Presentation: Community Facilities Direct
Loans and Grants
Rural Development
Community Facilities Direct Loans and Grants
(USDA Rural Development Community Programs)
Essential Community Facilities
- Serves the local community
- Needed for the orderly development of community
- May not include private or commmercial undertakings
Eligible Areas
- Must be located in a rural area
- Population of 20,000 or less
- Cities
- Towns
- Unincorporated areas
Eligible Organizations
- Public Bodies
- Federally-Recognized Indian Tribes
- Non-Profit Corporations
Significant Community Support
- Broadly-based board representing the community served
- Public funding through taxes, fund raising, etc.
- Support by local public body
Legal Authority
- Must be able to own, operate, construct & maintain facility
- Legal ability to incur & repay debt
Test for Other Credit
- Unable to obtain credit elsewhere
- Reasonable rates and terms
Community Facilities (CF) Direct Loan
Loan Terms
- Useful life of the facility
- Maximum 40 years
- No Balloon payments
- Subject to State Limitations
CF Direct Loan Interest Rates
- Rates adjusted quarterly
- Tied to Bond Buyer Index
- Interest rates:
- Poverty
- Intermediate
- Market
CF Direct Loans
- FY 2006, we provided 574 CF direct loans for over $394 million.
- FY 2006 – Average loan size - $686,882.
- In FY 2007, we have $297 million in CF Direct loan program authority.
CF Grants
- Feasibility analysis completed to determine need
- Primary used for Equipment purchases
- Grant determination – sliding scale based on population
and MHI
CF Grants
- In FY 2006 – 563 CF grants made for over $17.9 million
- In FY 2006, average size grant $31,956
- In FY 2007, we have $17.9 million in grant authority
Special Initiative: Economic Impact Initiative Grants
- $17 million available in FY 2007
- Areas with extremely high unemployment & economic depression
Community Facilities - FY 2007 Appropriations
- Direct Loans: $297 Million
- Grants: $17 Million
Community Facilities Projects
Project categories in FY 2006:
- Health Care
- Public Safety
- Educational
- Public Facilities
- Other
Health of the CF Direct Loan Portfolio
- Total Outstanding Direct Loan
- Portfolio: $2.3 Billion
- Borrowers: 3,422
- Loans: 4,898
- Delinquency Rate: 2% (as of 3/30/07)
Application Process
- Applicants submits pre-application to RD field office.
- Contact field office: http://www.rurdev.usda.gov
(Click on State Office for address & phone number)
Types of Projects Financed
Examples of Health Care Facilities Financed
- Hospitals
- Assisted Living
- Nursing Homes
- Clinics
- Office Buildings (Health Care)
Examples of Public Safety Facilities Financed
- Fire Stations
- Fire Trucks
- Ambulances
- Police Stations
- Rescue and Ambulance Buildings
Examples of Educational Facilities Financed
- Public Schools
- Charter School
- Colleges
- Library
- Vocational Schools
Examples of Other Facililties Financed
- Child or Adult Day Care
- Homeless Shelters
- Domestic Violence Shelter
- Community Centers
- Office Buildings
CF Contact
Chad Parker
Mail Stop 0787
1400 Independence Avenue
Washington, DC 20250
Telephone: (202) 720-1502
Email: chad.parker@wdc.usda.gov
Website: http://www.rurdev.usda.gov
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