Community
facilities--such as health care clinics, police and fire stations,
schools and child care centers-- are essential to the quality
of life in any rural community. Through its Community Facilities
Loans, the Rural Utilities Programs of USDA West Virginia
Rural Development is striving to ensure that such facilities
are readily available to all rural Americans. The commitment
of USDA Rural Development to this effort is at the core of
its mission and its promise to help build stronger, more vibrant
rural communities across the nation.
Rural Utilities Programs can make and guarantee loans to
develop essential community facilities in rural areas and
towns of up to 50,000 in population. Rural Utilities Programs
can guarantee loans made and serviced by lenders such as banks,
savings and loans, mortgage companies, which are part of bank
holding companies, banks of the Farm Credit System, or insurance
companies regulated by the National Association of Insurance
Commissioners. Rural Utilities Programs may guarantee up to
90 percent of any loss of interest or principal on the loan.
Normally, guarantees will not exceed 80 percent. Rural Utilities
Programs can also make direct loans to applicants who are
unable to obtain commercial credit. |
How
May Funds Be Used?
Who May Apply?
What Are The Terms?
What Is The Interest Rate?
What Security Is Required?
Related
Info: National
Community Facilities Page
Contact
Info:
Randy Plum
(304)
284-4860
Paula Moeller
(304)
284-4888
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How
May Funds Be Used?
Loan funds may be used to construct, enlarge, or improve community
facilities for health care, public safety, and public services.
This can include costs to acquire land needed for a facility, pay
necessary fees, and purchase equipment required for its operation.
Examples of essential community facilities include:
Health Care: Clinics, ambulatory care centers,
hospitals, rehabilitation centers, and nursing homes.
Telecommunications: Medical and educational telecommunication
links.
Public Safety: Communications centers, police and
fire stations, fire trucks, rescue vehicles, and jails.
Public Services: Adult and child care centers,
city halls, courthouses, airports, garages, off-street parking
facilities, sidewalks, street improvements, college classrooms
and dormitories, libraries, museums, schools, fairgrounds, and
animal shelters.
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Who
May Apply?
Loans and guarantees are available to public entities such as municipalities,
counties, and special-purpose districts, as well as to nonprofit
corporations and tribal governments.
In addition, applicants must have the legal authority to borrow
and repay loans, to pledge security for loans, and to construct,
operate, and maintain the facilities. They must also be financially
sound and able to organize and manage the facility effectively.
Repayment of the loan must be based on tax assessments, revenues,
fees, or other sources of money sufficient for operation and maintenance,
reserves, and debit retirement.
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What
Are The Terms?
The maximum term for all loans is 40 years. However, the repayment
period is limited to the useful life of the facility or any statuary
limitation on the applicant's borrowing authority.
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What
Is The Interest Rate?
Interest rates for direct loans are based on current market yields
for municipal obligations, although loans for facilities impacting
prime or unique farmland may require a slightly higher rate. Certain
other direct loans may qualify for a lower interest rate, depending
upon the median household income of the residents of the community
to be served. The interest rates for guaranteed loans may be fixed
or variable and are determined by the lender and borrower, subject
to Rural Utilities Programs review and approval.
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What
Security Is Required?
Bonds or notes pledging
taxes, assessments, or revenues will be accepted as security if
they meet statutory requirements. Where State laws permit, a mortgage
may be taken on real and personal property. Tax-exempt notes or
bonds may be issued to secure direct loans, but cannot be used for
guaranteed loans.
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