Opportunity Information: Apply for RDRUS 20 RFP

The Revolving Fund Program (Funding Opportunity Number: RDRUS 20 RFP) is a discretionary grant offered by the U.S. Department of Agriculture (USDA) through its Utilities Programs. The purpose of the program is to help eligible nonprofit organizations establish a revolving loan fund (often called an RLF) that can then be used to finance projects tied to rural water and waste disposal systems. In practical terms, the grant helps a qualified nonprofit set up a pool of capital that it can lend out for the extension, repair, upgrade, or improvement of water and wastewater infrastructure in rural communities. As loans are repaid back into the fund, the money can be re-lent for additional projects, which is the core idea behind a "revolving" fund.

Funding is provided in the form of a grant, and the program sits at the intersection of several public-purpose areas, including agriculture, community development, environment, and health. The infrastructure supported through the loans is closely connected to public health and environmental outcomes, since safe drinking water and reliable wastewater treatment are foundational services for rural quality of life, economic stability, and compliance with water quality standards.

Eligibility is limited to nonprofits with IRS-recognized 501(c)(3) status, excluding institutions of higher education. That means the applicant must be a qualifying charitable nonprofit (not a university or college) capable of administering a loan program. The intent is that the nonprofit acts as the fund manager, making and servicing loans to support eligible water and waste disposal system improvements in rural areas. The opportunity is listed under CFDA number 10.864, which corresponds to USDA rural utilities water-related assistance programming.

The opportunity was created on March 12, 2020, with an original closing date of June 12, 2020. The posting indicated an expectation of about four awards. The listed award ceiling is shown as 0, which typically signals that the maximum award amount was not specified in the summarized record and would normally require checking the full notice or program guidance for any caps, typical award sizes, matching expectations, or other financial constraints.

Overall, this grant opportunity is designed to multiply the impact of federal dollars by enabling a nonprofit to capitalize a lending mechanism rather than funding only one-time construction. By creating a revolving loan fund, the program aims to provide ongoing access to financing for rural communities and local water and wastewater providers that need to extend service, modernize aging systems, and improve reliability and safety over time.

  • The Department of Agriculture, Utilities Programs in the agriculture, community development, environment, health 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.
  • This funding opportunity was created on Mar 12, 2020.
  • Applicants must submit their applications by Jun 12, 2020. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • The number of recipients for this funding is limited to 4 candidate(s).
  • Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education.
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Revolving Fund Program (RDRUS 20 RFP) - Frequently Asked Questions

1) What is the Revolving Fund Program (RDRUS 20 RFP)?

The Revolving Fund Program (Funding Opportunity Number: RDRUS 20 RFP) is a discretionary grant opportunity offered by the U.S. Department of Agriculture (USDA) through its Utilities Programs. It is designed to help eligible nonprofit organizations establish a revolving loan fund (RLF) that finances rural water and waste disposal system projects.

2) Who is the federal awarding agency for this opportunity?

The awarding agency is the U.S. Department of Agriculture (USDA), administered through USDA Utilities Programs.

3) What is the main purpose of the grant?

The purpose is to provide grant funding to eligible nonprofits so they can create and operate a revolving loan fund. That fund is then used to make loans for the extension, repair, upgrade, or improvement of rural water and wastewater infrastructure.

4) What does "revolving loan fund" mean in this program?

A revolving loan fund is a pool of capital that a nonprofit lends out to support eligible infrastructure projects. As borrowers repay their loans, the repaid money returns to the fund and can be loaned out again for new projects. This re-lending cycle is what makes the fund "revolving."

5) What types of projects can the revolving loan fund finance?

Based on the summary provided, the loans from the revolving fund can support projects tied to rural water and waste disposal systems, including the extension, repair, upgrade, or improvement of water and wastewater infrastructure in rural communities.

6) Is this funding a loan or a grant?

The USDA provides funding to the eligible nonprofit in the form of a grant. The nonprofit then uses that grant-funded capital to operate a loan program (the revolving loan fund) for eligible rural water and wastewater projects.

7) Who can apply for this grant opportunity?

Eligibility is limited to nonprofit organizations with IRS-recognized 501(c)(3) status, excluding institutions of higher education. In other words, the applicant must be a qualifying charitable nonprofit and cannot be a college or university.

8) Are institutions of higher education eligible to apply?

No. The eligibility description explicitly excludes institutions of higher education, even if they otherwise have nonprofit characteristics.

9) What role does the nonprofit organization play after receiving the grant?

The nonprofit is intended to act as the revolving loan fund manager. This includes establishing the fund and making and servicing loans that support eligible water and waste disposal system improvements in rural areas.

10) What communities are intended to benefit from this program?

The program is aimed at rural communities, specifically where water and wastewater systems need financing to extend service, modernize aging infrastructure, and improve reliability and safety over time.

11) What is meant by "rural water and waste disposal systems" in the summary?

The summary links the program to water and wastewater infrastructure that supports safe drinking water and reliable wastewater treatment in rural areas. It focuses on systems and projects that affect public health and environmental outcomes.

12) What public-purpose areas does the program connect to?

The opportunity is described as sitting at the intersection of agriculture, community development, environment, and health, reflecting the broad benefits of safe water and effective wastewater treatment for rural quality of life and compliance with water quality standards.

13) What is the CFDA number for this program and what does it indicate?

The opportunity is listed under CFDA number 10.864, which corresponds to USDA rural utilities water-related assistance programming.

14) When was this funding opportunity created and when did it close?

The opportunity was created on March 12, 2020, and it had an original closing date of June 12, 2020.

15) How many awards were expected under this posting?

The posting indicated an expectation of about four awards.

16) Is there a maximum award amount (award ceiling) listed?

The summarized record shows an award ceiling of 0, which typically indicates that the maximum award amount was not specified in that summary and would normally require reviewing the full notice or program guidance to confirm any caps or typical award sizes.

17) Why does the program use a revolving loan fund instead of paying for one-time construction?

The program is designed to multiply the impact of federal dollars by capitalizing a lending mechanism. Because loan repayments replenish the fund, the same pool of money can support multiple rounds of projects over time rather than being spent once.

18) What kinds of long-term outcomes is the program trying to support?

By improving and expanding rural water and wastewater infrastructure, the program supports long-term outcomes related to public health, environmental protection, economic stability, and reliable essential services.

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Rural Decentralized Water System Grant Program Apply for RDRUS 25 DWS

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