Electric Programs >> Loan Programs
Rural Electrification Loans
Hardship Loans
Municipal Loans
Treasury Loans
FFB Guaranteed Loans
The loan
program information on this page is available in an Adobe Acrobat
PDF file which is available for viewing and download.
Hardship Loans
- Eligible Facilities: Distribution, subtransmission and headquarters
(service & warehouse) facilities
- Eligible Borrowers: Retail providers that meet rate disparity
thresholds and whose consumers fall below average per capita and household
income thresholds or that have suffered a severe, unavoidable hardship,
such as a natural disaster, as determined by the RUS Administrator
- Interest Rate: 5%
- Supplemental Financing Required: No
- Loan Term: Term of loan not to exceed useful life of the
facilities being financed, with a maximum term of 35 years
Municipal Rate Loans
- Eligible Facilities: Distribution, subtransmission and headquarters
(service & warehouse) facilities
- Eligible Borrowers: Retail providers for all facilities;
power supply providers for subtransmission and headquarters facilities
- Interest Rate: Interest rates will be established quarterly
by RUS based on interest rates available in the municipal bond market
for similar maturities and is determined at the time of the advance
- Supplemental Financing Required: Yes (generally 30%) except
in the case of financial hardship as determined by the RUS Administrator
and the first loan following a merger or consolidation
- Loan Term: Term of loan not to exceed useful life of the
facilities being financed, with a maximum term of 35 years. Power
supply borrowers' loan term is also based on the term of its wholesale
power contracts.
Treasury Rate Loans
- Eligible Facilities: Distribution, subtransmission, headquarters
(service & warehouse) and renewable generation facilities
- Eligible Borrowers: Retail providers for all facilities;
power supply providers for renewable generation facilities
- Interest Rate: Interest rates will be established daily by
the United States Treasury and is determined at the time of each advance
- Supplemental Financing Required: No
- Loan Term: Term of loan not to exceed useful life of the
facilities being financed, with a maximum term of 35 years. Power
supply borrowers' loan term is also based on the term of its wholesale
power contracts.
FFB Guaranteed Loans
- Eligible Facilities: Distribution, transmission (bulk and
subtransmission), generation and headquarters (office, service and
warehouse) facilities
- Eligible Borrowers: Retail and power supply providers
- Interest Rate: Interest rates will be established daily by
the United States Treasury. Added to that rate is 1/8 of one percent.
The interest rate is determined at the time of each advance
- Supplemental Financing Required: No
- Loan Term: Term of loan not to exceed useful life of the
facilities being financed, with a maximum term of 35 years. Power
supply borrowers' loan term is also based on the term of its wholesale
power contracts.
Eligible Borrowers
Eligible borrowers are corporations, states, territories,
and subdivisions and agencies thereof, municipalities, people's utility
districts, and cooperative, non-profit, limited-dividend or mutual associations
that provide retail or power supply service needs in rural areas
Rates
Current interest rates for these loan programs
may be found on the Rates page.
Specific language on loan eligibility and terms
can be found in 7 CFR Part 1714.
Loan policies and application procedures can be found in 7 CFR Part 1710.
Additional information about the electric loan
programs and advice on completing and assembling an application are
available from the national office. The Electric Program is divided in two regional divisions: Northern
Regional Division, (202) 720-1420; Southern Regional Division, (202)
720-0848. Power supply borrowers should contact the Power Supply
Division, (202) 720-6436.