Special emphasis is given to projects serving Native American communities, Empowerment Zones and Enterprise and Champion Communities.  

Purpose:  To assist rural communities with populations of 20,000 or less to purchase, construct or renovate facilities that are essential to developing and sustaining the vitality of rural communities. Equipment may also be purchased under this program. Assistance is primarily through a low interest long-term loan with limited grant funds available.

Who is Eligible To Apply?  Political subdivisions of the State such as Boroughs, Cities, Port Authorities, etc., community based Non-Profits, and federally recognized Alaska Native Tribes.

Examples of Eligible Projects: Clinics, Public Safety Buildings, Roads, Alcohol and Substance Abuse Centers, Student Living Centers, Animal Shelters, Fire Stations, Fire Trucks, Ambulances, Computers, Mental Health facilities, Libraries and other essential facilities. The key is that it provides essential community services and be a facility that is typically provided by local government or a community based organization for the benefit of the community.

Guaranteed Loan Program: The guaranteed loan program provides a guarantee to a lender who would not otherwise be willing to lend on a project. The USDA Rural Development Guarantee reduces risk to the lender and can oftentimes persuade a lender to offer a longer term then would normally be extended, thereby making the loan payments more affordable. The applicant works directly with the lender of their choice. The lender works with USDA Rural Development to obtain the guarantee. If you are interested in this program you should approach your lender of choice and request a USDA Rural Development Guaranteed Community Facilities Loan. If the lender is unfamiliar with our program please ask them to contact us and we will be happy to assist.

Direct Loan Program: USDA Rural Development also has a "direct" loan program with very low rates that offers long term financing (up to 40 years or the economic life of the facility, whichever is less). The ability to finance at low rates over a long term often makes a loan that would not be affordable under commercial financing affordable. A down payment is not required; we can loan up to 100% of the value. Communities may use the monies received from either loan program as their required match for other federal dollars. To be eligible for a direct loan, the applicant must provide evidence conventional financing at reasonable rates and terms through a lender or bond bank is not available or is not within the applicant’s ability to repay.

Grants: USDA Rural Development has a limited grant program offered on a regular basis. The amount of these grants is usually under $50,000 and paired with a loan. A non-federal match is required. The amount of grant assistance is determined by the population where the facility is located and the median household income of the service area. In the past two fiscal years, Congress appropriated additional money for the grant program for areas experiencing severe economic depression and unemployment. The continuance of this program is dependent on congressional appropriation for each fiscal year.

When and how to apply: Applications may be made at any time. Applications received earlier in the fiscal year are more likely to receive funding. You should call the office nearest your area and apply there. A link to our field offices is at the bottom of this page.

Which projects are most likely to receive funding? Projects that are supported by and included in a community plan and have the full support of the community. Projects that clearly show sustainability. Health and Safety projects will receive priority. Projects must be modest in design and appropriately sized for the community.

The following links will provide you with points of contact and office locations in other parts of Alaska.

Bethel    Dillingham    Fairbanks    Kenai    Nome    Sitka