Community Facilities Loans and Grants


To construct, enlarge, extend, or otherwise improve community facilities providing essential services to rural residents.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Rural Housing Service, Department of Agriculture
Type(s) of Assistance Offered
B - Project Grants; E - Direct Loans; F - Guaranteed/Insured Loans
Program Accomplishments
Not applicable.
Consolidated Farm and Rural Development Act, as amended, Section 306, Public Law 92-419, 7 USC 1926, Consolidated and Further Continuing Appropriations Act, 2013, Public Law 113-6
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
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.
Beneficiary Eligibility
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. An environmental impact assessment is required for this listing. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." 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 to be followed in applying for assistance, if the State has selected the program for review. 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.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 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.
Award Procedure
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.
Not applicable.
Approval/Disapproval Decision Time
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.
Not applicable.
How are proposals selected?
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.
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
Not applicable.
Periodic audits should be made as part of the recipient's system of financial management and internal control to meet terms and conditions of loans and other agreements.
The borrower must maintain adequate records and accounts of the operation of the facility developed.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching is voluntary. Matching funds are not required but may be used in connection with the funds provided from the applicant or other sources. Funds are allocated to States based upon rural population, number of households below the poverty level, and rural unemployment. The statistical factor for eligibility is cities, towns or incorporated areas under 20,000 population for direct and guaranteed loans and 20,000 population for grants. The source is "Latest Decennial Census." Grants are limited to a maximum of 75 percent of project cost.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
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. See Above
Who do I contact about this opportunity?
Regional or Local Office
Consult your local telephone directory under U.S. Department of Agriculture for Rural Development county or Area office numbers or visit the website for a State Office listing.
Headquarters Office
Jamie Davenport
1400 Independence Ave SW
Washington, DC 20250 US
Phone: 2027200002
Website Address
Financial Information
Account Identification
(Project Grants) FY 22$446,786,036.00; FY 23 est $350,300,000.00; FY 24 est $86,745,000.00; - (Direct Loans) FY 22$1,308,740,669.00; FY 23 est $2,800,000,000.00; FY 24 est $2,800,000,000.00; - (Guaranteed/Insured Loans) FY 22$238,287,812.00; FY 23 est $650,000,000.00; FY 24 est $650,000,000.00; -
Range and Average of Financial Assistance
2022 Direct Loans ranged from $9,000 to $86,599,000. Average: $4,512,898. Guaranteed Loans ranged from $437,000 to $52,579,000. Average: $9,164,915. Grants ranged from $2,100 to $10,000,000. Average: $284,940.
Regulations, Guidelines and Literature
7 CFR 1942, subpart A, Community Facilities Loans; 7 CFR 1942, subpart C, Fire and Rescue Loans; 7 CFR 5001, Guaranteed Loans; 7 CFR 3570, subpart B, Community Facilities Grants.
Examples of Funded Projects
Not applicable.


Related Federal Grants

Federal Grants Resources