There are a number State and Federal grant and loan opportunities which provide funding for infrastructure projects. Grant and low-interest loan programs can help reduce the financial burden of large construction projects. Each funding agency has specific requirements and some opportunities will fit a project better than others.

Below is a list of potential funding opportunities for the Thompson Falls wastewater project. The City will not necessary apply to all of these funding sources. The City will determine which funding sources are most appropriate once the PER is complete.

Treasure State Endowment Program (TSEP)

TSEP is a state funded grant program administered by the Montana Department of Commerce (MDOC). TSEP provides financial assistance to local governments for infrastructure improvements. Grants can be obtained from TSEP for up to $500,000 if the projected user rates are less than 125% of the target rate,  $625,000 if projected user rates are between 125% and 150% of the target rate, and up to $750,000 if the projected user rates are over 150% of the target rate. TSEP grant recipients are required to match the grant dollar for dollar, but the match may come from a variety of sources including other grants, loans, or cash contributions. Water projects are eligible for TSEP funds.

Renewable Resource Grant and Loan Program (RRGL)

Funded through interest accrued on the Resource Indemnity Trust Fund and the sale or Coal Severance Tax Bonds, RRGL is a state program administered by the Montana Department of Natural Resources and Conservation (DNRC).  RRGL’s primary purpose is to conserve, manage, develop, or protect Montana’s renewable resources.  Grants of up $125,000 are available for projects that meet one of more of these objectives.

State Revolving Fund (SRF)

SRF provides low-interest loan funds for solid waste projects through the Water Pollution Control State Revolving Fund (WPCSRF). The SRF program is administered by the Montana Department of Environmental Quality. Current loan terms include an interest rate of 2.5% for a 20-year period.

Community Development Block Grant (CDBG)

The Montana Department of Commerce administers the federally funded CDBG program. The primary purpose of the CDBG Program is to benefit low to moderate-income (LMI) families. To be eligible for CDBG funding an applicant must have an LMI of 51% or greater.

The CDBG grant funds can be applied for in an amount of up to $450,000 with a limit of $15,000 per LMI household, so a community needs 30 LMI households to apply for the maximum grant funds.  The use of CDBG funds requires a 25% local match that can be provided through cash funds, loans, or a combination thereof.

USDA Rural Development (RD)

RD provides grant and loan funding to districts, municipalities and counties for infrastructure projects that improve the quality of life and promote economic development in Rural America. Communities with populations less than 10,000 are eligible to apply; however, RD gives the highest priority to projects that serve rural areas with populations equal to or less than 1,000.