Florida • Virgin Islands

 Community Facilities
Guaranteed and Direct Loans
    "Building Communities from the Ground Up"

Eligibility
Public bodies, nonprofit corporations and federally recognized Indian Tribes are eligible to apply. Projects must be located in rural areas or small incorporated towns and cities not larger than 20,000 population based on the latest decennial Census of the United States.

To qualify applicants must be unable to obtain the financing from
other credit sources at reasonable rates and terms.

Funds can be used for construction, land acquisition, legal fees, architect fees, capitalized interest, equipment, initial operation and maintenance costs,
project contingencies, and any other cost that is determined by Rural Development
to be necessary for the completion of the project.

Interest Rates

Guaranteed Loans: As negotiated by the lender and applicant and determined to be reasonable. May be fixed or variable rate.

Direct Loans: Market Rate - Available to applicants whose project service area income is greater than the State non-metropolitan income (NMHI). $39,730 for Florida.

Intermediate Rate: Available to applicants whose project service area income is not more than the State NMHI and who otherwise do not qualify for the poverty rate.

***A two percent increase in interest rate may be assessed when a project is built on prime farmland.

Rates are subject to change quarterly (January 1, April 1, July 1, October 1). The market rate is based on the performance of the Bond Buyer Index. The intermediate rate is set halfway between the poverty and market rates but will not to exceed 7 percent. Rates are fixed and the maximum rate is established at the time the loan is approved. If rates drop by the time the loan is closed, the applicant is afforded the opportunity to receive the lower rate.

Poverty Rate

Available to applicants whose project service area income is below the latest established nationwide poverty level (currently $19,350) or below 80 percent of the State NMHI (80% of $39,730 = $31,784) and there are existing health/sanitation conditions that would be alleviated with the proposed project so as to comply with regulatory agencies' established standards. The health/sanitation provisions do not apply to health care and related facilities that provide direct heath care to the public.

Repayment Terms

Up to 40 years for both direct and guaranteed loans based on applicant's legal authority, type of security offered, and the expected useful life of the facility.

Security

Public Bodies: Revenue Bonds, General Obligation Bonds, Special Assessment Bonds. Guaranteed loans may not be secured by tax-exempt obligations

Non-Profit Corporations: Promissory Notes, Real Estate Mortgages, Financing Statements, Security Agreements.

Maximum Amounts:

Direct Loans: May be obtained for 100 percent of eligible project costs subject to adequate security, ability to repay, applicant's authority to borrow, and availability of funds.

Guaranteed loans: Same as for direct loans as determined by private lender and approved by Rural Development. The guarantee is usually 80 percent of the loan amount, however, a 90 percent guarantee may be authorized under special circumstances.

How to Apply

For direct loans eligibility of an applicant can be determined by filing a pre-application package with the appropriate Rural Development Area Office.

Eligible applicants will be invited to file an application subject to the availability of funds.
USDA Rural Development personnel will directly assist the applicant in the preparation of the loan/grant docket.


After eligibility is determined but prior to the development of the application docket, Rural Development must:

Review and approve the preliminary architectural report.

Review and approve the architectural services agreement.

Complete the environmental review and assess the impact of the project on the human environment to include required public notifications.

Obtain or verify any other information that is necessary to determine eligibility and feasibility, depending on the nature of the project being financed.  


Application is to be filed with the Rural Development
Area Office serving the county in which the project is located.

Area Office staff will gladly discuss services available from Rural Development and provide guidance on the preparation of applications for assistance.

Area Offices:
Crestview 850 682-2416, ext 4
Marianna 850 526-2610, ext. 5
Ocala 352 732-7534, ext. 5
Tavares 352 742-7005, ext. 5
West Palm Beach 561 683-2285, ext. 5

  To find the Area Office serving your county, click here