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.

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

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.

What are the terms?

Funding is provided through a competitive process.

Direct Loan:

• Loan repayment terms may not be longer than the useful life of the facility, state statutes, the applicants authority, or a maximum of 40 years, whichever is less

Are there 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
• Facilities must serve rural area where they are/will be located
• Project must demonstrate substantial community support
• Environmental review must be completed/acceptable

What governs this program?

• Direct Loans: 7 CFR Part 1942, Subpart A