Revolving Funds for Financing Water and Wastewater Projects in Michigan

The Revolving Funds for Financing Water and Wastewater Projects program helps qualified nonprofit organizations establish revolving loan funds that provide financing to extend and improve water and waste disposal systems in rural communities. The program aims to assist very small communities in extending and improving water and waste treatment facilities for households and businesses, promoting good practices that conserve tax dollars, safeguard the natural environment, and foster local economic development.

To be eligible, applicants must be private nonprofit organizations with the legal authority to operate a revolving loan fund and the financial, technical, and managerial capacity to comply with applicable state and federal laws and regulations. Applicants are required to submit a comprehensive work plan demonstrating the feasibility of their lending program and their ability to make and service loans to eligible entities.

Revolving fund loans may be made to state and local governmental entities, nonprofits, and federally or state recognized Indian tribes located in rural areas and towns with populations of 10,000 or less, tribal lands in rural areas, or colonias. Loans issued from the revolving fund can be used for pre-development costs associated with water and wastewater treatment projects or for short-term, small capital improvement projects that are not part of regular operations and maintenance.

Applications are filed electronically through Grants.gov during open application cycles. Successful applicants receive an award letter accompanied by a grant agreement and a multi-tier action environmental compliance agreement outlining recipient responsibilities under Agency Environmental Policies and Procedures (7 CFR part 1970). Applicants must execute and return all agreements and required documentation prior to award disbursement.