Rural Economic Development Loans and Grants

The Rural Economic Development Loan and Grant Programs provide funding for rural projects through local utility organizations. USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility then is responsible for repayment to USDA. USDA provides grants to local utility organizations which use the funding to establish Revolving Loan Funds (RLF). Loans are made from the revolving loan funds to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to USDA.

To receive funding (which will be forwarded to selected eligible projects), an entity must be: A former Rural Utilities Service borrower who borrowed, repaid or pre-paid an insured, direct or guaranteed loan. Nonprofit utilities that are eligible to receive assistance from the Rural Development Electric or Telecommunication Programs. Current Rural Development Electric or Telecommunication Programs borrowers. Electric and telephone utilities that have current loans with the Rural Utilities Service (RUS), Rural Telephone Bank loans, or guarantees outstanding and are not delinquent on any Federal debt or in bankruptcy proceedings.

See 7 CFR 4280.42.

This program requires the grantee to provide supplemental funds in the amount of 20 percent of the RBS application amounts.

Fiscal year 2025: This Rural Development assistance will be used to provide financing for the construction of a 12,600 sq. ft. Fire/EMS substation in the small, unincorporated community of By. This project will expand and improve emergency medical and safety services and decrease response times by providing a permanent space dedicated to providing critical emergency services in this historically underserved population in a medically underserved rural tribal area. This Rural Development investment will fund a pass-through loan for a project will assist in financing the purchase of equipment to increase production capacity at their soybean processing facility. This project will create 1 new job. the purpose of this funding program is to provide rural economic development.