Program Description: The Rural Economic Development Loan and Grant Program provides zero-interest loans and grants to Rural Utility Service (RUS) borrowers, who in turn relend the money as a zero interest loan to local entities to promote rural economic development and job creation projects.
Type of Assistance: The RBS zero interest loan is made to telephone and electric utility companies who are RUS borrowers. The company then relends the money to the ultimate recipient for eligible projects, also at zero percent interest. The RBS grant program provides a grant to the rural utility company that uses the funds to establish a revolving loan fund that can be used for community facilities and infrastructure.
Eligibility Requirements: Zero interest loans and grants may be made to any electric telephone RUS borrowers or certain former RUS borrowers who prepaid their REA loan early at a discount, that are not financially distressed, delinquent on any federal debt or in bankruptcy proceedings. The ultimate recipients of the zero interest loans may be a for-profit business that provides economic development or job creation in a rural area. The ultimate recipients of the loans made from the RUS revolving fund must be a non-profit entity that provides needed community facilities or infrastructure.
Contact: Applications from the RUS financed telephone and electric companies are made at the Rural Development State Office. Funding selections are made at Washington, DC, based upon a national competition. For further information, call (208) 378-5623.
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