USDA doubles Revolving Fund Program funding limits
The U.S. Department of Agriculture (USDA) announced that it is increasing funding limits for loans financed under the Revolving Fund Program to support water and wastewater infrastructure projects in rural America.
This increase is in line with provisions in the Agriculture Improvement Act of 2018 (2018 Farm Bill), said Luis R. García, acting state director for Puerto Rico.
In a final rule, the USDA increased to $200,000 the maximum loan amount in the Revolving Fund Program, doubling the previous loan limit of $100,000.
This change “will help expand access to safe, reliable drinking water, and sanitary sewage treatment for households in rural communities. The Revolving Fund Program helps qualified nonprofit organizations create revolving loan funds to extend and improve water and waste disposal systems in rural areas,” the agency said.
The loans, which carry a 2% interest rate and a 40-year term. Last year, this type of funding has benefited several projects in Puerto Rico, including the Community Acqueducts Los Gómez in San Lorenzo, Pozo de Aguas Inc. in Caguas, Torito UNO in Cayey, and Corcovado in Añasco, the local agency confirmed.
The funds may be used for pre-development costs for water and wastewater treatment projects. Funds also may be used for small short-term capital improvement projects that are not part of regular operations and maintenance. Program recipients set the loan terms for the individual communities they serve, the USDA confirmed.