Community Facilities Loans and Grants

To provide affordable funding either through loans or grants to develop essential community facility projects in rural communities to nonprofits, public bodies, and federally recognized tribes. Ensure program is delivered efficiently, effectively and with integrity. Ensure all rural residents have equitable access to program funding with specific set asides for persistent poverty counties, to help rural communities build robust and sustainable economies.

City, county, and other public bodies; community-based non-profit corporations; and Federally-recognized Tribes. Eligible applicants must: (1) operate on a not-for-profit basis; (2) have or will have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service and for obtaining, giving security for, and repaying the loan; and (3) are unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms. Assistance is authorized for eligible applicants in rural areas of the States, Puerto Rico, the Virgin Islands, Guam, American Samoa, the commonwealth of the Northern Mariana Islands, the Marshall Islands, the Republic of Palaw, and the Federated States of Micronesia.

Projects are selected for funding giving due consideration to State development strategies, serving the largest number of low income rural residents, and priority recommendations. Priority for funding will be given to those projects that will enhance public safety such as fire, police, rescue and ambulance services, and projects for health care facilities.

Matching funds are required and may be used in connection with the funds provided from the applicant or other sources. The percentage of matching funds for grants ranges from 25% of the total project cost to 85% of the total project cost. The required applicant contribution for loans will vary on a case-by-case basis. Funds are allocated to States based upon rural population, number of households below the poverty level, and rural unemployment. The statistical factor for eligibility is cities, towns or incorporated areas under 20,000 population for direct and guaranteed loans and 20,000 population for grants. The source is "Latest Decennial Census." Grants are limited to a maximum of 75 percent of project cost.