NRWA Rural Water Loan Fund (RWLF)

About this program

The National Rural Water Association, supported by a USDA/RUS grant and administered with USDA Rural Development, operates the Rural Water Loan Fund (RWLF) to provide loans to small rural water and wastewater systems for pre-development, short-term replacement equipment, small service extensions, and other small capital projects outside routine O&M. Loans are capped at $100,000 or 75% of project costs (whichever is less), carry up to a 10-year repayment term (not to exceed the useful life of financed items), offer 5‑year interest‑only pre-development loans and 90‑day no‑interest disaster loans, and use the lower of the RUS poverty or market interest rate with a 3% minimum at closing. Eligible applicants are public entities—municipalities, counties, special purpose districts, Native American tribes, and nonprofit corporations/cooperatives—serving rural systems (typically up to 10,000 population), and applicants may need fidelity bond insurance, a promissory note or comparable collateral; priority is given to energy-efficiency upgrades.