ATTENTION: NOW TAKING APPLICATIONS FOR 2020 FUNDING
The Community Facilities program which can be utilized by various sectors in rural communities. In a nutshell, the Community Facilities Program provides affordable funding to develop essential community facilities in rural areas under 20,000 population. The loan rate is now 2.75% (subject to change) and would be fixed for the life of the loan. Terms can be up to 40 years for acquisition or renovation of real estate and useful life if equipment purchase. Please know we DO NOT REQUIRE DAVIS BACON PREVAILING WAGES.
Below is a brief outline of our process and explanation of documents needed:
- Pre-qualification process – Please know we qualify you and your project before funds are committed. Please know, FY 2020 funding is expected Spring of 2020.
Until funds are committed, please do not take any action on any part of the project.
- Equipment: Do not order equipment or sign sales agreements without first receiving an obligation from USDA.
- Construction/Renovation: The applicant and/or lender must NOT take any actions, such as initiation of construction, renovation or earth-disturbing activities during this period of pre-application or application with USDA.
- Grant requests– Once it is determined an applicant is eligible for grant funding ( service area MHI under $48,247) all applications are considered loan only first and grant is not guaranteed for any applicant. The applicant will need to go through the application process to be determined if any grant funds can be applied to the project. Grant funding is limited and highly competitive. Typically, grants are awarded for equipment projects, capped up to $50,000-$100,000, and are designed to help a project cash flow. Grant funding is favorable if combined with our direct loan.