Revolving Fund Program
🏛 Rural Utilities Service
Can you apply?
This grant is for private nonprofits establishing or capitalizing revolving loan funds for water and wastewater infrastructure financing. Eligible applicants must be qualified private nonprofit entities with demonstrated capacity to manage a revolving fund and lend to eligible borrowers. The program supports pre-development costs, emergency equipment replacement, and small-scale service extensions for rural water and wastewater systems. Geographic focus is rural areas served by USDA Rural Utilities Service.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
Program description
This program provides grants to qualified private, non-profit entities to capitalize revolving funds for the purpose of providing financing to eligible entities for pre-development costs associated with proposed water and wastewater projects or with existing water and wastewater systems, and short-term costs incurred for replacement equipment, small-scale extension of services, or other small capital projects that are not part of the regular operations and maintenance activities of existing water and wastewater systems.
Who can apply
Eligible applicants
Demographic focus
How to apply
Application links
Key dates & requirements
Required documents
- SF-424 (Application for Federal Assistance)
- Project narrative and revolving fund business plan
- Organizational capacity documentation and lending experience
- Financial statements and audit reports
- Evidence of cost-sharing commitment
- Borrower recruitment and outreach strategy
Program contact
- 👤 Lois E East Grantor
- 📧 Water-RD@usda.gov
- 📞 660-492-4268
Funding track record
Recent awards under CFDA 10.864 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$858,001
-
$858,001
-
$600,000
-
$600,000
-
$200,000
-
$80,000
Top States by Funding
- AR 2 awards $1.5M
- OK 2 awards $1.5M
- AK 1 awards $0.2M
- WA 1 awards $0.1M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 10.864). How funding has trended year over year.
| 2024 | $1,200,000 | |
| 2025 | $1,000,000 | |
| 2026 est. | $1,000,000 |
FAQ
Who can apply for this grant?
Private nonprofit organizations with capacity to establish and manage a revolving loan fund. Applicants must demonstrate financial and organizational capability.
What can the grant money be used for?
Capitalizing revolving funds that will finance pre-development costs, emergency equipment replacement, and small capital projects for water and wastewater systems.
Are there matching fund requirements?
Yes, cost sharing is required. Exact percentage varies by application but typically 20% or more of project costs.
Is this a direct subsidy or must I lend the money out?
Funds must be capitalized into a revolving loan fund. You'll provide loans to eligible water and wastewater entities, not direct grants.
When is the deadline and can I apply anytime?
Deadline is July 3, 2026. Check with USDA RD for details on application windows or rolling deadlines.
💡 Tips for applicants
- Emphasize your organization's lending infrastructure and past experience managing loan portfolios or similar revolving mechanisms.
- Connect your revolving fund model directly to rural communities with water and wastewater challenges.
- Document your underwriting processes and borrower vetting procedures to show creditworthiness assessment capability.
- Develop a realistic 5- to 10-year projection showing how the revolving fund will grow and serve more borrowers over time.
- Show alignment with USDA RD's rural development priorities and the communities your nonprofit already serves.
⚠️ Common mistakes
Weak documentation of lending capacity or past loan management experience. Vague or unrealistic projections for loan demand and fund growth. Inadequate discussion of how borrower eligibility will be determined and managed.
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