USDA Community Facilities Direct Loan & Grant Program

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.

What does this program do?
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.

What is an eligible area?
Rural areas including 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 are eligible for this program.

How may funds be used?
Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses.

What are the 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

To learn more and to apply, visit the Community Facilities Direct Loan & Grant Program webpage

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