USDA COMMUNITY FACILITIES LOAN
The Community Facilities Loan Program offers direct loans, loan guarantees and grants to develop or improve essential public services and facilities in communities across rural America.
Essential Community Facilities
Business and Real Estate acquisitions, construction, conversion, expansion, repair, modernization or development.
Purchase of equipment, machinery, or inventory.
Start-up costs and working capital.
Refinancing for viable projects.
Eligible Applicants
Public Bodies, Non-Profits and Federally-recognized tribes
Communities with less than 20,000 residents
Eligible Purposes
Acquire existing real estate
Construct, expand, renovate or improve facilities
Purchase vehicles and major equipment
Associated project expenses (i.e. legal fees, interest expense)
Refinancing when less than 50% of the total project cost
ADDITIONAL REQUIREMENTS
Applicants must have legal authority to borrow money, obtain security, repay loans, construct, operate and maintain the proposed facilities
Applicants must be unable to finance the project from their own resources and/or through commercial credit at reasonable rates and terms
Tax exempt financing is not eligible for this program
Lender responsible for determining credit quality and economic feasibility of proposed loan; adequacy of equity, cash flow, security, history and management capabilities
Facilities must serve rural area where they are /will be located
Project must demonstrate substantial community support
Environmental review must be completed/acceptable