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 Saco Water and Wastewater Improvements. The Town will not necessarily apply to all of these funding sources.
Montana Coal Endowment Program (MCEP)
MCEP is a state funded grant program administered by the Montana Department of Commerce (MDOC). MCEP provides financial assistance to local governments for infrastructure improvements. Grants can be obtained from MCEP 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. MCEP 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. The Town is eligible for an MCEP grant. Applications will be accepted in May 2026.
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. The Town is eligible for and is considering applying for a RRGL grant.
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. SRF funding will be considered with the funding package.
Emerging Contaminants (EC) Funding
The emerging contaminants funding which is being made available through the Bipartisan Infrastructure Law (BIL) is intended to reduce human exposure to perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other emerging contaminants through drinking water. By law, these funds must be distributed to communities entirely as forgivable loans or grants. States are not required to provide matching funds. The City of Malta has high manganese and is eligible for consideration of emerging contaminant funding. A needs survey has been submitted to DEQ for consideration of this funding.
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 $750,000 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. The Town is eligible for CDBG funding.
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. The Town is eligible for and considering applying for RD funding.