Water & Waste Disposal Loan Guarantees in Iowa

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

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. 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.


Who may apply for this program?
Lenders need the legal authority, financial strength and sufficient experience to operate a successful lending program. This includes lenders that are subject to supervision and credit examination by the applicable agency of the United States or a State including:

  • Federal and State-chartered banks.
  • Savings and loans.
  • Farm Credit Banks with direct lending authority.
  • Credit unions.

Other non-regulated lending institutions may also be approved by the Agency under the criteria of the OneRD regulation.

Who may qualify for these loan guarantees?

Eligible borrowers are:

  • Public bodies.
  • Federally-recognized Tribes.
  • Non-profit businesses.

What is an eligible area?
Areas that may be served include:

  • Rural areas with populations of 50,000 residents or less. 
  • Tribal lands in rural areas
  • Colonias
  • Check eligible addresses.

How may 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:

  • Guarantee and lender fees
  • Legal and engineering fees
  • Land acquisition and equipment
  • Additional borrower labor to install and extend service
  • Initial operating expenses
  • Capitalized interest
  • Purchase of existing facilities to improve service or prevent loss of service.
  • Debt refinancing in some instances.
  • See Code of Federal Regulations 7 CFR, Part 5001 for a complete list.

What is the maximum amount of a loan guarantee?
The loan guarantee percentage is published annually in a Federal Register notice. WEP loans approved in Fiscal Year 2021 will receive an 80 percent guarantee.
 
What are the loan terms?
The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower’s repayment ability. The loan term will not exceed 40 years.

What are the interest rates?

  • Interest rates are negotiated between the lender and borrower.
  • Rates may be fixed or variable.
  • Variable interest rates may not be adjusted more often than quarterly.

What are the applicable fees?

  • There is an initial guarantee fee, currently 1 percent of the guaranteed amount.
  • There is a fee for the Issuance of Loan Note Guarantee Prior to Construction of 0.5 percent.
  • Reasonable and customary fees for loan origination are negotiated between the borrower and lender.

What are the underwriting requirements?

  • The lender will conduct a credit evaluation using credit documentation procedures and underwriting processes that are consistent with generally accepted prudent lending practices and also consistent with the lender’s own policies, procedures and lending practices.
  • The lender’s evaluation must address any financial or other credit weaknesses of the borrower and project and discuss risk mitigation requirements.
  • The lender must analyze all credit factors to determine that the credit factors and guaranteed loan terms and conditions ensure guaranteed loan repayment.
  • Credit factors to be analyzed include but are not limited to character, capacity, capital, collateral, and conditions.  
  • 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?
The lender is responsible for servicing the entire loan and taking all servicing actions that a reasonably prudent lender would perform in servicing its own portfolio of loans that are not guaranteed.

 How do we get started?

  • Lenders: Contact a representative in your local RD office. For details visit our website at OneRDGuarantee@usda.gov.
  • Borrowers: Ask your private lender if they participate in USDA loan guarantee programs.

Who can answer questions?

Contact the local Rural Development office that serves your area.

What governs this program?

Code of Federal Regulations, 7 CFR 5001.

OneRD FY2021 Annual Notice 

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?"

Application Documents:

  • RD 3575-1, Application for Loan and Guarantee

  • Applicant’s Organizational Documents (Nonprofit Organizations Only)

  • Lender’s disclosure of conflicts of interest, if applicable

  • Environmental Assessment - Please contact your local area office to determine the level of environmental assessment required.  Early submittal recommended. Funding cannot be determined until environmental review is complete.

  • Preliminary Engineering Report – in a format required by the lender

  • Lender’s credit evaluation

  • Applicant’s most recent financial statements or audit (not more than 12 months old) Forms RD 442-2 and RD 442-3 or similar format may be used

  • Proposed loan agreement

  • Appraisal (if required by lender)

  • Credit Report (if required by lender)

  • AD-3030, Representation Regarding Felony Conviction or Tax Delinquent Status (Nonprofit organizations only)

    Survey on Ensuring Equal Opportunity for Applicants (optional)

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:

Environmental Assessments

Air Quality

Project emissions, including those created by potential secondary beneficiaries, shall be examined for conformance to the Clean Air Act and the Environmental Protection Agency's National Primary and Secondary Ambient Air Quality Standards.
Iowa has two "non-attainment" areas. The following link from EPA lists all the nonattainment areas: http://www.epa.gov/airquality/greenbook/

For questions contact Air Quality Helpline with Iowa DNR: (877) AIR-IOWA (247-4692).
If the proposal will emit large quantities of air pollutants, contact your Rural Development loan specialist and provide the information from Iowa DNR's Air Quality Section. Specialists will review the information to ascertain the level of environmental review required.

To determine emissions from other facilities in the project area check the EPA website at www.epa.gov/echo/, then:

1. Click on "Air data", in the Facility Characteristics check the "other minor" box.


2. In the Geographic Location boxes click on region 7, State IOWA, and fill in county name, and search. Print out page for file.

Air permits can be viewed at: http://www.iowadnr.gov/air/prof/const/const.html

Approved Coastal Zone Management Area
Iowa does not have any coastal zone management areas. http://coast.noaa.gov/czm/mystate/

Coastal Barrier included in Coastal Barrier Resources System Natural Landmark
Iowa does not have any coastal barrier areas. http://www.fws.gov/cbra/Maps/index.html#LocatorMaps.


Natural Landmark
The National Park Service web site can be found at: www.nps.gov. Under “Find a Park,” click on Iowa to locate national monuments, national historic sites, and historic trails.

Place printout from the website in the file.


Prime Forest Lands
There are no national prime forest lands in Iowa. http://www.fs.fed.us/maps/forest-maps.shtml

For State Forests: Check the DNR website at http://www.iowadnr.gov/Destinations/StateForests.aspx.

Place a printout from the website in the file.

Prime Rangeland
Iowa does not have any prime range land areas. http://www.fs.fed.us/maps/forest-maps.shtml.


Sole Source Aquifer Recharge Area
Iowa does not have any designated sole source aquifers as referenced at the EPA website www.epa.gov/safewater/sourcewater/pubs/qrg_ssamap_reg7.pdf


Wild or Scenic Rivers
Iowa does not have any Wild and Scenic River as defined under the Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271) as referenced at the National Park Service website www.rivers.gov.

The State of Iowa and the Nationwide Rivers Inventory have designated several areas as protected waterways. View the list at http://www.nps.gov/ncrc/programs/rtca/nri/states/ia.html.

 

Wilderness (designated or proposed under the Wilderness Act)

Iowa has no national wilderness areas.

You may access information national wilderness areas and related state areas at the following sites:

WILDERNESS AREA: www.wilderness.net

The Forest Service, Bureau of Land Management, Fish & Wildlife Service, and National Park Service are charged with stewardship of Wilderness Area lands while providing for appropriate human use and enjoyment. To find out more about these special places, see the site above, which is jointly managed by the University of Montana and the four federal agencies that manage wilderness areas. This is an interactive site where you may type in an address to determine if there is a wilderness area within the area of a proposed project.

• In the left column select “Maps, Data and Images” / select Maps / Under “Online Maps” in the first paragraph, select “GIS Maps” / top header of the website, Choose one of two options for your search.
• Zoom by Typing or Select a Wilderness.
• Find a Place / City / Road.
• Select “Go” which takes you to the area of interest – Along the bottom of the page is the color codes for “Wilderness Managed By ……………”
• Gear symbol in the top right hand corner allows you to save and / or print the map as a source document for the environmental report.

STATE WILDLIFE MANAGEMENT AREA: http://www.iowadnr.com/wildlife/wmamaps/index.html
• Click on the appropriate county on the left-hand side of the screen.

STATE PRESERVE: http://www.iowadnr.gov/Destinations/StatePreserves.aspx


STATE PARK OR RECREATION AREA: http://www.iowadnr.gov/Destinations/StateParksRecAreas.aspx

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.

Kate Sand
Community Programs Director in Iowa
ph: 515-284-4459
Kate.Sand@usda.gov

Area Office Contacts
 
Area 1 - Iowa Falls Area Office
 Randy Hildreth, Area Director
 840 Brooks Road
 Iowa Falls, IA 50126
 Phone: 641-648-5181 Ext. 4 Fax: 866-255-6573
 
Counties Served: Butler, Cerro Gordo, Floyd, Franklin, Grundy, Hardin, Marshall, Mitchell, Tama and Worth
 
Area 2 - Waverly Area Office
 Randy Hildreth, Area Director
 1510 3rd Street, SW
 Waverly, IA 50677
 Phone: 319-352-1715 Ext. 4 Fax: 866-255-6573
 
Counties Served: Allamakee, Black Hawk, Bremer, Buchanan, Chickasaw, Clayton, Delaware, Fayette, Howard and Winneshiek

Area 3 - Tipton Area Office
 Randy Campbell, Area Director
 127 West South Street
 Tipton, IA 52772
 Phone: 563-886-6006 Ext. 4 Fax: 866-255-6573
 
Counties Served: Benton, Cedar, Clinton, Dubuque, Iowa, Jackson, Johnson, Jones, Linn and Scott
 
Area 4 - Mt. Pleasant Area Office
 Randy Campbell, Area Director
 709 S. Iris Street, Suite 103
 Mount Pleasant, IA 52641
 Phone: 319-986-5800 Ext. 4 Fax:  855-251-2237
 
Counties Served: Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Muscatine, Van Buren and Washington
 
Area 5 - Albia Area Office
 Randy Campbell, Area Director
 1709 South "B" Street
 Albia, IA 52531
 Phone: 641-932-3031 Ext. 4 Fax: 855-251-2237
 
Counties Served: Appanoose, Davis, Jasper, Lucas, Mahaska, Marion, Monroe, Poweshiek, Wapello and Wayne
 
Area 6 - Indianola Area Office
 Randy Campbell, Area Director
 909 East 2nd Aveune, Suite C
 Indianola, IA 50125
 Phone: 515-961-5365 Ext. 4 Fax: 855-251-2238
 
Counties Served: Adair, Clarke, Dallas, Decatur, Guthrie, Madison, Polk, Ringgold, Union and Warren

Area 7 - Atlantic Area Office
 Randy Campbell, Area Director
 511 West 7th Street
 Atlantic, IA 50022
 Phone: 712-243-2107 Ext. 4 Fax: 855-251-2238
 
Counties Served: Adams, Audubon, Cass, Fremont, Harrison, Mills, Montgomery, Page, Pottawattamie, Shelby and Taylor

Area 8 - Le Mars Area Office
 Randy Hildreth, Area Director
 1100 12th Street SW, Suite C
 Le Mars, IA 51031
 Phone: 712-546-5149 Ext. 4 Fax: 855-251-2245
 
Counties Served: Cherokee, Crawford, Ida, Lyon, Monona, O'Brien, Osceola, Plymouth, Sioux and Woodbury

Area 9 - Storm Lake Area Office
 Randy Hildreth, Area Director
 1619 North Lake Avenue
 Storm Lake, IA 50588
 Phone: 712-732-1851 Ext. 4 Fax: 855-251-2245
 
Counties Served: Buena Vista, Calhoun, Carroll, Clay, Dickinson, Emmet, Greene, Palo Alto, Pocahontas and Sac

Area 10 - Humboldt Area Office
 Randy Hildreth, Area Director
 1301 6th Avenue North, Suite 1
 Humboldt, IA 50548
 Phone: 515-332-4411 Ext. 4 Fax: 855-251-2245
 
Counties Served: Boone, Hamilton, Hancock, Humboldt, Kossuth, Story, Webster, Winnebago and Wright