Community Facilities Loan and Grant Program January 1, 2024
The attached Exhibit A lists the many kinds of projects that can be financed with Community Facilities funds. Guaranteed Loans - As negotiated by private lender and applicant and determined by Rural Development to be reasonable and customary. May be a fixed or variable rate. Direct Loans - Three categories* Interest Rates:
FINANCING OF ESSENTIAL FACILITIES FOR RURAL COMMUNITIES, THROUGH PUBLIC BODIES OR NON-PROFIT CORPORATIONS. Rural Development a mission area of the United States Department of Agriculture (USDA) administers the Community Facilities loans and grants. The loan program is designed to help construct, enlarge, extend, or otherwise improve community facilities providing essential services in rural areas and towns. Guaranteed Loans and Direct Loans are available. Grant funds may be used to supplement other Community Facilities financial assistance (direct or guaranteed loans), applicant contribution, or loans and grants from other sources. Any city, town, or unincorporated area with a population of 20,000 inhabitants or less, other than an urbanized area immediately adjacent to a city, town, or unincorporated area with a population in excess of 20,000 residents, shall be considered "rural" or a "rural area" for the purposes of determining eligibility for Community Facilities loan/grant program assistance. To qualify applicants must be unable to obtain the financing from other sources and/or their own resources at rates and terms they can afford. Public bodies, nonprofit corporations, associations and federally recognized Indian Tribes can be eligible applicants. Loan funds can be used for construction, land acquisition, legal fees, engineering fees, capitalized interest, equipment, initial operation and maintenance costs, project contingencies, and any other cost that is determined by Rural Development to be necessary for the completion of the project. Grant funds can be used for equipment and equipment-type projects.
Present Interest Rates:
Market ...................... 3.750 percent Intermediate ............. 4.125 percent Poverty ..................... 4.500 percent Effective from October 1, 2023 until December 31, 2023 all direct CF loans will be approved at the market rate since it is the lowest interest rate available. Market Rate - Available to applicants whose Median Household Income (MHI) of service area is greater than the non-metropolitan MHI of Georgia ($47,799). Intermediate Rate - Available to applicants whose MHI is not more than the non-metropolitan MHI ($47,799) of Georgia and who otherwise do not qualify for the poverty rate. Poverty Rate - Available to applicants whose MHI is either below the latest established nationwide poverty level MHI ($30,000) or below 80 percent of the non-metropolitan MHI of Georgia (80% of $47,799 = $38,239) and there are existing health/sanitation conditions that would be alleviated with the proposed project so as to comply with
* Two percent increase in interest rate may be assessed when project is built on prime farmland. This can be waived for public bodies when there are no suitable alternate sites.
USDA is an equal opportunity provider, employer, and lender.
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