USDA Rural Development

Community Facility Programs

USDA - RURAL DEVELOPMENT - The Community Facilities loan program is designed to assist rural communities up to 20,000 population to help provide public services. There are direct loans, guaranteed loans and grants. The direct loans are made directly from USDA to the community at low interest rates. Guaranteed loans are made by banks or other lending institutions with a federal guarantee up to 90 percent against possible losses.

The funds can be used to construct, enlarge or improve community facilities for health care, public safety, and public services. This can include purchasing land for a facility, paying necessary professional fees, and purchasing required equipment.


Examples of essential community facilities include:
Health Care: Clinics, ambulatory care centers, hospitals, rehabilitation centers and nursing homes.
Telecommunications: Medical and educational telecommunications links.
Public Safety: Communication centers, police and fire stations, fire trucks, rescue vehicles and jails.
Public services: Adult and child care facilities, city halls, courthouses, airports, parking garages, off-street parking, sidewalks, street improvements, college classrooms and dormitories, libraries, museums, schools, fairgrounds, and animal shelters.

Loans and grants are available to public entities such as municipalities, counties, and special purpose districts, as well as to nonprofit corporations and tribal governments. Applicants must have legal authority to borrow and repay loans, to pledge security for loans, and to construct, operate and maintain the facility.

The terms are limited to 40 years, however the repayment period cannot exceed the life of the security for the loan. Interest rates are based on current market rate, but some lower interest rates are available if certain criteria are met.
Contact Point: James E. Waters, Business and Community Program Director, USDA Rural Development, 1221 College Park Drive, Suite 200, Dover, Delaware 19904. Phone: (302) 857-3625; FAX: (302) 857-3635 or E-Mail: Jim.Waters@de.usda.gov.