Water & Waste Disposal Loan Guarantees in Michigan

The Water & Waste Disposal Loan Guarantees program in Michigan helps private lenders provide affordable commercial financing to qualified borrowers to construct, expand, or modernize clean and reliable drinking water, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage facilities in rural areas.

Eligible borrowers include state and local governmental entities, federally recognized Indian tribes, and non-profit organizations that have the legal authority to construct, operate, and maintain the proposed facility, assess taxes or user charges, and pledge revenues to repay the loan. Commercial lenders applying for the guarantee must meet USDA lender eligibility criteria established under the OneRD Guarantee Loan Initiative regulations.

Eligible projects must serve rural areas, cities, or towns with populations of 50,000 or fewer. Eligible use of proceeds includes construction, rehabilitation, or improvement of drinking water systems, wastewater treatment facilities, sanitary solid waste disposal systems, and storm water drainage, as well as associated legal, engineering, and equipment costs. Projects must demonstrate technical, environmental, and financial feasibility.

Applications are accepted on a continuous, rolling basis year-round. Eligible private lenders submit application packages electronically through USDA Rural Development's online OneRD Guarantee Loan Initiative portal or in consultation with the USDA Rural Development Michigan State Office.