Community Facilities Relending Loan Program

What does this program do?

Community Facilities programs provide loans for essential community infrastructure, so that people who live and work in rural areas can enjoy the same basic quality of life and services as those in urban and metropolitan areas.

Who may apply for this program?

Eligible borrowers include:

  • • Public bodies    
  • • Community-based nonprofit corporations    
  • • Federally recognized Tribes

What is an eligible area?

The applicant's facility must be located in rural areas such as cities, villages, townships, and towns, including those on Federally recognized Tribal Lands, with no more than 20,000 residents.

How may funds be used?

The re-lender uses funds from USDA to re-lend to applicants. Applicants may use the funds from the re-lender to purchase, construct, and/or improve essential community facilities, purchase equipment, and pay related project expenses. Examples include but are not limited to:
  • Health care facilities such as hospitals, medical clinics, dental clinics, nursing homes, or assisted living facilities
  • Public facilities such as town halls or courthouses
  • Street improvements
  • Community support services such as child care centers, community centers, fairgrounds, or transitional housing
  • Public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles or equipment; and educational services such as museums, libraries, colleges, and public or private schools.
For a complete list see Code of Federal Regulations 7 CFR, Part 1942.17(d) for loans; 7 CFR, Part 3570.62 for grants.

What are the loan terms?

Loans we make will have fixed interest rates and maybe for up to 40 years. The terms of the loan by the re-lender to the applicant are negotiated between the two parties.

What are some of the benefits of these loans?

These loans are targeted to high- or persistent poverty areas. Re-lenders must demonstrate that they have experience making loans in these economically distressed rural areas. This expertise enables the re-lenders to provide technical assistance and financial expertise to help applicants access capital that may not have been available to them before. The low interest, long-term, fixed-rate loans also make access to capital much more affordable.

Are there any additional requirements?

Applicants must demonstrate that they have significant ties to the local community. They must use loan funds for eligible essential community facilities as outlined in our regulations. Examples include healthcare centers, town halls, courthouses, street improvements, child care centers, public safety services, and educational facilities.