SERCAP Loan Fund Program

SERCAP's Loan Fund provides low-interest loans to low-income rural communities for predevelopment costs, system upgrades and new construction of water and wastewater services and facilities. Loans are also available for housing and community development. The terms of these loans are very attractive. Loan amounts range from $1,000 to $150,000. Interest rates start at 4% and range up to a maximum of 7% using a sliding scale point system based on need. Repayment periods are between one and ten years. The Loan Fund is a "Program Related Investment" of the Ford Foundation which provided a $500,000 loan in continuing support for this program. An additional $2 million loan was obtained from Rural Development to capitalize the loan fund. The total capital of the program is $2.5 million. In June 2000, SERCAP received certification as a Community Development Financial Institute (CDFI) by the U.S. Department of the Treasury and continues to work with the department to receive additional funding to increase the loan fund capitalization.

The household water well system loan program is designed to assist low- to moderate-income individuals needing loans to construct, refurbish and service their household well systems. The purpose of the program is to target loans to the significant numbers of homeowners in the seven states whose geographically isolated households lack water service, but for whom it is not feasible to be connected to new or existing community water systems.

Loan applicants must own and occupy the home for which they are applying for a water well loan. The water well system being funded may not be associated with the construction of a new dwelling. Also the water well system being funded by the loan may not be used to substitute for water service available from collective water systems. The home using the water well system must be located in a rural area, and the combined household income for an individual applying for a loan should not be more than 100 percent of the median non-metropolitan household income for the state. Priority will be given to applicants who are disabled, elderly or who have minor children.

The loans have an interest rate of 1% and a twenty-year repayment term. A maximum of $11,000 per household may be borrowed under this program. Loan application forms are available on this website under Publications and Forms.

For more information about the Loan Fund programs, contact Michael Haas at


Download Loan Fund applications:

Individual Programs Application - For IPR, Loans, and Miscellaneous Grants - PDF format (1.5MB)
Loan Fund Water/Wasterwater Application - PDF format (225KB)
Community Facility Application - PDF format (400KB)


Links to more forms and publications are found under the Resources Tab at the top of this page.


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