Community Facilities Direct Loan + Grant Program

Administered By: U.S. Department of Agriculture (USDA) Rural Development

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.

Qualifying Projects: Examples of essential community facilities include:

• Health care facilities such as hospitals, medical clinics, dental clinics, nursing homes or assisted living facilities

• Public facilities such as town halls, courthouses, airport hangars or street improvements

• Community support services such as child care centers, community centers, fairgrounds or transitional housing

• Public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles or equipment

• Educational services such as museums, libraries or private schools

• Utility services such as telemedicine or distance learning equipment

• Local food systems such as community gardens, food pantries, community kitchens, food banks, food hubs or greenhouses

Funding Priorities: Priority point system based on population, median household income

• Small communities with a population of 5,500 or less

• Low-income communities having a median household income below 80% of the state nonmetropolitan median household income.

Administrative Considerations: Applicants must have legal authority to borrow money, obtain security, repay loans, construct, operate, and maintain the proposed facilities.

• Applicants must be unable to finance the project from their own resources and/or through commercial credit at reasonable rates and terms

• Facilities must serve rural area where they are/will be located

• Project must demonstrate substantial community support

• Environmental review must be completed/acceptable