7 CFR § 1776.5 - Eligibility to receive a DWS grant.

---
identifier: "/us/cfr/t7/s1776.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1776.5 - Eligibility to receive a DWS grant."
title_number: 7
title_name: "Agriculture"
section_number: "1776.5"
section_name: "Eligibility to receive a DWS grant."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1776"
part_name: "RURAL DECENTRALIZED WATER SYSTEMS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 1926e."
regulatory_source: "70 FR 28788, May 19, 2005, unless otherwise noted."
cfr_part: "1776"
---


# 1776.5 Eligibility to receive a DWS grant.

(a) The applicant must be a private organization.

(b) The applicant must be organized as a non-profit organization.

(c) The applicant must have legal capacity and lawful authority to perform the obligations of a grant recipient under this part. Example 1: If the organization is incorporated as a non-profit corporation, it must have corporate authority under state law and its corporate charter to engage in the practice of making loans to individuals. Example 2: if the organization is an unincorporated association, state law may prevent the organization from entering into binding contracts, such as a grant agreement.

(d) The applicant must have sufficient expertise and experience in lending and in promoting the safe and productive use of individually-owned decentralized water systems and ground water to assure the likelihood that the objectives of this part can be achieved.