OVERVIEW: The U.S. Department of Agriculture – Rural Development provides loans, guaranteed loans and grants to develop essential community facilities for public use in rural areas. These facilities include schools, libraries, childcare, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation. For the direct loan program there are three levels of interest rates available (poverty, intermediate, and market) each on a fixed basis. The poverty rate is set at 4.5%. The other two are adjusted quarterly based upon the market rates. Overall, USDA guarantees up to 90% of any loss of principal or interest. The guarantee fee is 1% of the guaranteed portion of the loan and is paid by the Lender of Record, or may be passed on to the borrower.
TIMETABLE: Rural communities in need of public facilities should contact their USDA Rural Development field office about deadlines.
APPLICATION PROCESS: Applications are handled by USDA Rural Development field offices. Rural Development staff will be glad to discuss a community’s needs and the services available. Field staff can provide application materials and current program information, and assist in the preparation of an application.
TAGS: public facilities, structural, funding, rural