Rural Economic Development Loan and Grant

The Rural Economic Development Loan and Grant program, administered by the Department of Agriculture's Rural Housing Service, provides funding through local utility organizations for rural economic development and job creation initiatives. The program offers zero-interest loans up to $2,000,000 and grants up to $300,000 for projects that will create and retain employment in rural areas. Eligible applicants include local utility organizations, such as rural electric cooperatives and municipal utilities, which can use the funds to establish Revolving Loan Funds or provide pass-through loans to local businesses. The funding can be used for feasibility studies, start-up costs, incubator projects, and other reasonable expenses to foster rural development. The current opportunity has a due date of June 30, 2025.

This program typically awards grants ranging from $100,000 to $300,000, with most awards at the $300,000 level, and has a two-year performance period. The funding is available for rural projects across the United States and its territories.