Community Facilities Programs
The mission of Rural Business and Cooperative Programs is to enhance the quality of life for all rural Americans by providing leadership in building competitive businesses and cooperatives that can prosper in the global trading marketplace.
Business and Industry Guaranteed Loans (B&I). The Business and Industry (B&I) Guaranteed Loan Program provides guarantees on loans to improve, develop or finance business, industry, and employment, and to improve the economic and environmental climate in rural communities including pollution abatement and control. The purpose is achieved through bolstering the existing private credit structure through the guaranteed of quality loans which will provide lasting community benefits. This assistance is available to businesses located throughout North Dakota, with the exception of Fargo/West Fargo and Bismarck/Mandan, at this time. Eligible entities include corporations, partnerships, cooperatives, Federally recognized Indian Tribes, individuals, and other legal entities. Generally, authorized lenders include federal or state chartered banks, credit unions, insurance companies, savings and loan associations, Farm Credit Banks, or other Farm Credit System institutions. There is no minimum loan, and the state currently can approve loans up to $5 million. B&I Guaranteed Loan Program fact sheet. Information for filing a pre application. Information for filing for an application. More detailed information on this program can be obtained from the national site: http://www.rurdev.usda.gov/rbs/busp/b&i_gar.htm
Intermediary Relending Program (IRP). The purpose of the Intermediary Relending Program (IRP) is to finance business facilities and community development projects in rural areas. This is achieved through loans made by Rural Development to intermediaries. Intermediaries establish revolving loan funds so that collections from loans made to ultimate recipients, in excess of necessary operating expenses and debt payments, will be used for more loans to ultimate recipients. Intermediaries may be private non-profit corporations, public agencies, Indian groups, or cooperatives. More detailed information on this program can be obtained from the national site: http://www.rurdev.usda.gov/rbs/busp/irp.htm
Rural Business Enterprise Grants (RBEG). USDA Rural Development makes grants to finance and facilitate development of small and emerging private business enterprises in rural areas, or cities up to 50,000 population, with priority to applications for projects in rural communities of 25,000 and smaller, and economically distressed communities. Non federal leveraging of funds and job creation are also key in consideration for this grant program. Grants are made to public bodies (cities) private non-profit corporations, and Federally recognized Indian Tribal groups. Grant funds do not go directly to the business. Uses of funds include: technical assistance (providing assistance on complete marketing studies, feasibility studies, business plans, training, etc.) to start a small and emerging business; purchase machinery and equipment; create a revolving loan fund, or construct a building. RBEG Program Fact Sheet. More detailed information on this program can be obtained from the national site: http://www.rurdev.usda.gov/rbs/busp/rbeg.htm
Rural Energy for America Program (REAP). This program will help farmers, ranchers and rural small businesses reduce energy costs and consumption and help the nation meet its energy needs. The program will also help support and stimulate rural economic development by helping agricultural producers and rural small businesses create new sources of income, to create new jobs, and to create new uses for agricultural products and wastes. For more information, click here.
The following is a summary of Community Facility programs:
Community Facility Loans (CF)
Purpose: To construct, enlarge, extend, or otherwise improve community
facilities providing essential services in rural areas and towns with a
population of 20,000 or less. Loans can be made for developing and improving
health care, public safety, and public service facilities. The funds are
available to public entities such as municipalities, counties, special-purpose
districts, Indian tribes, and corporations not operated for profit. Rural
Development also guarantees community facility loans made by banks or other
eligible lenders. Guaranteed Loan Fact Sheet.
More detailed information on this program can be obtained from the national
site: http://www.rurdev.usda.gov/rhs/cf/CFG/CFG_Overview.html
Loans for Child Care (CF)
Purpose: Rural Development is authorized to make direct loans and to
guarantee loans made by eligible lenders to eligible borrowers in rural areas
and in towns of population up to 20,000 for essential community facilities such
as child care facilities.
Loans For Fire And Rescue (CF)
Purpose: Fire and rescue direct loans and lender guarantees are
authorized for eligible borrowers in rural areas and towns up to 20,000
population. Fire and Rescue Fact Sheet.
Grants for Community Facilities (CF)
Purpose: Grants to construct, enlarge, extend, or otherwise improve
essential community facilities to communities of less than 20,000 population. Loan
and Grant Fact Sheet.
Community Facilities Guaranteed Loan ProgramCommunity Facilities Guaranteed Loan Program Lender's Handbook
More detailed information on these programs can be obtained from the national site:
Loans: http://www.rurdev.usda.gov/rhs/cf/brief_cp_direct.htm
Grants: http://www.rurdev.usda.gov/rhs/cf/brief_cp_grant.htm
Please send any comments or suggestions to:
jane.grant@nd.usda.gov