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Washington State


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Community Facilities Guaranteed Loan

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 lenderís 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 applicantís 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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USDA Rural Development is an Equal Opportunity Lender, Provider and Employer.

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USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410

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 Last modified: January 04, 2008