maintain the proposed facilities and the services they provide.
  • All facilities financed with the aid of a loan guarantee must be used for public purposes.

Who will service the loan?

Loans guaranteed through this program are serviced through the private lender that makes the loan, just as they would be without a guarantee.

How do we get started?

  • Lenders: Contact a representative in your local RD office for details on how to become an approved lender.
  • Borrowers: Ask your private lender if it participates in USDA loan guarantee programs.

Who can answer questions?

  • Contact your local RD office.
  • Participating nonprofit associations also offer assistance and training.

What governs this program?

  • Code of Federal Regulations, 7 CFR, Part 1779
  • 5 USC 301, 7 USC 1989 and 16 USC 1005

Why does USDA Rural Development do this?

This program helps extend access to clean, reliable water and waste disposal systems for households and businesses in eligible rural areas and towns. Affordable terms and good practices can save tax dollars, improve the natural environment and may be necessary for manufacturers and other types of 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?"

NOTE: Please select your state 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.

National Architect Requirements:

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

National Engineering Requirements:

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

State Environmental Requirements:

The State Environmental Coordinator assists all Rural Development program staff, applicants, owners, and other concerned parties in meeting the Agency requirements for compliance with the National Environmental Policy Act, The National Historic Preservation Act, and other laws governing the protection of environmental and cultural resources.For more information please contact the Rural Development loan specialist servicing your area using the following link Colorado Office Contacts or the RD State Architect: Thom Sakata (720) 544-2912, or email thom.sakata@co.usda.gov. You can also visit the following sites for a complete overview: Water and Environmental

  • 40 CFR Part 1500 USDA Rural Development Environmental Compliance Library Council on Environmental Quality - Regulation for Implementing the Procedural Provisions of the National Environmental Policy Act
  • 7 CFR 1794 Rural Utilities Service Environmental Policies and Procedures
  • RUS Bulletin 1794A-602 Guide for Preparing the Environmental Report for Water and Environmental Program Proposals
  • RD Instruction Part 1940-G Environmental Program
  • RD Instruction 1970 Environmental
National Environmental Requirements:

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

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

There are currently no events scheduled.

Jim Van Horn, Director Community Facilities
USDA, Rural Development
Denver Federal Center
Building 56, Room E-2300
Denver, CO 80225
jim.vanhorn@usda.gov
(720) 544-2929

Program contacts (by specialists and county):
Kevin McCann - Denver - 720-544-2912
kevin.mccann@usda.gov

Allison Trujillo – Denver – 720-544-2920
Allison.Trujillo@usda.gov
Counties: Adams, Arapahoe, Boulder, Clear Creek, Douglas, Elbert, El Paso, Jefferson, Denver, Gilpin, Larimer, Pueblo, and Teller

Duane Dale – Cortez – 970-529-8375
Duane.Dale@usda.gov
Counties: Garfield, Moffat, Rio Blanco, Routt, Delta, Gunnison, Mesa, Montrose, and Pitkin

Duane Dale – Cortez – 970-529-8375
Duane.Dale@usda.gov
Counties: Archuleta, Dolores, Hinsdale, La Plata, Montezuma, Minera, Ouray, San Juan, and San Miguel

Joe Montgomery – 720-544-2931
Joe.Montgomery@usda.gov  
Counties: Chaffee, Custer Eagle, Fremont, Jackson, Grand, Lake, Park,and Summit

Tineel Baroz– 719-589-5661 x3653
Tineel.Baroz@usda.gov
Counties: Alamosa, Conejos, Costilla, Huerfano, Rio Grande, and Saguache

Michele Graham – 719-456-0120, x119
michele.graham@usda.gov
Counties: Baca, Bent, Crowley, Huerfano, Kiowa, Las Animas, Otero, and Prowers

Andria (Andi) Cox - 970-332-3017, x127
andria.cox@usda.gov
Counties: Kit Carson, Lincoln, Logan, Morgan, Phillips, Sedgwick, Washington, Weld, and Yuma