Electric Hardship Loans
Purpose: Electric Hardship Loans provide financing to upgrade, expand, maintain, and
replace rural electric distribution, subtransmission and headquarters (service & warehouse)
facilities to serve customers in rural areas.
Eligibility: Click Forms 3030 and 3031 for restrictions related to convicted felons and tax delinquent corporations. Eligible borrowers are retail providers that meet rate disparity thresholds
and whose consumers fall below average per capita and household income thresholds or that have
suffered a severe, unavoidable hardship, such as a natural disaster, as determined by the RUS
Administrator. Entities eligible for electric loans include corporations, states, territories,
and subdivisions and agencies thereof, municipalities, people's utility districts, and cooperative,
non-profit, limited-dividend or mutual associations that provide retail or power supply service
needs in rural areas.
Interest Rate: 5%
Supplemental Financing Required: No
Loan Terms: Term of loan not to exceed useful life of the facilities being financed, with a
maximum term of 35 years.
Basic Instruction: Specific language on loan eligibility and terms can be found in
7 CFR Part 1714. Loan policies and application procedures can be found in
7 CFR Part 1710.
Additional information about the electric loan programs and advice on completing and assembling an
application are available from the national office. The Electric Program is divided in two regional
divisions: Northern Regional Division, (202) 720-1420; Southern Regional Division, (202) 720-0848.
Power supply borrowers should contact the Power Supply Division, (202) 720-1439.