Revolving Funds for Financing Water and Wastewater Projects in Michigan

The Revolving Funds for Financing Water and Wastewater Projects program helps qualified nonprofits create revolving loan funds to extend and improve water and waste disposal systems in rural areas. Good practices help save tax dollars, protect the natural environment, and support businesses looking to locate or expand operations.

Eligible applicants are nonprofits that possess legal authority to operate a revolving loan fund and demonstrate financial, technical, and managerial capacity. Applicants must provide a comprehensive work plan that details their capability to make and service loans and shows the feasibility of the relending program. A minimum non-in-kind match of 20 percent is required from the applicant or a third party.

Grant funds are used to capitalize revolving loan funds for water and wastewater systems operated by state and local government entities, nonprofits, and federally recognized Indian tribes. Loans made from the revolving fund can cover pre-development costs or short-term small capital improvement projects not tied to routine operations and maintenance. Eligible service areas include rural areas and towns with populations of 10,000 or fewer, tribal lands, and colonias.

Applications are submitted electronically through Grants.gov when the application period opens. Awardees must enter into a grant agreement and a multi-tier action environmental compliance agreement complying with 7 CFR Part 1970 prior to disbursing subrecipient loans.