PROGRAM DESCRIPTION: Funds are for essential community facilities (CF) with emphasis on health and safety: fire stations, fire trucks, clinics, nursing homes and hospitals. They may also be used for such things as streets, activity centers for the handicapped, schools, day care, libraries and other community buildings.
TYPE OF ASSISTANCE: Loans only. Applicant must be unable to borrow money elsewhere at rates and terms to make the project affordable. Leveraging is highly recommended due to limited CF funding allocations.
ELIGIBILITY REQUIREMENTS: Applicants are public bodies (city, township, county or special district), Indian tribes cooperatives or other non-profit organizations. Service area must be under 50,000 in population.
INTEREST RATE: Loan interest rate depends upon the median household income of the borrower. The rate can be as low as 4.5%, and will usually be no higher than commercial bonds.
TERMS AND COLLATERAL: Loan term is up to the useful life of the security or 40 years, whichever is shorter. Collateral can be general obligation bonds, revenue bonds, liens on real and chattel property, etc. for public bodies. Collateral for other than public bodies may be assignments of income, liens on real and chattel property, etc.
CONTACT: Applicants are made at Rural Development Area offices.
For assistance, please contact the Area Office which serves the area you are interested in, or Jennifer Sass at 919-873-2070 or email@example.com
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