Opportunity Overview
USDA Rural Development currently lists the Persistent Poverty One Percent Loan Program for Distressed Communities as open. Applications are accepted on an ongoing basis from October 1 through September 30 through RD Apply.
Purpose and Community Health Relevance
This program provides one percent financing for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage serving households and businesses in qualifying distressed rural communities located in persistent poverty counties. The primary purpose of the financed project must be to upgrade existing facilities or construct new facilities needed to meet applicable health or sanitary standards.
Eligible Applicants and Areas
Eligible applicants include most state and local governmental entities, private nonprofit organizations, and federally recognized Tribes that also satisfy the underlying Water and Waste Disposal program requirements. The project must serve a Distressed Community that is also located in a Persistent Poverty County. Eligible service areas generally include rural areas and towns with populations of 10,000 or fewer, rural Tribal lands, and colonias.
Funding and Terms
This is a loan program rather than a competitive grant. USDA lists a one percent interest rate and a repayment period of up to 40 years, based on the useful life of the facilities financed. The current national program page does not publish a single national applicant loan ceiling. Because this is loan financing, USDA does not state a grant matching-share requirement on the current program page.
Eligible Uses and Restrictions
Eligible uses follow the Water and Waste Disposal Loan and Grant Program and include acquisition, construction, or improvement of drinking water source, treatment, storage, and distribution systems; sewer collection, transmission, treatment, and disposal; solid waste collection, disposal, and closure; and storm water collection, transmission, and discharge. Irrigation is not an eligible use. Applicants must satisfy the applicable requirements of 7 CFR Part 1780 and the additional distressed-community and persistent-poverty eligibility tests.
How to Apply
Applications are accepted year round through RD Apply. Before package production, applicants should verify the current distressed-community and persistent-poverty mapping, service-area eligibility, engineering and environmental requirements, financial capacity, required forms and certifications, current appropriations, and any state-office instructions. USDA does not identify a separate Grants.gov application package for this loan program on the current national program page.
Atlas Assessment
This is a strong public-health infrastructure opportunity for very small and financially distressed rural communities where water, wastewater, solid-waste, or storm-water systems must be upgraded to meet health or sanitary standards. It does not establish a direct Dr. Miltie applicant or vendor path and does not fund clinical, telehealth, or N9+ equipment.
Official source: USDA Rural Development, Persistent Poverty One Percent Loan Program for Distressed Communities.