Community Facilities Direct Loan and Grant
1. Eligible borrowers include:
2. Applicants must have legal authority to borrow money, obtain security, repay loans, construct, operate, and maintain the proposed facilities.
3. Applicants must be unable to finance the project from their own resources and / or through commercial credit at reasonable rates and terms.
4. Facilities must serve rural area where they are/will be located.
5. Project must demonstrate substantial community support.
6. Environmental review must be completed/acceptable.
7. Applicant must be eligible for grant assistance, which is provided on a graduated scale with smaller communities with the lowest median household income being eligible for projects with a higher proportion of grant funds. Grant assistance is limited to the following percentages of eligible project costs:
A. Maximum of 75 percent when the proposed project is:
B. Maximum of 55 percent when the proposed project is:
C. Maximum of 35 percent when the proposed project is:
D. Maximum of 15 percent when the proposed project is:
8. Funds must be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses.
National Architect Requirements
Applicants, at the earliest possible time, should provide a Preliminary Architectural Feasibility Report, including the Cost Estimate, for the review by the RD Area Loan Specialist and RD State Architect. These two documents are needed to determine the project's feasibility. RD's State Architect will evaluate and provide architectural/construction guidance to the Applicants and their Architects, for RD financed architectural projects, in the following areas: