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Rural Economic Development Loans and Grants
Rural Economic Development Loans and Grants help develop projects that will result in a sustainable increase in economic productivity, job creation, and incomes in rural areas. Projects may include business start-ups and expansion, community development, incubator projects, medical and training projects, and feasibility studies. Ineligible purposes are those which directly benefit the borrower, conflicts of interest, and costs incurred prior to the application.
Program Details
| Eligibility: |
Applicants are current or pre-paid RUS electricity and telephone borrowers. The project does not have to be within their service area. The majority of the beneficiaries must be in a rural area of under 2,500 in population.
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Funding: |
Funding is either a no interest loan or grant to the borrower, which is relent as a zero interest loan. The maximum amount varies each fiscal year.
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| Terms: |
For a no interest loan, the borrower must sign a promissory note with a term not to exceed 10 years. The principal may be deferred for up to two years. All loans will be secured. The borrower must have a specific recipient at the time of application. Repayment of the loans will equal the term of the loan to the borrower. Grants must be matched up front by the borrower at a rate of 20%. These accounts will be used initially as no interest revolving loans. Funds from other sources must be equal to or greater than 20% of the loan or grant amount.
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| More Information: |
For more information, contact our State Office at (785) 271-2700.
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