Water & Waste Disposal Loan Guarantees in South Dakota

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.

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.

South Dakota Community Programs Contacts

Community Programs Map

Tim Potts, Community Programs (CP) Director
Phone: (605) 858-6678
Fax: (855) 262-1943

Brian Ring, CP Specialist
1717 N. Lincoln Avenue Suite 102
Pierre, SD  57501
Serves Corson, Dewey, Hughes,
Hyde, Jones, Lyman, Mellette, Potter,
Stanley, Sully, Todd, Tripp,
and Ziebach
Phone: (605) 301-3411
Fax: (855) 262-1942

Alison Larson, CP Specialist
2914 Broadway
Yankton, SD  57078
Serves Brookings, Clark, Clay, Codington,
Deuel, Grant, Hamlin, Kingsbury,
Lake, Lincoln, Minnehaha, Moody,
Turner, Union, and Yankton
Phone: (605) 655-3516
Fax: (855) 262-1938

Diane Sieperda, CP Specialist
12408 East Benson Road
Sioux Falls, SD  57104
Serves Brookings, Clark, Clay, Codington,
Deuel, Grant, Hamlin, Kingsbury,
Lake, Lincoln, Minnehaha, Moody,
Turner, Union, and Yankton
Phone: (605) 937-4773
Fax: (855) 262-1944

Valerie Jensen, CP Specialist
524 Enterprise Street S, Ste. 100
Aberdeen, SD  57401
Serves Brown, Campbell, Day, Edmunds,
Faulk, Marshall, McPherson, Roberts,
Spink, and Walworth
Phone: (605) 824-3624
Fax: (855) 262-1939

Vacant, CP Specialist
1820 North Kimball Suite C
Mitchell, SD  57301
Serves Aurora, Beadle, Bon Homme,
Brule, Buffalo, Charles Mix,
Davison, Douglas, Gregory, Hand,
Hanson, Hutchinson, Jerauld, 
McCook, Miner, and Sanborn
Phone: (605) 299-3349
Fax: (855) 262-1941

Dylan Tramp, CP Specialist
414 East Stumer Road Suite 200
Rapid City, SD  57701
Serves Bennett, Butte, Custer, Fall
River, Haakon, Harding, Jackson,
Lawrence, Meade, Oglala Lakota,
Pennington, and Perkins
Phone: (605) 858-6679
Fax: (855) 262-1943

Katie Hammer, Loan Specialist
414 East Stumer Road Suite 200
Rapid City, SD  57701
Serves Bennett, Butte, Custer, Fall
River, Haakon, Harding, Jackson,
Lawrence, Meade, Oglala Lakota,
Pennington, and Perkins
Phone: (605) 858-6703
Fax: (855) 262-1943

Linda Ochsner, CP Specialist
200 4th Street SW, Federal Bldg., Rm. 210
Huron, SD  57350
(605) 352-1111

Gaby Bassett, CP Technician
414 East Stumer Road Suite 200
Rapid City, SD  57701
Phone: (605) 858-6701
Fax: (855) 262-1943

Torian Mitchell, CP Technician
524 Enterprise Street S, Ste. 100
Aberdeen, SD  57401
Phone: (605) 824-3627
Fax: (855) 262-1939