Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(1) and 7 U.S.C. 1926(a)(19))
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.
Discretionary; Subsidy; Loan or Loan Guarantee; Other-Loan/Grant Combinations
Applications accepted year-round
:$2,800,000,000 Direct Loans and $36,100,286 Grants
Yes. Dependent on population
Community Facilities (CF) Direct Loan and Grants allow for other Federal funds to meet cost-sharing or matching funds requirements if allowable by the other Federal program. Likewise, CF funding may be used as complementary funding or “matching funds” for other Federal programs, if allowable by the other Federal program.
Eligible borrowers and grantees include public bodies, non-profits, and Federally-recognized Tribes. Eligible facilities must be located in rural areas with a population of 20,000 or fewer inhabitants. See 7 CFR Part 1942, Subpart A and 7 CFR Part 3570, Subpart A for additional requirements.
Eligible grant recipients must be located in a rural area with a population of 20,000 or fewer inhabitants and a project service area with median household income (MHI) of 90 percent or less of statewide nonmetropolitan MHI. Grant assistance is provided on a graduated scale. Smaller communities with the lowest MHI will be eligible for projects with a higher proportion of grant funds, up to 75 percent of total project costs.
N/A – no publicly-available programmatic data specific to broadband
For more information, contact your local Rural Development State Office: https://rd.usda.gov/about-rd/state-offices.
The Community Facilities Direct Loan Program Guidance Book for Applicants offers a step by step guide to help Applicants apply for a Community Facilities Direct loan. This guide book outlines the application process, financial feasibility requirements, construction and closing of an essential community facility for small towns and rural areas.