|Who May Apply
Who may apply
Community Programs provides grants
to assist in the development of essential community facilities in rural areas and towns of
up to 20,000 in population. Grants are authorized on a graduated scale.
Applicants located in small communities with low populations and low incomes will receive
a higher percentage of grants.
Grants are available to public entities such as municipalities, counties, and
special-purpose districts, as well as non-profit corporations and tribal governments.
In addition, applicants must have the legal authority necessary for construction,
operation, and maintenance of the proposed facility and also be unable to obtain needed
funds from commercial sources at reasonable rates and terms.
Fund Uses top
Grant funds may be used to assist in the development of essential community
facilities. Grant funds can be used to construct, enlarge, or improve community
facilities for health care, public safety, and community and public services. This
can include the purchase of equipment required for a facility's operation. A grant
may be made in combination with other CF financial assistance such as a direct or
guaranteed loan, applicant contributions, or loans and grants from other sources.
For examples of essential community facilities click here.
The Community Facilities Grant Program is
typically used to fund projects under special initiatives, such as Native American
community development efforts; child care centers linked with the Federal government's
Welfare-to-Work initiative; Federally-designated Enterprise and Champion Communities, and
the Northwest Economic Adjustment Initiative area.
Maximum Grant top
The amount of grant assistance
for project costs depends upon the median household income and the population in the
community where the project is located and the availability of grant funds. In most
instances, projects which receive grant assistance have a high priority and are highly
leveraged with other loan and grant awards.
Grant assistance may be available for up to 75% of project costs. Grant funding
limitations are based on population and income, economic feasibility, and availability of
Projects will be selected based on a priority point system. Projects that will
receive priority are those that:
- Serve small communities - with the highest priority going to projects
located in a community with a population of 5,000 or less.
- Serve low-income communities - with the highest priority going to
projects serving communities with median household incomes below the higher of the poverty
line or 60% of the State non-metropolitan median household income.
- Provide healthcare, public safety, or public and community services
Grant funds cannot be used to:
- Pay any annual recurring costs, including purchases or rentals that are generally
considered to be operating and maintenance expenses
- Construct or repair electric generating plants, electric transmission lines, or gas
distribution lines to provide services for commercial sale
- Pay costs to construct facilities to be used for commercial rental where the applicant
has no control over tenants and services offered
- Construct facilities primarily for the purpose of housing State, Federal or
- Finance recreational facilities or community antenna television services or facilities
Application Processing top
Applications are filed with the USDA Rural Development field offices. Rural
Development staff will be glad to discuss a community's needs and the services available
from Rural Development and sister agencies within USDA. Detailed information and
applications for financial assistance are available through Rural Development State