Community Facilities Loans and Grants

To provide affordable funding either through loans or grants to develop essential community facility projects in rural communities to nonprofits, public bodies, and federally recognized tribes. Ensure program is delivered efficiently, effectively an

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.

City, county, and other public bodies; community-based non-profit corporations; and Federally-recognized Tribes. Eligible applicants must: (1) operate on a not-for-profit basis; (2) have or will have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service and for obtaining, giving security for, and repaying the loan; and (3) are unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms. Assistance is authorized for eligible applicants in rural areas of the States, Puerto Rico, the Virgin Islands, Guam, American Samoa, the commonwealth of the Northern Mariana Islands, the Marshall Islands, the Republic of Palaw, and the Federated States of Micronesia.

Loans for essential community facilities are made to eligible entities who provide essential community services to the population living within the service area of the facility or being served by the facility. Beneficiaries include farmers, ranchers, rural residents, rural businesses, and other users of such public facilities in eligible applicant areas as set out above.

Evidence of legal capacity and financial responsibility of the applicants and the economic feasibility of the project relative to the activity for which assistance is requested.

Community facilities include, but are not limited to, those providing or supporting overall community development such as hospitals, fire stations, child care facilities, food recovery and distribution centers; assisted-living facilities; group homes, mental health clinics, and shelters; and education facilities. Projects comprise community, social, health care, education, cultural, transportation, industrial park sites, fire and rescue services, access ways, and utility extensions. All facilities financed in whole or in part with RHS funds shall be for public use.

A time limitation is not specified for the use of Community Facilities loan or grant funds. Funds will be awarded when all program requirements are met and the project can be completed on a timely basis.

The standard application forms as provided by the Federal agency and required by OMB Circular No. A-102 must be used for this program. An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires in applying for assistance if the State has selected the project for review.

For direct loans and grants, applicants must file Standard Form SF-424 and supporting documentation at the local Rural Development Area Office. For guaranteed loans, the lender must file Form RD 5001-1 and supporting documentation.

Projects are selected for funding giving due consideration to State development strategies, serving the largest number of low income rural residents, and priority recommendations. Priority for funding will be given to those projects that will enhance public safety such as fire, police, rescue and ambulance services, and projects for health care facilities.

After the preapplication has been reviewed by the Rural Development Area Office, it is forwarded to the Rural Development State Office for review and processing instructions. Following review by the State Office, the applicant is notified about eligibility, availability of funds, and if an application should be filed. Upon completion of application processing requirements and approval by the State Office, funds are made available to the Rural Development Area Office for delivery.

From 30 to 90 days after a complete application is received.

If an application is rejected, the reasons for rejection are fully stated. The notification will include a statement for appeal or review of the adverse decision. The applicant may request an appeal or review of the decision.