Community Facilities Direct Loan and Grant Program
Stored: Community Facilities Direct Loan and Grant Program
| Type | Program |
|---|---|
| Sponsor Organization | Rural Development |
| Top Organization | Department of Agriculture |
| Creation Legislation | Rural Development Act of 1972 |
| Website | Website |
| Purpose | The Community Facilities Direct Loan & Grant Program provides direct loans and grants to develop essential community facilities in rural areas. It aims to enhance quality of life and economic opportunity in communities with populations up to 20,000 by funding critical infrastructure. |
| Program Start | 1972 |
| Initial Funding | Congressional appropriations |
| Duration | Ongoing |
| Historic | No |
Community Facilities Direct Loan & Grant Program (CFDLGP) is a Department of Agriculture initiative administered by Rural Development that offers affordable direct loans and grants to construct, expand, or improve essential community facilities like health care centers, public safety stations, and educational institutions in rural areas with populations of 20,000 or fewer, enhancing access to vital services across the United States. Supporting public bodies, nonprofits, and tribal governments, it has funded over $2.8 billion in loans and $25.3 million in grants annually by 2025, prioritizing low-income areas with graduated grant scales up to 75% of project costs, driving rural competitiveness and resilience.
Goals
- Enhance rural quality of life by funding essential community infrastructure.[1]
- Support economic development in rural communities with populations up to 20,000.
- Prioritize low-income areas, offering up to 75% grant funding based on need.
Organization
The Community Facilities Direct Loan & Grant Program is sponsored by USDA Rural Development under the Department of Agriculture, operating through a network of state and local Rural Development offices that process applications and oversee funding distribution.[2] Funding comes from Congressional appropriations, with loans and grants managed separately but combinable, supported by a staff handling eligibility, feasibility, and compliance across rural jurisdictions. Interest rates are fixed, varying by community income and size, with terms up to 40 years.
The leader at the Department of Agriculture level is the Under Secretary for Rural Development, currently Justin Maxson (as of February 19, 2025).
History
The Community Facilities Direct Loan & Grant Program was established under the Rural Development Act of 1972, consolidating rural infrastructure efforts to address disparities in essential services following earlier USDA programs.[3] It evolved with amendments like the 1996 Farm Bill, expanding eligibility, and by 2025, it had grown to support thousands of projects, from fire stations to telemedicine hubs, adapting to modern needs like disaster recovery (e.g., 2023 CY grants). Its ongoing role reflects sustained rural investment.
Funding
Initial funding in 1972 came from Congressional appropriations, though specific amounts are not isolated from broader USDA budgets.[4] Funding began in 1972 and continues, with FY 2025 providing $2.8 billion in direct loans and $25.3 million in grants, supplemented by user fees and commercial financing options. There’s no funding end date, with annual appropriations driving projects like a $10 million clinic in 2025.
Implementation
The program is implemented through local Rural Development offices, accepting year-round applications from eligible entities—public bodies, nonprofits, and tribes—for projects like hospitals or libraries, with funds disbursed after feasibility and environmental reviews.[5] It operates with graduated grants (15-75% based on income/population) and loans up to 40 years, ongoing with no end date, supporting rural resilience in 2025.
Related
- Rural Development Guaranteed Loan Program
- Community Facilities Technical Assistance and Training Grant
- Rural Housing Service
External links
- https://www.rd.usda.gov/programs-services/community-facilities/community-facilities-direct-loan-grant-program
- https://www.rd.usda.gov/about-rd - Rural Development overview
- https://www.federalregister.gov/agencies/rural-development - Federal Register notices
- wikipedia:USDA Rural Development
Social media
References
- ↑ "Community Facilities Direct Loan & Grant Program," USDA Rural Development, https://www.rd.usda.gov/programs-services/community-facilities/community-facilities-direct-loan-grant-program, accessed February 19, 2025.
- ↑ "About USDA Rural Development," USDA Rural Development, https://www.rd.usda.gov/about-rd, accessed February 19, 2025.
- ↑ "Rural Development Act of 1972 Overview," Wikipedia, https://en.wikipedia.org/wiki/Rural_Development_Act_of_1972, accessed February 19, 2025.
- ↑ "Community Facilities Funding," USDA Rural Development, https://www.rd.usda.gov/programs-services/community-facilities/community-facilities-direct-loan-grant-program, accessed February 19, 2025.
- ↑ "Application Process," USDA Rural Development, https://www.rd.usda.gov/programs-services/community-facilities/community-facilities-direct-loan-grant-program, accessed February 19, 2025.