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CoBank/TRWA Loan Program
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Financing Solutions for Rural Water Systems

Specially negotiated terms for TRWA members

TRWA has partnered with CoBank to provide financing options to help meet the needs of Texas’ rural water and wastewater utilities. These options are the best fit for water supply corporations and districts, but all rural utilities are eligible.  See below for descriptions on what’s available:


For more information, contact Hunter Hook at or call 303-793-2242.


USDA Interim (Construction) Loans:

One of the conditions associated with certain Direct Loans provided by USDA Rural Development is finding a third party to provide interim funding. A TRWA interim loan, through CoBank, is a way to meet that condition. The loan is structured to match the timing of your project (typically up to 3 years). Pay interest monthly only on the amount used while preserving the 40-year term of the USDA loan. A typical interim loan from CoBank comes with an interest rate of one month LIBOR ( + 2% and an upfront fee of $2,500. CoBank has agreed to reduce the interest rate to LIBOR + 1.75% (saving 0.25%) and waiving the $2,500 fee for all TRWA members. CoBank is the leading provider of interim loans for water and wastewater utilities offering our expertise, negotiated lower pricing and quick approval process to make this a fantastic option for Texas systems. 


USDA Guaranteed Loans:

USDA Guaranteed Loans offer the opportunity to work with USDA Rural Development through a third-party lender. With a TRWA USDA Guaranteed Loan, through CoBank, you’ll get all the expertise that comes with the nation’s leading provider of USDA Guaranteed Loans with an interest rate that is 0.25% lower than available to non-Texas utilities. Additionally, CoBank charges no fees (there is a 1% fee charged by USDA Rural Development for the Guarantee) and your application qualifies for expedited review. 


TRWA Line of Credit:

A line of credit is a great way to backstop your utility’s rainy day fund, kick-start small projects or maintain liquidity on demand. Emergencies happen and it’s important to have enough money available to deal with them when they do. A TRWA Line of Credit, through CoBank, comes with a standard interest rate of one month LIBOR ( + 1.75%. You only pay interest on the portion used; if you don’t use it, there are no costs. Additionally, there are no fees to set up the Line of Credit and your application qualifies for expedited review.


TRWA Term Loan:

Sometimes a small or mid-sized project comes up that needs to be dealt with immediately. TRWA has worked with CoBank to provide your solution. With flexible terms and a fixed rate for up to 30 years, a TRWA Term Loan is the right funding choice for a project where it doesn’t make sense to use one of the more traditional financing products. The Interest rate on a TRWA Term Loan is 0.25% lower than the rate available to the rest of the country and there are no fees charged by CoBank or TRWA. Additionally, your application qualifies for expedited review, which means you’ll have your money a lot quicker than you expected.


For more information, contact Hunter Hook at or call 303-793-2242.

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