Guaranteed Loan Program
Examples of eligible lenders are:
- Banks or savings and loan associations
- Mortgage companies that are part of banks
or holding companies
- Farm Credit Banks
- Insurance companies regulated by the
National Commissioner of Insurance Companies
Other lenders under Federal or State
credit examination and supervision may also be approved by the Housing and Community Facilities Programs
The Housing and Community Facilities Programs Community
Facilities Program assists in development of essential community facilities and services
in rural areas of up to 20,000 in population. To
see examples of projects which may be eligible for essential community facilities under
the Community Facilities Loan and Grant Programs click here.
Loans can be guaranteed to municipalities, counties, and
special-purpose districts, as well as to non-profit corporations and tribal
governments. Applicants must have the legal authority to borrow and repay loans, to
pledge security for loans, and to construct, operate, and maintain the facilities.
They must also be financially sound and able to organize and manage the facility
The interest rate is negotiated between the lender and the
applicant. It may be fixed, variable, or both. Loan payments must be
amortized. Loan terms are for the estimated useful life of the facility or no more
than 40 years. The Housing and Community Facilities Programs can guarantee up to 90% of the worth of the
For more information
about the HCFP Community Facilities program, click here.
Top of Page
To determine eligibility for
these and other Housing and Community Facilities Programs programs, please contact your local or State Rural Development office.