USDA COMMUNITY FACILITIES LOAN

USDA COMMUNITY
FACILITIES LOAN

The Community Facilities Loan Program offers direct loans, loan guarantees and grants to develop or improve essential public services and facilities in communities across rural America.

Eligible Applicants

  • Business and Real Estate acquisitions, construction, conversion, expansion, repair, modernization or development.

  • Purchase of equipment, machinery, or inventory.

  • Start-up costs and working capital.

  • Refinancing for viable projects.

  • Public Bodies, Non-Profits and
    Federally-recognized tribes

  • Communities with less than 20,000 residents

Essential Community Facilities

  • Acquire existing real estate

  • Construct, expand, renovate or improve facilities

  • Purchase vehicles and major equipment

  • Associated project expenses (i.e. legal fees,
    interest expense)

  • Refinancing when less than 50% of the total
    project cost

Eligible Purposes

ADDITIONAL REQUIREMENTS

  • 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

  • Tax exempt financing is not eligible for this program

  • Lender responsible for determining credit quality and economic feasibility of proposed loan;
    adequacy of equity, cash flow, security, history and management capabilities

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

  • Project must demonstrate substantial community support

  • Environmental review must be completed/acceptable