Rural Economic Development Loans (REDL) provides zero-interest
loans to electric and telephone utilities serving a rural area to promote sustainable rural economic development and job creation projects.
Zero-interest loans will be provided to third-party recipients
(private or public organizations having corporate and legal authority to incur
debt) to finance
projects that promote economic development and job creation in rural areas.
Funds can be used for:
- Business expansions and business startups, including cost of buildings,
equipment, machinery, land, site development, and working capital.
- Community infrastructure necessary for economic development and job creation
- Community facilities and services necessary for economic development and job
- Medical facilities and equipment to provide medical care to rural residents.
- Educational facilities and equipment to provide training and job enhancement
skills to rural residents to facilitate economic development.
- Business incubator projects to assist in developing emerging enterprises.
Loans cannot be used by the utility or the third-party recipient
- Refinancing or paying off any existing debt owed by the third-party
- Projects located in areas covered by the Coastal Barrier Resources Act or
projects that would adversely impact the environment.
- Projects that will be used for residential purposes or entertainment
purposes at the residential level.
- The purchase of an established business or operation or to primarily
transfer property or real estate between owners without making substantial
improvements or additions that will result in long-term job creation.
- Projects that will result in the transfer of existing employment or business
activities from one area to another.
For more information about the program, please
contact the USDA Rural
Development Area Office nearest you.
Rural Economic Development Grant
Back to programs page
Back to homepage
For questions, please refer to the
this website to select the proper individual. Send comments about the format of this web site to:
USDA Rural Development is an Equal Opportunity Lender, Provider and
Complaints of Discrimination should be sent to:
USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410
June 15, 2009