1. Short title This Act may be cited as the Rural Water Infrastructure Improvement Act of 2018 . 2. Water or waste disposal grants or direct or guaranteed loans (a) Grants Section 306(a)(2)(B) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a)(2)(B) ) is amended— (1) in clause (iii), by striking $100,000 each place it appears and inserting $200,000 ; and (2) in clause (vii), by striking 2018 and inserting 2023 . (b) Assistance for unserved and underserved rural communities Section 306(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a) ) is amended by adding at the end the following: (27) Assistance for unserved and underserved rural communities (A) Definition of unserved or underserved rural community In this paragraph, the term unserved or underserved rural community means a rural area that, as determined by the Secretary, lacks the technical, financial, organizational, and managerial capacity to adequately operate, maintain, and effectively serve the population of the rural area. (B) Water and waste disposal direct loans The Secretary may make water and waste disposal direct loans under paragraph (1) to eligible entities described in subparagraph (C) at the interest rate applicable to areas where the median family income is below the poverty line, as determined under section 307(a)(3)(A), for projects for unserved or underserved rural communities. (C) Eligible entities To be eligible to receive a direct loan under subparagraph (B), an applicant shall be a contiguous or local utility outside of the unserved or underserved rural community to be served by the project funded by the direct loan that, as determined by the Secretary— (i) has a demonstrated experience and capacity in delivering water programs or wastewater programs under this Act; (ii) demonstrates the capacity to provide service to the applicable unserved or underserved rural community