Water, Wastewater, and Solid Waste Disposal January 1, 2024
- Three categories:
FINANCING FOR SMALL MUNICIPAL RURAL WATER, WASTEWATER, AND SOLID WASTE SYSTEMS Rural Development a mission area of the United States Department of Agriculture (USDA) administers the Community Program's loans and grants. Guaranteed Loans, Direct Loans and Grants are available. Rural incorporated towns/cities not larger than 10,000 based on the latest decennial population census of the United States are eligible to apply. To qualify applicants must be unable to obtain the communities and small financing from other sources and/or their own resources at rates and terms they can afford. Public bodies and nonprofit corporations can be eligible applicants. Funds can be used for construction, land acquisition, legal fees, engineering fees, capitalized interest, equipment, initial operation and maintenance costs, project contingencies, and any other cost that is determined by Rural Development to be necessary for the completion of the project. Projects must be primarily for the benefit of rural users.
Direct Loans
Present Rates:
Market ................... 3.750 percent Intermediate .......... 3.000 percent Poverty .................. 2.250 percent
Market Rate - Available to applicants whose Median Household Income (MHI) of service area is greater than the non-metropolitan MHI of Georgia ($47,799). Intermediate Rate - Available to applicants whose MHI is not more than the non-metropolitan MHI ($47,799) of Georgia and who otherwise do not qualify for the poverty rate. Poverty Rate - Available to applicants whose MHI is either below the latest established nationwide poverty level MHI ($30,000) or below 80 percent of the non-metropolitan MHI of Georgia (80% of $47,799 = $38,239) and there are existing health/sanitation conditions that would be alleviated with the proposed project so as to comply with regulatory agencies' established standards. Rates are subject to change quarterly (January 1, April 1, July 1, and October 1). The market rate is based on the performance of the Bond Buyer Index. The intermediate rate is set 80% of the market rate. The poverty rate is set at 60% of the market rate. Rates are fixed and the maximum rate is established at the time the loan is approved. If rates drop by the time the loan is closed, the applicant is given the opportunity to receive the lower rate.
Interest Rates:
Guaranteed Loans - As negotiated by private lender and applicant and determined by Rural Development to be reasonable. May be a fixed or floating rate.
USDA is an equal opportunity provider, employer, and lender.
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