---
kind: "section"
citation: "7 C.F.R. § 1783.12"
title: "7"
number: "1783.12"
heading: "What are eligible uses of grant proceeds?"
url: "https://uscodex.org/cfr/7/1783.12"
---

# §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.

## Notes

### Authority

Authority: 7 U.S.C. 1926 (a)(2)(B).

### Source

Source: 69 FR 59772, Oct. 6, 2004, unless otherwise noted.