COMMUNITY FACILITIES DIRECT LOAN & GRANT
When available, grant funds are provided on a graduated scale at 15%, 35%, 55%, or 75% of eligible projects costs based on population size and median household income of the proposed service area.
This program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.
Funds can be used to purchase, construct, and/or improve essential community facilities, purchase equipment and pay related project expenses.
ELIGIBILE ENTITIES
Public bodies
Community-based nonprofit corporations
Federally recognized tribes
Must be in a rural area with no more than 20,000 residents.
PROGRAM REQUIREMENTS
Deadline: No Deadline. Grant funds may or may not be available. Both grants and direct loan is awarded through a competitive process.
Matching Requirement and Loan Terms: Yes, the maximum grant is 75% of projects costs (requiring 25% match).
Loan repayment terms may not be longer than the useful life of the facility, state statutes, the applicant’s authority, or a maximum of 40 years, whichever is less. Interest rate is fixed once approved. Contact USDA for current rates.