US Department of Agriculture

Community Facilities Direct loan and Grant Program

This program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.

Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses.

Examples of essential community facilities include:

Maximum Award Amount

Grants:

Maximum of 75 percent when the proposed project is:

  • Located in a rural community having a population of 5,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 60 percent of the State nonmetropolitan median household income.

Maximum of 55 percent when the proposed project is:

  • Located in a rural community having a population of 12,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 70 percent of the State nonmetropolitan median household income.

Maximum of 35 percent when the proposed project is:

  • Located in a rural community having a population of 20,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 80 percent of the State nonmetropolitan median household income.

Maximum of 15 percent when the proposed project is:

  • Located in a rural community having a population of 20,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 90 percent of the State nonmetropolitan median household income. The proposed project must meet both percentage criteria. Grants are further limited.

Grant funds must be available.

See funding website for loan terms.

Cost Matching

N/A

Eligible Applicants

Public bodies, tribal government, and nonprofit organizations

Find Out More and Apply