Community Facilities Direct Loan and Grant Program

Department of Agriculture, Rural Housing Service

Program Type:

Grant; Loan

Eligible Geography:



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. Funding is awarded through a competitive process.

Low interest loans and grants are available.

Grant assistance is provided in a tiered system according to the rural community's population and median household income. See the website for more details on tiers.

Eligible Recipients:

Anchor Institution; Local Government; State Government; Non-Profit Organization

Eligible Recipients Detail:

Libraries; Public Schools; Higher Educations Institutions; Hospitals; Public Safety Entities; State and Local Governments; Tribal Entities; Non-Profit Organizations

Eligible Purpose:

Anchor Institution Infrastructure

Eligible Purpose Detail:

This program provides affordable funding to develop essential community facilities in rural areas. Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses.

Examples of community facilities include: health care facilities; public facilities; community support services; public safety services; educational services; utilities; local food systems

Other Eligibility Criteria:

Rural areas with less than 20,000 residents according to the latest U.S. Census data

Funding Match/Terms:

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. Interest rates are set by Rural Development.

Grant matching rates are between 25% and 85% depending on the size of the community and median household income. See the site for more details.