Sec. 6403. Zero and low interest loans for distressed water systems
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Section 306(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a) ) is amended by inserting after paragraph
(22)the following: To promote the long-term sustainability and financial viability of eligible rural community waste disposal and water facilities as described in subparagraph (B), for any entity described in subparagraph (C), the Secretary may— make a zero percent interest loan or a 1 percent interest loan pursuant to paragraph (1); forgive the principal or interest, or modify any term or condition of a new or existing loan made pursuant to paragraph (1); refinance all or part of any other loan made for an eligible purpose under paragraph
(1)of this subsection or section 306C; or waive any fee required to insure or guarantee a loan pursuant to paragraph
(1)or (24). To promote the long-term sustainability and financial viability of the services provided by eligible entities, the Secretary shall— provide assistance to an eligible entity for the purpose of— ensuring the entity has necessary resources to maintain public health, safety, or order; addressing financial hardships of the eligible entity, its customers, and the community it serves; improving the financial stability of the eligible entity, including changes to— operational practices; revenue enhancements; policy revisions; and contract services; and supporting a partnership, regionalization, or consolidation of the entity with another water system; and require an applicant to— receive financial planning assistance and prepare a long-term financial plan; or partner, regionalize, or consolidate with another water system. An entity shall be eligible for assistance under this paragraph if the entity— is a rural water, wastewater, or wastewater disposal system with respect to which assistance may be provided under a water or wastewater, or waste disposal program under this subsection or section 306A, 306C, or 306D, and is— located in a socially disadvantaged community, a persistent poverty county, colonia, or distressed tribal area, as determined by the Secretary; or facing an economic hardship as defined by the Secretary. An entity eligible under paragraph
(1)or
(2)of subsection
(a)may designate a water and wastewater utility provider to apply for a loan under this paragraph and carry out the loan application on behalf of the eligible entity. The Secretary shall evaluate such a loan application on the basis of the needs of the eligible entity and the beneficiaries of the eligible entity rather than the needs of the applicant water and wastewater utility provider. A water and wastewater utility provider to whom a loan is made under this paragraph on the basis of an application submitted on behalf of an eligible entity may use the loan only for the benefit of the residents of the eligible area for which the loan is provided. .
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Sec. 6403
Zero and low interest loans for distressed water systems
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