Direct
Community Facility Program
HOW TO APPLY:
Click here to contact an area office. Basic information will be
provided over the telephone, and an application will be mailed to you to be completed and
returned to the office; or an appointment will be scheduled.
LOAN PURPOSES:
Land or Equipment Purchase
Construction
Contingency
Legal, Administrative, Architectural,
Engineering fees
Interest on interim financing
Refinancing - as long as it is a
minor part of the loan
ELIGIBLE APPLICANTS:
Towns and Cities
Counties
Tribes
Not-for-Profit Corporations
Quasi-municipal Districts
Applicants must be unable to obtain
the necessary credit elsewhere at reasonable rates and terms.
RATES:
Rates are reviewed and may change
quarterly
Market Rate of
4.50%
- In areas above the state's
non-metropolitan median household income (NMHI) which is currently $37,335
Intermediate Rate of 4.50%
- The state's NMHI of $37,335 or below
Poverty Rate is available in
communities which are below the poverty line of 80% of the state's NMHI.
- Loan must be used to correct a health
or sanitary hazard which has been identified by the state.
TERMS:
Forty year maximum term
Thirty year maximum term for municipalities
Not to exceed the lesser of the life of the security
or charter limitations
SECURITY:
All security must secure the entire
loan
- General Obligation Bonds
- Revenue Bonds
- Real Estate Mortgages
- Assignment of Income
- Financing Statement
TYPICAL TYPES OF PROJECTS:
Hospitals
Nursing Homes
Health Centers and Clinics
Schools (Other than state funded
facilities)
Fire and Rescue
Click here to obtain
more information on our direct community facilities loan program, or to request an
application.
If you would like to review USDA
Regulations, Procedures, Notices, RD Forms, or RD Handbooks, Click Here.
Return to Community
Facilities.
