Community Facilities (CF) loans are available to develop or improve essential public community facilities.

Eligibility is limited to nonprofit corporations and public bodies serving rural areas. Applicants must:

1. Be unable to obtain or afford the needed funds on a loan basis from other sources at reasonable rates and terms.
2. Hhave or be able to obtain the legal authority to give security for the loan and operate the facility.
3. Be located in, and primarily serve rural communities having a population of 20,000 or less.
4. Own and operate in the facility which is financed.

Loans are available to finance capital projects which include:

• New construction
• Building renovation or expansion
• Purchase of existing buildings
• Furnishings, fixtures and equipment (including telecommunications and computer systems)
• Architectural, engineering, legal and other professional services needed to develop a project.

1. The project must be financially feasible.
2. The facility financed must be modest in size, cost and design.
3. The facility financed must provide an essential community service to the local community (or communities for regional service providers). Examples of essential services include:

• Fire and rescue

• Health care

• Educational

• Cultural

• Museum

• Library

• Public buildings space
• Elder and child care

Interest rates range between 4.5% to 6% and are based on the household income (U.S. Census) of the communities served. Rates are fixed at closing and terms are based on the useful life of the facility financed. Typically, real estate loans are 30 year terms and equipment loans are for 7-15 year terms.

• Working capital
• Refinancing
• Recreational facilities

• No borrower contribution required. RD may loan 100% of the project's costs
• No minimum equity requirements
• No minimum or maximum loan amounts
• No application or processing fees

1. Feasibility/market studies may be required for large loans or start-up facilities.
2. Construction procurement must be by competitive bid.
3. Annual audited financial statements are required for all loans (after loan closing) when the loan balance is $300,000 or greater.
4. Facilities financed must meet accessibility requirements of ADA and UFAS.
5. Facilities financed must comply with all Federal Civil Rights Laws and be open and available to the general public.