USDA Community Facilities Direct Loan and Grant Program

Choose the appropriate state in the drop down menu on the top right of the program website. This will open the state specific page. Tabs at the top of the page will show general program information, forms and resources, and state specific contact information.

The USDA Community Facilities Direct Loan and Grant Program provides direct loans and/or grants for essential community facilities in rural areas. Priority is given to healthcare and public safety projects. Funds may be used to purchase, construct, enlarge, or improve facilities.

Examples of essential community facilities include:

• Healthcare facilities such as hospitals, medical clinics, dental clinics, nursing homes, and assisted living facilities
• Public facilities such as town halls, courthouses, airport hangars, and street improvements
• Community support services such as child care centers, community centers, fairgrounds, and transitional housing
• Public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles, and equipment
• Educational services such as museums, libraries, and private schools
• Utility services such as telemedicine and distance learning equipment
• Local food systems such as community gardens, food pantries, community kitchens, food banks, food hubs, and greenhouses

Applicants may apply for one of three options: the Community Facilities Direct Loan Program, the Community Facilities Grant Program, or a combination of the two.

USDA provides grants to assist in the development of essential community facilities in rural areas and towns with populations up to 20,000. Grants are available to public entities such as municipalities, counties, and special-purpose districts, as well as nonprofit corporations and tribal governments.

Loans are also available to public entities such as municipalities, counties, and special-purpose districts, as well as to nonprofit corporations and tribal governments.

Amount varies. Grants are authorized on a graduated scale. Applicants located in small communities with low populations and low incomes will receive a higher percentage of grants.

Begin the application process by contacting the appropriate USDA Rural Development state office to discuss the project.

The state office will discuss funding options and refer eligible applicants to:

• Apply directly through USDA for grant and/or loan funds
• Contact an organization that has been awarded funding from USDA for the purpose of re-lending to community facilities projects
• Contact approved banks and lenders to apply through a similar, but separate program, the Community Facilities Guaranteed Loan Program

Community Facilities Infrastructure Toolkit