Opportunity Information: Apply for RDUP RFP 0209
Apply for RDUP RFP 0209
- The Utilities Programs in the community development sector is offering a public funding opportunity titled "Revolving Fund Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.864 Grant Program to Establish a Fund for Financing Water and Wastewater Projects.
- This funding opportunity was created on Apr 15, 2009 and posted on Feb 26, 2009.
- Applicants must submit their applications by Jun 2, 2009. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The funding agency has allocated a total of $496,000.00 to eligible and selected applicants.
- Each selected applicant is eligible to receive up to $496,000.00 in funding.
- The number of recipients for this funding is limited to 1 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
- An applicant is eligible to apply for the RFP grant if it 1. Is a private, non profit organization that has tax exempt status from the United States Internal Revenue Service (IRS) 2. Is legally established and located within one of the following (a) A state within the United States (b) The District of Columbia (c) The Commonwealth of Puerto Rico or (d) A United States territory 3. Has the legal capacity and authority to carry out the grant purpose 4. Has a proven record of successfully operating a revolving loan fund to rural areas 5. Has capitalization acceptable to the Agency, and is composed of at least 51 percent of the outstanding interest or membership being citizens of the United States or individuals who reside in the United States after being legally admitted for permanent residence 6. Has no delinquent debt to the Federal Government or no outstanding judgments to repay a Federal debt 7. Demonstrates that it possesses the financial, technical, and managerial capability to comply with Federal and State laws and requirements.
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Opportunity Summary:
The Revolving Fund Program (RFP) is a discretionary federal grant opportunity run through USDA Rural Development Utilities Programs (CFDA 10.864) aimed at strengthening rural drinking water and wastewater systems. The program is built around a straightforward premise: reliable, safe water and environmentally sound waste disposal are essential for public health and for rural economic stability. Communities that can count on dependable water infrastructure are better positioned to attract and retain residents, support local businesses, and pursue long-term development, while communities without it often struggle to sustain growth. Through this program, Rural Development seeks to direct assistance to rural areas with the greatest need, while encouraging infrastructure improvements that protect the environment.
Rather than providing direct project construction grants to towns or utilities, this program funds qualified private nonprofit organizations so they can create and operate a revolving loan fund. In practice, USDA provides a grant to an eligible nonprofit, and that nonprofit uses the grant funds as capital to make loans to eligible rural entities. As those loans are repaid, the money cycles back into the fund and can be loaned out again, extending the value of the initial federal award over time. The eligible borrowers served by the revolving loan fund are the same types of entities that would qualify for USDA Rural Development Water and Waste Disposal loans, loan guarantees, or grants, meaning the revolving fund is designed to complement and feed into the existing Rural Development water and wastewater financing pipeline.
The loans made from the revolving fund are intended for two main uses. First, they can cover predevelopment costs for water or wastewater projects, which often include early-stage expenses that are necessary to move a project toward full financing but can be difficult for small rural systems to pay upfront. Second, they can support short-term, small capital projects that are not part of the routine operation and maintenance of existing systems. The program sets clear lending limits: financing to any single eligible entity may not exceed $100,000, the repayment term may not exceed 10 years, and the interest rate is established in the approved grant work plan submitted by the nonprofit and accepted by the agency. This structure is meant to keep the loans accessible and focused on smaller, time-sensitive needs that can unblock larger infrastructure investments.
Eligibility to apply for the federal grant is limited to private nonprofit organizations with IRS-recognized tax-exempt status that are legally established and located in a U.S. state, the District of Columbia, Puerto Rico, or a U.S. territory. The applicant must have the legal authority to carry out the program purpose and must demonstrate a proven track record of successfully operating a revolving loan fund in rural areas, since the government is effectively relying on the organization to function as a capable lender and program administrator. Additional requirements include having capitalization acceptable to the agency; meeting ownership/composition standards (at least 51 percent of the outstanding interest or membership must be U.S. citizens or lawful permanent residents living in the U.S.); having no delinquent federal debt or outstanding judgments related to repayment of federal debt; and showing strong financial, technical, and managerial capacity to comply with federal and state laws and program requirements.
For this specific posting (Funding Opportunity Number RDUP RFP 0209), the program anticipated a single award with total estimated funding of $496,000, with both the award floor and ceiling listed at $496,000, indicating one grant at that amount. Cost sharing or matching was required. Key dates listed include a posted date of February 26, 2009, an original closing date of May 31, 2009, and a current closing date of June 2, 2009, with the opportunity archived on June 30, 2009. The activity category is Community Development, reflecting the program goal of improving rural quality of life and economic prospects through essential water and wastewater infrastructure readiness and small-scale capital support.
Administrative contact information in the announcement identifies Lorrie Davis, Loan Specialist, at 202-720-9631, and references a Water and Environmental Programs website link for additional program resources.
Revolving Fund Program (RFP) - FAQs
What is the Revolving Fund Program (RFP)?
The Revolving Fund Program (RFP) is a discretionary federal grant opportunity administered through USDA Rural Development Utilities Programs (CFDA 10.864). Its purpose is to strengthen rural drinking water and wastewater systems by supporting financing that helps rural communities move projects forward and address small, short-term capital needs.
What is the basic goal of this program?
The program is based on the idea that reliable, safe drinking water and environmentally sound wastewater disposal are essential for public health and rural economic stability. By helping rural communities improve water and wastewater readiness and infrastructure, the program aims to support community development, protect the environment, and help rural areas remain viable places to live and work.
Does this program provide construction grants directly to towns or utilities?
No. This program does not provide direct project construction grants to towns or utilities. Instead, USDA awards a grant to a qualified private nonprofit organization, and that nonprofit uses the grant funds to establish and operate a revolving loan fund that makes loans to eligible rural entities.
How does a revolving loan fund work under this program?
USDA provides grant funding to an eligible nonprofit, and the nonprofit uses that funding as loan capital. As borrowers repay their loans, the repayments return to the fund and can be loaned out again. This structure is intended to extend the impact of the initial federal award over time.
Who is eligible to apply for the USDA grant?
Only private nonprofit organizations with IRS-recognized tax-exempt status may apply. The organization must be legally established and located in a U.S. state, the District of Columbia, Puerto Rico, or a U.S. territory, and must have the legal authority to carry out the program purpose.
What experience must an applicant nonprofit demonstrate?
The applicant must demonstrate a proven track record of successfully operating a revolving loan fund in rural areas. USDA relies on the nonprofit to function as a capable lender and program administrator, so prior rural revolving loan fund experience is a key requirement.
Are there ownership or membership composition requirements for applicant nonprofits?
Yes. At least 51 percent of the outstanding interest or membership must be U.S. citizens or lawful permanent residents living in the United States.
Can an organization apply if it has delinquent federal debt?
No. Applicants must have no delinquent federal debt and no outstanding judgments related to repayment of federal debt.
What capacity must an applicant show to be eligible?
The applicant must show strong financial, technical, and managerial capacity to comply with applicable federal and state laws and program requirements. The organization must also have capitalization acceptable to the agency.
Who can receive loans from the revolving loan fund?
The revolving loan fund serves eligible rural entities that are the same types of entities that would qualify for USDA Rural Development Water and Waste Disposal loans, loan guarantees, or grants. The revolving fund is designed to complement and feed into USDA Rural Development's existing water and wastewater financing pipeline.
What can the revolving fund loans be used for?
Loans are intended for two primary uses: (1) covering predevelopment costs for water or wastewater projects (early-stage expenses needed to move a project toward full financing), and (2) supporting short-term, small capital projects that are not part of routine operation and maintenance of existing systems.
What is meant by "predevelopment costs" in this program?
Predevelopment costs are early-stage project expenses that help advance a water or wastewater project toward full financing. These are often necessary upfront costs that can be difficult for small rural systems to pay before larger financing is secured.
Are routine operations and maintenance (O&M) expenses eligible uses of loan funds?
No. The program specifies that loans may support short-term, small capital projects that are not part of the routine operation and maintenance of existing systems.
What is the maximum loan amount that can be provided to a single eligible entity?
Financing to any single eligible entity may not exceed $100,000.
What is the maximum repayment term for loans made from the revolving fund?
The repayment term may not exceed 10 years.
How is the interest rate for revolving fund loans determined?
The interest rate is established in the approved grant work plan submitted by the nonprofit and accepted by the agency.
How much funding was anticipated under this specific funding opportunity?
For Funding Opportunity Number RDUP RFP 0209, the program anticipated a single award totaling $496,000. The award floor and ceiling were both listed as $496,000, indicating one grant at that amount.
Was cost sharing or matching required for this opportunity?
Yes. Cost sharing or matching was required.
What were the key dates for this posting?
The posted date was February 26, 2009. The original closing date was May 31, 2009, and the current closing date was June 2, 2009. The opportunity was archived on June 30, 2009.
What is the activity category for this funding opportunity?
The activity category is Community Development, reflecting the program focus on improving rural quality of life and economic prospects through water and wastewater project readiness and small-scale capital support.
Who is the administrative contact listed in the announcement?
The administrative contact identified in the announcement is Lorrie Davis, Loan Specialist, reachable at 202-720-9631.
Where does the announcement point applicants for additional program resources?
The announcement references a Water and Environmental Programs website link for additional program resources.
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