Community Facilities Direct Loan & Grant Program
Links: Sam.gov listing; USDA program page
This program provides affordable funding to develop essential community facilities in rural areas through grants and loans.
Average award: Grant – $93,504 in FY2021; Loan –
$4,364,049 in FY2021
Number of awards: Grants – 1,010 in FY2021;
Loans – 262 in FY2021
Cost share/matching required: No; however, program will not cover total project costs
Deadline: N/A
Expected Award Cycle: Continual
Applications are accepted on a continual basis.
The Community Facilities and Direct Loan & Grant program provides funding and financing to develop essential community facilities in rural areas. Funds can be used to purchase, construct, and/or improve facilities, purchase equipment, and pay related project expenses. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial, or business undertakings. Examples of essential community facilities that may be relevant to charter schools include libraries, charter and private schools, health and dental clinics, community childcare centers, distance learning equipment, community gardens, greenhouses, community kitchens, and food pantries.
Support is made as grants, low interest direct loans, a combination of loans and grants. These may be combined with commercial financing if all eligibility and feasibility requirements are met. In FY2021, support amounts were as follows:
- Direct Loans ranged from $6,000 to $336,200,000, with an average loan of $4,364,049.
- Grant awards ranged from $1,800 to $2,439,500, with an average award of $93,504.
Funding priorities include facilities in communities with a population of 5,500 or fewer and communities with a median household income below 80% of the state nonmetropolitan median household income. Grant assistance limits are provided on a graduated scale based on community size and income characteristics:
Grant Assistance Limits: Federal Share of Eligible Project Costs
Up to 75%
The proposed project is in a rural community having a population of 5,000 or fewer and the median household income is below either the federal poverty line or 60% of the state nonmetropolitan median household income.
Up to 55%
The proposed project is in a rural community having a population of 12,000 or fewer and the median household income of the proposed service area is either below the federal poverty line or 70% of the state nonmetropolitan median household income.
Up to 35%
The proposed project is in a rural community having a population of 20,000 or fewer and the median household income of the proposed service area is either below the poverty line or 80% of the state nonmetropolitan median household income.
Up to 15%
The proposed project is in a rural community having a population of 20,000 or fewer and the median household income of the proposed service area is either below the federal poverty line and 90% of the state nonmetropolitan median household income.
Note: This program previously included a loan guarantee option; this is now separately managed as the Community Facilities Guaranteed Loan Program.
Eligible applicants include public bodies, community based nonprofits, and federally recognized Tribes. Eligible areas for funds use are rural areas including cities, villages, towns, townships, and federally recognized Tribal lands with no more than 20,000 residents as determined by the U.S. Census data. The grants can cover up to 75% of eligible project costs based on population and median household income of the population to be served.
- A $39,000,000 loan to the Foundation for Education Inc. (Denver, NC) to expand and renovate the Lincoln Charter School, providing an additional 29,450 square feet of permanent structures for middle and high school facilities and 53,335 square feet for elementary students.
- A $10,600,600 loan to Pioneer Valley Chinese Immersion Charter School (Hadley, MA) to finance a school addition expanding the school to 68,205 square feet and enrollment capacity to 584 students.
- A $342,000 loan and $50,000 grant to Wayne Highlands School District (Honesdale, PA) to construct a greenhouse for an aquaponics system adjacent to the school. It will support local producers and help expand agricultural productivity in Wayne County.
Requirements vary by state and preapplication coordination is required. Potential applicants should contact a Community Programs Specialist at their local Rural Development office to discuss the project and application (see link below).
A listing of local offices is provided online: www.rd.usda.gov/contact-us/state-offices.