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Chimney Rock Photo provided by the Western Nebraska Tourism Coalition

 Chimney Rock Photo provided by the

 Western Nebraska Tourism Coalition

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Community Facilities
Guaranteed Loan Program
 Overview  


 
Community Memorial Hospital  Syracuse, Nebraska

Community Memorial Hospital

Syracuse, Nebraska

 

The Purpose Of The Guaranteed Community Facilities Loan Program Is...To work with local lenders - including banks, savings and loan associations, mortgage companies, and Farm Credit System banks to offer loan guarantees to help build essential community facilities and purchase equipment in rural areas.  Community service facilities include: fire and rescue buildings and/or equipment, streets, utilities, community buildings, libraries, senior citizen centers, day care centers, airports, industrial parks, hospitals, clinics, nursing homes, assisted living facilities, etc.

 

Eligible Applicants Include...Public entities such as municipalities, counties, special-purpose districts, Federally recognized Indian tribes, and nonprofit organizations.

 

Terms And Conditions...

   Rates and terms negotiated between borrower and

    lender.

 

  Program is lender driven--loan originated by

    lender with USDA Rural Development issuing

    guarantee on loan funds.

 

   Guarantees are normally 80 percent and require

    1 percent fee.

 

   Lender’s risk of loss reduced by percent of loan

    guarantee.

 

   Lender can offer better terms to customer,

    especially when loan sold on secondary market.

 

   USDA Rural Development cannot guarantee

    tax-exempt bond issues.

 

   Eligible areas include unincorporated rural areas,

     cities, and towns with population of 20,000 or

     less.

 

View...The detailed Community Facilities Guaranteed Loan Fact Sheet and the Examples of Essential Community Facilities Fact Sheet.

 

Locate And Contact...Your nearest USDA Rural Development Office.

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Last Updated:  08/22/07

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