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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. Refinancing existing debts may be
considered an eligible direct or guaranteed loan purpose if the debt
being refinanced is a secondary part of the loan, is associated with the
project facility, and if the applicant’s creditors are unwilling to
extend or modify terms in order for the new loan to be feasible. For
examples of essential
community facilities click here.
For the direct loan program
there are three levels of interest rates available (poverty,
intermediate, and market) each on a fixed basis. The poverty rate is set
at 4.5 percent. The market rate is indexed to the eleventh bond buyer’s
rate as determined by the U. S. Treasury Department. The intermediate
rate is set halfway between the market and the poverty rates.
Eligibility for these different interest rates is determined by the
median household income (MHI) of the area being served and the type of
project. The intermediate and market interest rates are adjusted
quarterly. Contact your Rural Development State Office to determine the
eligible interest rate for your area.
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 USDA
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:
February 16, 2006 |
