This type of assistance is available in rural areas, being towns with a population of 20,000 or less inhabitants. Community Facilities are those essential facilities that are necessary for the orderly community development. Examples fall under the categories of Health Care (clinics, rehabilitation centers, hospitals); Public Safety (police, fire and rescue communications, vehicles, stations and equipment); Public Services (child care, day care, airports, libraries, town halls, schools); and, Telecommunications (medical and educational).

Loans are made to construct, enlarge, extend or otherwise improve community facilities providing essential services in rural areas. Funds are available to public entities such as municipalities, counties, special purpose districts, federally recognized tribal groups and corporation not operated for profit. Direct Loans are available at fixed interest rates that may be as low as five percent with terms up to 40 years. Rural Housing Service also guarantees community facility loans made by banks or other eligible lenders.

Community Facility Grants can be used to assist rural areas in developing essential public community facilities. Grant funds can be used to supplement funding for projects eligible under our direct or guaranteed community facility program. Eligible applicants are limited to those communities under 20,000 population and the facility must serve areas where median household income is below the poverty line or 80 percent of the state non-metropolitan median household income.