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Community Facilities Grant

Community Programs provides grants to assist in the development of essential community facilities in rural areas and towns of up to 20,000 in population.  Grants are authorized on a graduated scale.  The Community Facilities Grant Program is typically used to fund projects under special initiatives, such as Native American community development efforts; child care centers linked with the Federal government's Welfare-to-Work initiative; Federally-designated Enterprise and Champion Communities, and the Northwest Economic Adjustment Initiative area.

 Projects that will receive priority are those that:

  • Serve small communities - with the highest priority going to projects located in a community with a population of 5,000 or less.
  • Serve low-income communities - with the highest priority going to projects serving communities with median household incomes below the higher of the poverty line or 60 percent of the State non-metropolitan median household income.
  • Provide healthcare, public safety, or public and community services

A grant may be made in combination with other CF financial assistance such as a direct or guaranteed loan, applicant contributions, or loans and grants from other sources.   For examples of essential community facilities click here.

Grant funds cannot be used to:

  • Pay any annual recurring costs, including purchases or rentals that are generally considered to be operating and maintenance expenses
  • Construct or repair electric generating plants, electric transmission lines, or gas distribution lines to provide services for commercial sale
  • Pay costs to construct facilities to be used for commercial rental where the applicant has no control over tenants and services offered
  • Construct facilities primarily for the purpose of housing State, Federal or quasi-Federal agencies
  • Finance recreational facilities or community antenna television services or facilities

Applications are filed with the 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 sister agencies within USDA.  Detailed information and applications for financial assistance are available through Rural Development State Offices.

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 Last modified: February 16, 2006