USDA Community Facilities Loans
USDA Community Facilities loans serve as crucial financial support that enables the development of infrastructure and services essential for individuals and businesses in rural areas. This specialty rural development loan is part of the USDA OneRD Guarantee Loan Initiative.
What is the USDA Community Facilities Guaranteed Loan Program?
The USDA Community Facilities Guaranteed Loan Program provides loan guarantees to develop essential community facilities in rural areas. An essential community facility is a public improvement, operated as a nonprofit or government entity, needed for the orderly development of a rural community. This includes both physical structures and the resulting services.
USDA Community Facilities Loan Amounts, Rates, and Terms
Whether you’re just getting started or gearing up for another expansion, we give businesses and government entities in eligible rural areas access to loans from the USDA that feature higher loan amounts, flexible repayment terms, and competitive interest rates.
USDA Community Facilities loans are beneficial to many types of rural businesses because of their flexibility and customization options.
Higher Loan Amounts
- Loan guarantees of up to 80%
- $2,000,000 minimum loan limits
- $100,000,000 maximum loan limits
Competitive Interest Rates
- Interest rates are negotiated between the lender and borrower
- Rates may be fixed or variable
- Variable interest rates may not be adjusted more often than quarterly
- Additional fees are applicable
Flexible Repayment Terms
- The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower’s repayment ability
- The loan term will not exceed 40 years
Uses of a USDA Community Facilities Loan
Funds can be used to construct, enlarge, extend, or otherwise improve essential community facilities. Guarantee funds can also be used for refinancing the debt of an essential community facility.
Examples of essential community facilities include:
- Healthcare facilities and services, including but not limited to hospitals.
- Fire, rescue, and public safety facilities and services.
- Community, public, social, educational, or cultural facilities or services.
- Transportation facilities such as streets, bridges, roads, ports, and airports.
- Certain utility projects when not eligible for Rural Utilities Service financing, gas distribution systems, and recycling and transfer centers or stations.
- Telecommunications end-user equipment when related to public safety, medical, or educational telecommunication links when not eligible for Rural Utilities Service financing.
- Water infrastructure facilities such as levees, dams, reservoirs, inland waterways, canals, and irrigation systems.
- Purchase and installation of renewable energy systems for use by an essential community facility (conditions apply).
- Land acquisition and necessary site preparation, including access ways and utility extensions to and throughout an industrial park site.
- Community parks, community activity centers, and similar types of facilities.
Qualifying Entities for the USDA Community Facilities Program
The following are able to take advantage of this beneficial funding:
- Public bodies
- Indian tribes on Federal and State reservations
- Federally Recognized Tribes
- Nonprofit organizations
Frequently Asked Questions
About USDA Community Facilities loans
How do I apply for a USDA Community Facilities loan?
We have a team of lending specialists focused solely on USDA guaranteed loan financing to help you through the USDA OneRD loan application process. We’ll ensure you know which types of projects and expenses qualify, walk you through loan requirements (fees, repayment terms, amounts, interest rates, etc.), and help you gather all the necessary information and paperwork so your loan closes quickly.
What is considered a rural area for the USDA Community Facilities Loan Program?
You or your project must be located in a rural area (not in a city or a town with a population of more than 50,000), have a good credit history, and exhibit sufficient cash flow to support loan repayment, among other criteria to be eligible. You can use the USDA’s Property Eligibility tool to see if your location qualifies. Our USDA loan experts will further help you determine the loan amount you need, and walk you through the entire process, from what you need to do to qualify through the loan application and funding.
Is Greater Commercial Lending a certified lender for the USDA Community Facilities Loan Program?
Yes. GCL is not only an approved lender for USDA Community Facilities loans, but we’ve also been named a USDA Lender of the Year on several occasions. A GCL USDA loan specialist can walk you through the process and also help you explore other USDA business loan programs.