7 CFR § 1783.12 - What are eligible uses of grant proceeds?

---
identifier: "/us/cfr/t7/s1783.12"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1783.12 - What are eligible uses of grant proceeds?"
title_number: 7
title_name: "Agriculture"
section_number: "1783.12"
section_name: "What are eligible uses of grant proceeds?"
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1783"
part_name: "REVOLVING FUNDS FOR FINANCING WATER AND WASTEWATER PROJECTS (REVOLVING FUND PROGRAM)"
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. 1926 (a)(2)(B)."
regulatory_source: "69 FR 59772, Oct. 6, 2004, unless otherwise noted."
cfr_part: "1783"
---


# 1783.12 What are eligible uses of grant proceeds?

(a) Grant proceeds shall be used solely for the purpose of establishing the revolving loan fund to provide loans to eligible entities for:

(1) Pre-development costs associated with proposed water and wastewater projects or with existing water and wastewater systems, and

(2) Short-term costs incurred for replacement equipment, small-scale extension of services, or other small capital projects that are not part of the regular operations and maintenance activities of existing water and wastewater systems.

(b) A grant recipient may not use grant funds in any manner inconsistent with the terms of the grant agreement.