Community Facilities (CF) Direct Loans and Grants
ORGANIZATIONS INTERESTED IN CF DIRECT LOANS AND/OR GRANTS
The CF direct loan program provides loans to public bodies, nonprofit corporations, and
Indian tribes for the development of essential community facilities for public use in
rural areas and towns with a population of 20,000 or less. This type of loan may be made
to an eligible public body, nonprofit corporation, or Indian tribe which (a) can
demonstrate its inability to finance the proposed project from its own resources or from
commercial credit at reasonable rates and terms, (b) has authority to develop, own, and
operate the proposed facility, and (c) can legally borrow money and make payments on debts
obligated.
Under the CF grant program, grants may be made to public bodies and nonprofit
organizations to assist in the development of essential community facilities for public
use in small, poor, and needy communities. Grants may be made for up to 75 percent of the
cost to develop the project. Priority is given to applications received from applicants
located in and serving rural areas and towns with populations of 5,000 or less and where
the median household income of the population to be served by the proposed facility is
below the higher of the poverty line or 60 percent of the State nonmetropolitan median
household income. Grant funds are highly competitive and are based on a priority selection
process.
CF direct loans and/or grants can be made in combination with CF guarantees.
Applications are processed and funded at the Rural Development State or local office where
the project is located.
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