Community Facilities (CF) grants
can be used to assist low income rural areas and towns in developing essential public community facilities.

Eligibility:
Eligibility is limited to associations, nonprofit corporations, public bodies, and federally recognized Indian Tribes serving rural areas. 

Applicants must:
Be unable to obtain needed funds from commercial sources at reasonable rates and terms.

Have the legal authority necessary for construction, operation, & maintenance of the proposed facility.

Propose facilities that are necessary for orderly community development and consistent with the State’s USDA, Rural Development, strategic plan.

Be located in a rural community having a population of 20,000 or less.

Serve areas where the median household income of the population to be served by the 
proposed facility is below the higher of the poverty line or 80 percent of the State non-metropolitan median household income.

HOW MAY FUNDS BE USED? 
Grant funds may be used to supplement financial assistance authorized in Rural Development Instruction (RD) 1942-A, “Community Facility Loan”, RD Instruction 1942-C, “Fire and Rescue Loans.”  Funding for the balance of the project may consist of other CF financial assistance (direct or guaranteed loans), applicant contribution, or loans or grants from other sources.
 
Typical facilities include:

WHAT ARE THE FUNDING PRIORITIES? 
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 those with a population of 5,000 or less.

Serve very low income communities with the highest priority going to communities with a median household income below the higher of the poverty line or 60 percent of the non-metropolitan median  household income.

Provide health care, public safety services identified as necessary in the State Strategic Plan.

What are the Limitations on Grants?
Grant funds cannot be used to:  

Pay any annual recurring costs, including purchases or rental 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.

Refinance existing indebtedness, pay interest, or loan/grant finder’s fees.

Pay any costs of a project where the median household income of the population to be served by
the proposed facility is above the higher of the poverty line or 80 percent of the State non-metropolitan median household income.

How to Apply
Detailed information and applications are available through our Area Offices.

To find the Area Office serving your county click here