The Rural Business-Cooperative Service is seeking applications for its Rural Economic Development Loan and Grant program to provide funding for rural projects through local utility organizations.
Donor Name: Rural Business-Cooperative Service
State: All States
County: All Counties
Type of Grant: Grant
Deadline: 06/30/2023
Size of the Grant: $300,000
Details:
USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility then is responsible for repayment to USDA.
USDA provides grants to local utility organizations which use the funding to establish Revolving Loan Funds (RLF). Loans are made from the revolving loan funds to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to USDA.
Who may apply to this program?
- To receive funding (which will be forwarded to selected eligible projects), an entity must be:
- A former Rural Utilities Service borrower who borrowed, repaid or pre-paid an insured, direct or guaranteed loan.
- Nonprofit utilities that are eligible to receive assistance from the Rural Development Electric or Telecommunication Programs.
- Current Rural Development Electric or Telecommunication Programs borrowers.
What is an eligible area?
- Intermediaries may use funds to lend for projects in rural areas or towns with a population of fewer than 50,000 residents.
How much funding is available to local utilities?
- Up to $300,000 in grants may be requested to establish the Revolving Loan Funds.
- Up to 10 percent of grant funds may be applied toward operating expenses over the life of the Revolving Loan Fund.
- Up to $1.5 million in loans may be requested.
The local utility applies to USDA for funding support on behalf of specified local projects. Projects may begin after an application is submitted, but there is no guarantee of approval. USDA funds are issued to the local utility at project completion.
What are the terms for the local utility?
- 10 years at 0 percent interest.
- Grants require a 20 percent match from the local utility.
- Grants must be repaid to USDA upon termination of the Revolving Loan Fund.
How may funds be used?
- The local utility passes the funding to ultimate recipients for such eligible projects as:
- Business incubators.
- Community development assistance to nonprofits and public bodies (particularly for job creation or enhancement).
- Facilities and equipment to educate and train rural residents to facilitate economic development.
- Facilities and equipment for medical care for rural residents.
- Start-up venture costs, including, but not limited to, financing fixed assets such as real estate, buildings, equipment or working capital.
- Business expansion.
- Technical assistance.
For more information, visit Grants.gov.
