Community Facilities Direct Loan and Grant Program - FY 2025
| Agency: | U.S. Department of Agriculture |
|---|---|
| Office: | Rural Development (RD) |
| Multipart Grant: | No |
| Next Due: | Rolling |
|---|---|
| Solicitation Date: | Rolling |
| Match Required: | Yes |
| Match Type: | Unspecified |
| Actual Funds: | Unspecified |
Summary:
The purpose of this program is to provide affordable funding to develop essential community facilities in rural areas. Projects supported through this program must demonstrate substantial community support, and facilities must serve the rural area where they are or will be located. Rural areas must have no more than 20,000 residents according to the latest U.S. Census data, which can be found online at www.census.gov.
For the purposes of this program, 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. 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
Priority will be given to projects that:
- Serve communities with populations of 5,500 or fewer
- Serve low-income communities having a median household income below 80 percent of the state non-metropolitan median household income
Funds may be used to purchase, construct, and/or improve essential community facilities; purchase equipment; and pay for related project expenses.
The program will provide awards via direct loans, limited grants, and a combination of loans and grants.
Eligibility Notes:
Eligible applicants are:
- Public bodies
- Community-based nonprofit corporations
- Federally recognized tribes
Facilities supported through this program must serve the rural area where they are or will be located. Rural areas include cities, villages, townships, and towns, including federally recognized tribal lands, with no more than 20,000 residents according to the latest U.S. Census data, which can be found online at www.census.gov.
Additionally, in order to be eligible, applicants must:
- Have the legal authority to borrow money, obtain security, and repay loans; and to construct, operate, and maintain the proposed facilities
- Be unable to finance projects from their own resources and/or through commercial credit at reasonable rates and terms
Priority will be given to projects that:
- Serve communities with populations of 5,500 or fewer
- Serve low-income communities having a median household income below 80 percent of the state non-metropolitan median household income
Previous award recipients include:
- North San Joaquin Water Conservation District (CA)
- Sunbury Municipal Authority (PA)
- Town of Goshen (VA)
- Fallon Paiute Shoshone Tribe (NV)
- Allen Parish Hospital Service District #3 (LA)
Refer to the Award file for additional information regarding previous award recipients.
Eligible Applicants:
Local GovernmentNative American Tribe
Non Profits
Schools/School Districts
State Government
Application Notes:
Applications are accepted on a rolling basis.
To initiate the application process, applicants must contact the appropriate local office listed online at www.rd.usda.gov/contact-us/state-offices.
Information about the application submission method will be provided by the funding agency after contact is established.
The following are required in order to submit an application:
- Unique Entity Identifier (UEI) number
- SAM (System for Award Management) registration
Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam.
Refer to the NOFA file for additional application information.
| Match Required: | Yes |
|---|---|
| Match Type: | Unspecified |
| Actual Funds: | Unspecified |
Match Notes:
There are no stated matching requirements for loans provided through this program; however, the maximum amount of project costs that grants provided through this program will cover is as follows:
- Maximum of 75 percent if:
- The project is located in a rural community having a population of 5,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 60 percent of the state non-metropolitan median household income
- Maximum of 55 percent if:
- The project is located in a rural community having a population of 12,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 70 percent of the state non-metropolitan median household income
- Maximum of 35 percent if:
- The project is located in a rural community having a population of 20,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 80 percent of the state non-metropolitan median household income
- Maximum of 15 percent if grant funds are available, and if the project meets both of the following criteria:
- The project is located in a rural community having a population of 20,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 90 percent of the state non-metropolitan median household income
Funds may be combined with commercial financing to finance projects if all eligibility and feasibility requirements are met.
Funding Notes:
An unspecified amount of funding is available to support grants and low-interest direct loans through this program. Awards may be provided as combinations of grants and loans. Grant assistance is provided on a graduated scale, with smaller communities having the lowest median household income being eligible for projects with a higher proportion of grant funds. Grant assistance is limited to the following percentages of eligible project costs:
- Maximum of 75 percent if:
- The project is located in a rural community having a population of 5,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 60 percent of the state non-metropolitan median household income
- Maximum of 55 percent if:
- The project is located in a rural community having a population of 12,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 70 percent of the state non-metropolitan median household income
- Maximum of 35 percent if:
- The project is located in a rural community having a population of 20,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 80 percent of the state non-metropolitan median household income
- Maximum of 15 percent if grant funds are available, and if the project meets both of the following criteria:
- The project is located in a rural community having a population of 20,000 or fewer
- The median household income of the service area is below the higher of the poverty line or 90 percent of the state non-metropolitan median household income
Funds may be combined with commercial financing to finance projects if all eligibility and feasibility requirements are met.
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. There will be no prepayment penalties. Interest rates will be set by the funding agency and are determined by the median household income of the service area and the population of the community. Once the loan is approved, the interest rate is fixed for the entire term of the loan. Current interest rates, when available, can be found online at www.rd.usda.gov.
Funding may not be used for private, commercial, or business undertakings.
In August 2023, 14 grants ranging from $2,017 to $1.5 million and 4 loans ranging from $51,000 to $8,787,000 were distributed through this program. In January 2022, a total of $1 billion was distributed to support 731 projects. Refer to the Award file for details.
Contacts:
(See Contact Notes)
Agency Address
U.S. Department of Agriculture
Rural Development (RD)
1400 Independence Ave., SW
Washington, D.C. 20250
Contact Notes:
Questions should be directed to the appropriate local office listed online at www.rd.usda.gov/contact-us/state-offices.
To initiate the application process, applicants must contact the appropriate local office.
The agency address provided is for reference purposes only.
File Notes:
The NOFA file contains the solicitation for this program. The Award file contains information on previous award recipients.
| Project: | Buchanan County Health Center Hospital Expansion (13.4 Mb) |
|---|---|
| Applicant: | People's Memorial Hospital, dba Buchanan County Health Center |
| Summary: |
The purpose of this program is to provide affordable funding to develop essential community facilities in rural areas. Buchanan County Health Center requested a loan of $18,056,000 and provided a match of $8 million to help renovate the health center in order to accommodate its shift in focus to outpatient services. Funding was requested for a two-year period to expand its parking lot into two larger lots, construct a new clinic area for specialty physicians, and transform the existing specialty clinic space into rooms for minor procedures. |
Grant Keywords
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Arts & CultureCommunity Development
Education
Health, Prevention/Treatment
Libraries
Parks & Recreation
Law Enforcement
Rural Issues
Senior Citizens
Transportation
Fire/EMS