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Community Programs can make
and guarantee loans to develop essential community facilities in rural
areas and towns of up to 20,000 in population. Loans and guarantees are
available to public entities such as municipalities, counties, and
special-purpose districts, as well as to non-profit corporations and
tribal governments. Loan funds may be used to construct,
enlarge, or improve community facilities for health care, public safety,
and public services. This can include costs to acquire land needed
for a facility, pay necessary professional fees, and purchase equipment
required for its operation. For examples of essential community
facilities click
here.
Community Programs can guarantee loans
made and serviced by lenders such as banks, savings and loans, mortgage
companies which are part of bank holding companies, banks of the Farm
Credit System, or insurance companies regulated by the National
Association of Insurance Commissioners. Community Programs may
guarantee up to 90% of any loss of interest or principal on the loan.
Community Programs can also make direct loans to applicants who are
unable to obtain commercial credit.
For the guaranteed loan program, the
interest rate is the lender’s customary interest rate for similar
projects. The interest rates for guaranteed loans may be fixed or
variable and are determined by the lender and borrower, subject to RHS
review and approval. Loan repayment terms may not exceed the
applicant’s authority (under State law or organizational structure), the
useful life of the facility, or a maximum 40 years.
Applications are
handled by USDA Rural Development field offices.
Rural Development
staff will be glad to discuss a community's needs and the services
available from Rural Development and other agencies within USDA. Field staff can
provide application materials and current program information, and
assist in the preparation of an application.
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For questions, please refer to the
"Contact
Us"
page of
this website to select the proper individual. Send comments about the format of this web site to:
mailto:philip.eggman@wa.usda.gov
USDA Rural Development is an Equal Opportunity Lender, Provider and
Employer.
Complaints of Discrimination should be sent to:
USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410
EEO/CR Statement
Last modified:
January 04, 2008 |
