Small water utilities face unique challenges when they need to update their infrastructure. There are increasing demands for clean water to serve public health, but a small customer base and relatively fewer assets are available to pay for it. For six communities in central Illinois, those challenges led to cooperation, collaboration, and the construction of a new state-of-the-art facility to deliver clean water to more than 5,000 people with the help of Water Finance Exchange (WFX).
The locally-driven project started with the creation of the United Regional Water Cooperative (URWC) made up of the six communities. In 2020, URWC closed on a loan with the U.S. Department of Agriculture Rural Development (USDA-RD) for the $12.2 million project, including a 45% grant and a 1.5% interest on a fixed rate for 40 years. However, after URWC secured the loan, the project encountered regulatory and financial hurdles.
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