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: Denise MacLeish, 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:
Denise.MacLeish@de.usda.gov
