The Rural Utilities Service (RUS) has grants to help support the predevelopment costs of rural water projects
The Rural Utilities Service (RUS) not only finances rural water and wastewater projects, but it also has two grant programs available to support predevelopment costs on these projects. There are two available grant opportunities.
SEARCH – Special Evaluation Assistance for Rural Communities and Households Grants are available in rural areas with a population of 2,500 or less. The maximum grant is $30,000.
This program helps very small, financially distressed rural communities with predevelopment feasibility studies, design and technical assistance on proposed water and waste disposal projects. Most state and local government entities, nonprofit organizations, and federally recognized tribes in an eligible area are welcome to apply. An eligible area is a rural area with a population of 2,500 or less and has a median household income below the poverty line or less than 80 percent of the statewide non-metropolitan median household income based on latest Census data. Funds from this grant can be used for:
- Feasibility studies to support applications for funding water or waste disposal projects
- Preliminary design and engineering analysis
- Technical assistance for the development of an application for financial assistance
To learn more about the SEARCH grant and how to apply, please contact your local RD office. Applications are currently open year-round.
Water & Waste Disposal Predevelopment Planning Grants are available in rural areas with a population of 10,000 or less. The maximum grant is $60,000 or 75% of the predevelopment planning costs.
This program helps eligible low-income communities plan and develop applications for proposed USDA Rural Development water or waste disposal projects. Most state and local government entities, nonprofit organizations, and federally recognized tribes in an eligible area are welcome to apply. An eligible area is any rural area or towns with populations of 10,000 or less. Check to see if your area is located within an eligible addresses. The area must have a median household income below the poverty line or less than 80 percent of the statewide non-metropolitan median household income.
This grant has the following terms:
- Grants may not be used to pay for work already completed.
- For projects eligible under several programs, the amount of the pre-development or SEARCH grant will be subtracted from the total grant eligibility as determined in underwriting for the water or waste disposal project.
- These grants do not have to be paid back if the application for the USDA direct loan or loan/grant combination is not successful.
- Grants are based on demonstrated need and subject to the availability of funds.
- Partnerships with other federal, state and local entities are encouraged, and grants are awarded only when the applicant cannot afford to borrow the needed funds.
- The amount of the grant will be subtracted from the total grant eligibility if a USDA grant is awarded for part of the water or waste disposal project.
- At least 25% of the project cost must come from the applicant or third-party sources. In-kind donations do not count toward this minimum.
To learn more about the Water & Waste Disposal Predevelopment Planning Grant and how to apply, please contact your local RD office. Applications are currently open year-round.