Rural Economic Development Loans and Grants
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
The Rural Economic Development Loan and Grant Programs provide funding for rural projects through local utility organizations. 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.
Eligibility
Eligible Applicants
- Federally Recognized Tribal Government
- Small Business Person
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.
Electric and telephone utilities that have current loans with the Rural Utilities Service (RUS), Rural Telephone Bank loans, or guarantees outstanding and are not delinquent on any Federal debt or in bankruptcy proceedings.
How to Apply
Award Procedure
RBS selects projects to be funded. The funds pass through the RUS utility to rural economic development projects.
Program details & compliance
Description
This program is for projects which promote rural economic development and job creation. Maximum amount of grant is $1.5 million; maximum amount of loan is $2,000,000. Maximum term and interest rates for the Intermediary is 10 years for 0% interest rate.
Mission Categories
Primary: Small Business
Other categories:
Economic Development
Use of Funds
Allowed Uses
This program is for projects which promote rural economic development and job creation.
Matching Requirements
This program requires the grantee to provide supplemental funds in the amount of 20 percent of the RBS application amounts.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements