Community Facilities Direct Loan Program
- Eligible applicants include public entities such as municipalities,
counties, special-purpose districts, Indian tribes and nonprofit
- Corporations that have been convicted of a felony (or had an officer or
agency acting on behalf of the corporation convicted of a felony) within the
past 24 months are not eligible. Any Corporation that has any unpaid
federal tax liability that has been assessed, for which all judicial and
administrative remedies have been exhausted or have lapsed, and that is not
being paid in a timely manner pursuant to an agreement with the authority
responsible for collecting the tax liability, is not eligible for financial
assistance provided with funds appropriated by the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2012, P.L. No. 112-55.
Loan Terms and Conditions:
- The term of the loan is 40 years or for the useful life of the security.
- Interest rates are comparable to current municipal bond rates and are
based on the median household income of the service area.
- The maximum loan amount is 100 percent of the market value.
- A test of credit is required.
- Eligible areas include unincorporated rural areas, cities and towns with
population of 20,000 or less.