Water & Waste Disposal Loan Guarantees in Michigan

The Water and Waste Disposal Loan Guarantee program encourages private lenders to provide financing for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage in rural communities. By offering loan guarantees, USDA Rural Development reduces lender risk to expand access to private capital for essential community infrastructure in rural areas of Michigan.

Private lenders apply for the guarantee on behalf of eligible borrowers, which include local and municipal governments, special districts, non-profit organizations, federally recognized tribes, and commercial entities. Eligible projects must serve rural areas and towns with populations of 50,000 or fewer. Borrowers must demonstrate sufficient creditworthiness, legal authority to borrow, and the ability to operate and maintain the facility.

Eligible project costs include the construction, acquisition, enlargement, or improvement of drinking water systems, sewer and wastewater treatment facilities, sanitary solid waste management and disposal sites, and storm water drainage. Loan funds may also cover related project costs such as engineering fees, legal fees, site acquisition, and eligible debt refinancing.

Applications are accepted on a continuous, rolling basis throughout the year through USDA Rural Development's OneRD Guarantee system. Interested borrowers work directly with an approved commercial lender, who prepares and submits the guarantee application to the USDA Rural Development Michigan State Office.