Predevelopment Planning Grants

Purpose: Predevelopment planning grants may be available, if needed, to assist in paying costs associated with developing a complete application for a proposed project

Eligibility: The applicant must meet the eligibility requirements of Part 1780.7 of RUS Instruction 1780. The median household income of the proposed area to be served by the project must be either below the poverty line or below 80 percent of the statewide non-metropolitan median household income. The eligible predevelopment items funded with these grant funds must be agreed to and accepted by the Agency prior to disbursement of the predevelopment planning grant. Applicant must provide financial information to document that they do not have the resources to pay predevelopment expenses on their own. Grants are limited to projects the Agency expects to fund soon after the application is submitted. PPG costs are those necessary expenses to be incurred to develop a complete application and are limited to eligible grant purposes.

Requirements: State Directors are authorized to make PPG up to $15,000 or 75 percent of the project costs, whichever is less. Funding for the balance of the eligible project costs not funded by the PPG must be from applicant resources or funds from other sources. PPG funds advanced will be considered when calculating the amount of loan and grant funding needed, and will be subtracted from the total grant eligibility, if the Agency provides additional funds for a portion of the project. PPG funds cannot be used to pay for work already completed. If the Agency does not provided additional funds for any portion of the project, the grant will not require repayment.

Basic Instruction: RUS Instruction 1780 andRUS Staff Instruction 1780-5

Where to apply: Applications are accepted at any time through our Rural Development State and Area Offices. To locate an office near you go to http://www.rurdev.usda.gov/recd_map.html