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Housing
Business and Cooperatives
Rural Economic Development Loan and Grant Program
Provides for a wide range of rural economic development and job creation
projects that will improve the economic condition of rural areas. Loans
and grants are made to USDA Rural Development electric and telephone program
borrowers who use the funds to provide financing for business and community
development projects. Projects may include business expansion and
start-up, community development, business incubator, medical, training and
technology projects, revolving loan funds, etc.
Eligibility:
- Eligible applicants include USDA Rural Development program electric and
telephone utilities.
Loan and Grant Terms and Conditions:
- Loans are made to eligible utility and telephone cooperatives.
Grant funds are available to eligible utility, telephone cooperatives and
Public Power Districts.
- Funds must be used to promote rural area projects that spur economic
productivity and job creation.
- The loan term is zero percent interest for a maximum of 10 years.
- The loan is held to a minimum of $10,000 and the maximum amount is
subject to availability of funds each fiscal year.
- 20 percent supplemental funding is required for the loans from the
project owner.
- Grants are provided to utility cooperatives to support economic
development projects.
- With grants, the applicant must establish a revolving loan fund.
- Grants are limited to a minimum of $10,000 and the maximum amount is
subject to availability of funds each fiscal year.
- 20 percent supplemental funding is required by the applicant for grants.
The 20 percent can be loaned to the project owner or a separate eligible
project.
- 20 percent supplemental funding is required for the grants from the
project owner.
- Eligible areas include unincorporated rural areas, cities, and towns
with populations of less than 50,000. Points are given to populations
of 2,500 and under.
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