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Water and Waste Disposal Loan and Grant Program.

USDA finances drinking water, sewer, solid-waste, and stormwater systems for eligible rural public and nonprofit applicants, primarily through long-term loans with need-based grants.

Offered byUSDA Rural Utilities Serviceverified 2026-07-10

Overview

What it does.

The City or another eligible public or nonprofit utility applicant can use this program for infrastructure serving Chester households and businesses. The direct applicant must own or operate the public-purpose system and demonstrate legal, financial, technical, and environmental feasibility.

Best for: Major rural water, sewer, solid-waste, or stormwater upgrades that support public health and economic development.

Eligibility

Who and what may qualify.

Eligible applicants

  • Most state and local governmental entities
  • Private nonprofit organizations
  • Federally recognized tribes

Applicants excluded by the source

  • Private businesses and individuals as direct applicants
  • Applicants able to obtain reasonable commercial credit
  • Projects without a public purpose

Eligible uses

  • Drinking-water sourcing, treatment, storage, and distribution
  • Sewer collection, treatment, and disposal
  • Solid-waste systems
  • Stormwater systems
  • Related land, engineering, legal, equipment, and construction-period costs

Uses excluded by the source

  • Projects outside rural areas and towns of 10,000 or fewer
  • Facilities without public purpose or financial sustainability

Application

How to start.

  1. Confirm the service area's eligibility with USDA Rural Development Illinois
  2. Develop preliminary engineering, environmental, financial, rate, and legal information
  3. Apply through RD Apply or the local USDA office

Timing: Applications are accepted year-round through RD Apply or local offices.

Planning notes

Limits to account for.

  • Service areas generally must have 10,000 or fewer people
  • Facilities must serve a public purpose and be financially sustainable
  • Engineering, environmental, legal, and rate analysis are substantial

USDA encourages coordination with other federal, state, local, private, and nonprofit infrastructure funding.

Evidence

Official sources.