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     Rural Economic Development Loans and Grants

 Description:

Provides zero-interest loans and grants to Rural Utilities Service borrowers to promote rural economic development and job 
creation projects.

Loan and Grant Purposes:

Funds are passed on to third party borrowers as zero-interest loans for projects that create jobs in rural areas, or that provide 
infrastructure or community facilities in rural areas that will lead to economic stability.

Who Is Eligible?

Rural Utilities Service Electric and Telephone borrowers with outstanding loans, and not delinquent on loans, are eligible.

Other Loan and Grant Criteria:

Applications are scored on job creation potential, sustainability of projects, suitability of project to the area, diversification of 
employment in the area, amount of supplemental funds, relative income, and employment levels.

FY 2009 Allocation

Funding for FY '09 is now available. 

Funds are not distributed to States. All funds are retained in the National Office. Selections are made quarterly based on a National competition.

Applications for FY '09 are due as follows:

3rd quarter - March 31, 2009
4th quarter - June 30, 2009

Loan Amount:

A maximum of $740,000 per loan application may be requested.

Loan Maturity:

Maturity for loans is a maximum of 10 years.

Grant Amount:

A maximum of $300,000 per grant application may be requested to establish a revolving loan fund.

Timeframes for Turnaround

Normal turnaround time is approximately 5 months from initial receipt of an application to a decision on whether a project will be 
funded.

Where Do You Apply?

Individuals may contact their local Rural Development Area Office.