Small and Rural Communities Wastewater Infrastructure Act

Small and Rural Communities Wastewater Infrastructure Act - Amends the Federal Water Pollution Control Act (commonly known as the Clean Water Act) to allocate at least 5%, 10%, or 15% of funds received by a state in capitalization grants to provide assistance to publicly owned treatment works that serve populations of 5,000 or fewer persons, 5,001 to 20,000 persons, or 20,001 to 50,000 persons, respectively.

Authorizes a state to use funds received in capitalization grants for making preloans (financial assistance from the state's water pollution control revolving loan fund) to municipalities or intermunicipal, interstate, or state agencies for costs incurred in connection with project development, environmental studies, legal and administrative expenses, and project design for construction of a public owned treatment works that will regularly serve 50,000 or fewer persons. Prohibits a preloan from being used for costs related to land acquisition.

Authorizes a state agency to provide additional assistance in connection with a state water pollution control revolving loan if a project is to benefit a disadvantaged community with a population of 50,000 persons or fewer by: (1) forgiving all or a portion of the principal of the loan; (2) not requiring or reducing interest to be paid in connection with the loan; and (3) extending the loan repayment period to not to exceed 30 years.

Requires the Administrator of the Environmental Protection Agency (EPA) to identify, implement, and make further recommendations regarding ways to expedite and improve the application and review process for obtaining financing from a state water pollution control revolving loan fund.