USDA Logo Rural Development Logo USDA Rural DevelopmentUtilitiesMasthead
SpacerHomeDividerAbout RDDividerNewsroomDividerAgencies & OfficesDividerPrograms & OpportunitiesDividerHelpDividerContact UsDividerEn Español
Search RD
Spacer
Go
Spacer
Browse by Audience
Spacer
Spacer
Browse by Subject
Spacer
Business
Community Development
Cooperatives
Energy
Housing
Utilities
Loans
Grants
Technical Assistance
Forms and Publications
Regulations and Guidance
Online Services
Left Navigation Menu Bottom
Utilities

Electric Program Loans and Grants

The USDA Rural Development Electric Program offers the following sources of financing assistance: FFB Guaranteed Loans, Hardship Loans, Treasury Rate Loans, Municipal Rate Loans, and Assistance to Rural Communities with Extremely High Energy Costs (loan and grant assistance). The primary differences between the programs are the qualifying criteria and the interest rate for each type of financing.

  • FFB Guaranteed
  • Guaranteed Loans are provided by USDA Rural Development primarily through the Federal Financing Bank (FFB), National Rural Utilities Cooperative Finance Corporation (CFC), and the National Bank for Cooperatives (CoBank). The FFB is an agency within the Treasury Department, providing funding in the form of loans for various government lending programs, including the guaranteed loan program. FFB loans are guaranteed by USDA and are available to all electric borrowers. FFB interest rates are fixed to the prevailing cost of money to the United States Treasury, plus an administrative fee of one-eighth of 1 percent. Under this program, loans are executed by the borrower and FFB, CFC, or CoBank, with payment of principal and interest guaranteed by USDA. CFC and CoBank rates are negotiated between the lender and the borrower.

  • Hardship Loans
  • Hardship Loans are used to finance electric distribution and sub-transmission facilities at the 5 percent hardship rate to qualified borrowers. These direct loans are made to applicants that meet rate-disparity thresholds and whose consumers fall below average per-capita and household income thresholds. In addition, Hardship loans can be made to qualified applicants if the Administrator determines that the borrower has suffered a severe unavoidable hardship, such as a natural disaster.

  • Energy Efficiency and Conservation
  • The new Energy Efficiency and Loan Conservation Program will promote rural economic growth while reducing greenhouse gases. It also fulfills an important component of President Obama’s Climate Action Plan to build a cleaner and more sustainable domestic energy sector for future generations by reducing barriers to investment in energy efficiency and potentially cutting energy bills for American families and businesses in the process.


Assistance to Rural Communities with Extremely High Energy Costs provides grants and loans to be used to acquire, construct, extend, upgrade, and otherwise improve energy generation, transmission, or distribution facilities serving communities in which the average residential energy expenditure for home energy is at least 275 percent of the national average. Eligible entities are persons, State and local governments, and federally recognized Indian tribes and tribal entities.

In addition, grants and loans may be provided to the Denali Commission, a State-Federal rural development entity, to improve energy facilities serving high-energy-cost communities in Alaska. Interested communities may apply to the Denali Commission.

There is a statutory cap of 4 percent on planning and administrative expenses for funds made available under these programs.


Renewable Energy Projects, including renewable energy systems, such as solar, wind, hydropower, biomass, or geothermal, can be financed through Guaranteed Loans.

About UEP
Spacer
Unselected BulletElectric Program Home
Spacer
Spacer
Unselected BulletHeadquarters Staff
Spacer
Spacer
Unselected BulletField Staff
Spacer
Spacer
Unselected BulletSuccess Stories
Spacer
Spacer
Unselected BulletSpecial Edition Anniversary Newsletter
Spacer
Spacer
Unselected BulletJoint Ownership and Environmental Review
Spacer
Spacer
Right Navigation Column Menu Bottom
I Want To...
Spacer
Unselected BulletApply for a Loan
Spacer
Spacer
Unselected BulletApply for a Grant
Spacer
Spacer
Unselected BulletSee Interest Rates
Spacer
Spacer
Unselected BulletSee Boxscore
Spacer
Spacer
Right Navigation Column Menu Bottom
UEP Customer Resources Support
Spacer
Unselected BulletBulletins and Forms
Spacer
Spacer
Unselected BulletDCS
Spacer
Spacer
Unselected BulletEnvironmental
Spacer
Spacer
Unselected BulletFederal Register
Spacer
Spacer
Unselected BulletRegulations
Spacer
Spacer
Unselected BulletUseful Links
Spacer
Spacer
Right Navigation Column Menu Bottom
Last Modified:11/21/2014 
 
Footer Corner
RD Home | USDA.gov | Site Map | Policies and Links
FOIA | Accessibility Statement | Privacy Policy | Non-Discrimination Statement | Information Quality | FirstGov | White House