FINANCING SOLUTIONS FOR WATER & WASTEWATER PROJECTS IN RURAL COMMUNITIES
Water System Loans for Rural Communities
What it is
Communities Unlimited makes water system loans directly to rural water and wastewater systems across seven states. Interim financing, construction loans, equipment loans, and grant matching funds, structured around what your system can repay. We work alongside your board and operators through the whole project, not just the closing.
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Chris Ranniger
"Communities Unlimited provided the fastest, most helpful support we’ve ever had. They bent over backward to help us, and we’re very grateful.”
— Mayor Leanna West, Trent, TX
Our water and wastewater lending is built around compliance: meeting public drinking water and wastewater standards, protecting public health, improving system security, and extending service to new customers.
This not only protects public health and improves system security, but also enables communities to expand services to new customers and enhance service quality for current users.
We offer flexible financing options—including interim financing, construction loans, equipment loans, and grant matching funds—that are designed to meet the unique needs of rural water and wastewater systems. Strong infrastructure is what lets rural communities and local economies grow.
Eligibility
Nonprofit corporations and local government entities may apply if you:
- Serve a significant amount of low-income customers
- Have a population less than 20,000
- Have the ability to repay the loan with system revenues
or
- have evidence of permanent take out financing and will accept no-cost technical assistance if it improves your ability to repay.
Program & Loan Terms
- Up to $750,000
- 1% Origination Fee
- Up to 15 year terms
Other funding for water and wastewater systems
Most rural water projects are paid for with a mix of grants and low-interest loans. Here is where a Communities Unlimited water system loan fits alongside the larger programs.
USDA Rural Development, Water & Waste Disposal Loan & Grant Program. Long-term, low-interest loans and grants for rural communities under 10,000. Strong for major capital projects, though the application and closing timeline is long. Our interim financing lets work begin before an award closes.
State Revolving Funds (Drinking Water and Clean Water). State-run, below-market loans for water and wastewater infrastructure. Well suited to large, planned projects. Our grant matching funds can cover the local match, and we can finance smaller projects that fall below SRF thresholds.
State agency and rural water association programs. Most states run their own grant, loan, and emergency programs. We work alongside your board and operators to find them and line them up.
Communities Unlimited is often the better fit for smaller loans, interim needs, and the gaps those programs leave.
Related guides
Three guides that go deeper on the parts of a funding package that most often stall a project:
- How to fund a rural water system upgrade. Where the money comes from, in what order to approach it, and the audit and rate work that unlocks each source.
- Grant matching funds. What to do when you have won an award but cannot bring the local match.
- Interim financing for a water project. How to begin work before a grant or State Revolving Fund award pays out.
Water system loans: common questions
A water system loan is financing a water or wastewater utility uses to repair, upgrade, or build infrastructure such as distribution lines, wells, storage tanks, treatment plants, and lift stations. Communities Unlimited lends directly to rural systems across seven Southern states through interim financing, construction loans, equipment loans, and grant matching funds.
Nonprofit corporations and local government entities may apply if they serve a significant number of low-income customers, have a population under 20,000, and can repay the loan from system revenues. Systems may also qualify with evidence of permanent take-out financing, and by accepting no-cost technical assistance that improves their ability to repay.
Yes. Small systems are exactly who Communities Unlimited was built to work alongside, including systems that have been turned down elsewhere or told their project is too small.
Communities Unlimited lends up to $750,000 for rural water and wastewater projects, with terms up to 15 years and a 1% origination fee.
Interim financing while a system waits on another funding source, construction loans for building and upgrading infrastructure, equipment loans, and grant matching funds that cover the match a grant program requires.
Yes. Interim financing lets a project move forward before a USDA or State Revolving Fund award closes, and grant matching funds can cover the local match those programs require.
USDA Rural Development serves rural communities under 10,000 with long-term loans and grants. State Revolving Funds are state-run, below-market loans for water and wastewater infrastructure. Both suit large, planned projects with long timelines. Communities Unlimited financing is often the better fit for smaller loans, interim needs, and the match those programs require.
Arkansas, Oklahoma, Tennessee, Louisiana, Mississippi, Texas, and Alabama. Not in one of those states? We would love to refer you to one of our partners and can point you to the right source.
In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating based on race, color, national origin, sex, age, or disability. Submit a complaint of discrimination, by mail to U.S. Department of the Treasury, Office of Civil Rights and Equal Employment Opportunity , 1500 Pennsylvania Ave. N.W., Washington, D.C. 20220, (202) 622-1160 (phone), (202) 622-0367 (fax), or email crcomplaints@treasury.gov (email).
Reasonable Modifications for Individuals with Disabilities
Reasonable modifications may be requested by emailing info@communitiesu.org or calling (479) 443-2700, or persons with speech or hearing impairment may call toll-free 1-800-877-0996 for service in English and Spanish.
