Revolving Fund Program

The Revolving Fund Program, issued by the USDA Rural Utilities Service under solicitation number RDRUS-26-RFP, provides grants to qualified private, non-profit entities to establish and operate revolving funds that finance pre-development costs for proposed or existing water and wastewater systems, as well as short-term capital needs such as replacement equipment, small-scale service extensions, or other non-routine capital improvements. This program, governed by 7 CFR Part 1783 and aligned with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements outlined in 2 CFR Part 200, is designed to enhance rural water and wastewater infrastructure through sustainable loan mechanisms rather than direct construction funding. Applicants must demonstrate the capacity to manage and administer revolving loan funds, including developing clear loan application processes, borrower eligibility criteria, financial terms, delinquency policies, and sustainability plans for loan repayment and fund replenishment. Eligible entities must also meet mandatory compliance requirements including registration in the System for Award Management with an active Unique Entity Identifier and Taxpayer Identification Number, adherence to nonprocurement debarment and suspension rules under 2 CFR Part 417, and compliance with civil rights and nondiscrimination statutes inclusive of Title VI of the Civil Rights Act and Section 504 of the Rehabilitation Act. The solicitation, posted on June 1, 2026, with a submission deadline of July 3, 2026, is exclusively accepted through grants.gov and requires the submission of the Standard Form 424 family of documents along with supplementary materials such as evidence of legal existence, a list of board members and officers, and a comprehensive work plan. Applications are evaluated through a competitive scoring process weighted toward a well-structured work plan (40 points), applicant expertise in commercial lending (20 points), and a 50% or higher cash contribution from non-grant sources (20 points); additional points are awarded for clearly defined goals, evaluation methods, administrative efficiency, and discretionary criteria. A 20 percent cost-sharing requirement applies, and in-kind contributions are not eligible. The total funding available for FY 2026 is approximately $1,000,000, with an anticipated three awards, and performance periods run from October 1, 2026, through September 30, 2027. Grantees must submit annual financial reports and audits in accordance with 2 CFR Part 200 and comply with geospatial data standards,