USDA Rural Development Summary of Major Programs

Together, America Prospers

USDA Rural Development at a Glance

Rural America’s Partner in Prosperity WE HAVE MORE THAN USDA Rural Development is the lead Federal agency helping rural communities grow and prosper. We 40 PROGRAMS TO SUPPORT increase economic development and improve the RURAL AMERICA. quality of life in rural places and small towns.

We provide loans, grants and technical assistance Telecommunications Programs to build critical infrastructure like broadband, water systems, and hospitals. Our programs expand access to e-connectivity, electric, and transportation infrastructure, and support business growth, healthcare, education, housing, and other community essentials. Electric Programs

We stand ready to be your partner in prosperity for rural America. Contact us today to learn more and connect with the local USDA Rural Development team that Community Facilities Programs serves your area:

www.rd.usda.gov Water and Environmental Programs

1 (800) 670-6553

@usdaRD Business and Cooperative Programs

Contact the USDA Rural Development Office in your community to learn more Single-Family Housing Programs

Multi-Family Housing Programs

3 4 USDA Rural Development Summary of Major Programs Rural Housing and Community Facilities Programs Program Objective Applicant Uses Population Loan/ Terms/Conditions Grant Single-Family Safe, well-built, Families and Buy, build, improve, Rural areas with Direct loan. Up to 100% of market Housing Direct affordable homes individuals. repair or rehabilitate populations up to value or cost. Loan term Loans (including for very-low- and a rural home as the 20,000 (in special of 33/38 years. Applicant low-income rural applicant’s permanent may be eligible for payment Self-Help Loans) circumstances, Americans. residence. communities up to assistance (subsidy) on 35,000 may be eligible). the loan. Single-Family To help low- to Families and Purchase new or Rural areas with Loan 30-year fixed. The interest Housing Loan moderate-income individuals. existing homes and populations up to guarantee. rate is negotiated between Guarantees applicants/households refinance existing 20,000 (in special lender and borrower. Loans buy their homes by Rural Development circumstances, up to 100% of market guaranteeing loans guaranteed or direct communities up to value, plus the amount of made by private loans. 35,000 may be eligible). the up-front guarantee fee lenders. being financed. Single-Family To help very-low- Families and Repair/replace roof, Rural areas with Direct loan Loans up to $20,000 for up Housing Repair income applicants individuals who winterize, purchase or populations up to and grant. to 20 years at 1%. Grants Loans and remove health and currently own their repair heating system, 20,000 (in special available to very-low-income safety hazards or home. structural repair, water/ applicants ages 62 years Grants circumstances, repair their homes. sewage connect fees, communities up to or older unable to pay a etc. 35,000 may be eligible). 1% loan. Self-Help Helps lower income Nonprofits and Technical assistance Rural areas with Grant. Grant agreement. Housing families build their public bodies. to train small groups populations up to Technical own homes. of families how to build 20,000 (in special each others’ homes. Assistance circumstances, communities up to Grants 35,000 may be eligible). Rural Rental Safe, well-built, Individuals, trusts, Rental housing; Rural areas with Direct loan. Up to 100% of total Housing Direct affordable rental associations, limited new construction populations up to development cost Loans housing for very-low- partnerships, for-profit or substantial 20,000 (in special (nonprofits); 97% (for-profits); income individuals and nonprofit entities, rehabilitation. circumstances, 95% (for-profits with and families. Federally-recognized communities up to Low-Income Housing Tax Indian Tribes, 35,000 may be eligible). Credits). 30-year term with public bodies. up to 50-year amortization. Rural Rental Guarantees on For-profit and Build or rehabilitate Rural areas with Loan At least a 25-year term with Housing Loan loans to build or nonprofit lenders. affordable rental populations up to guarantee. fixed interest rate. Loan Guarantees preserve affordable housing. 20,000 (in special guarantees on up to 90% housing for very-low circumstances, of the principal. to moderate-income communities up to tenants. 35,000 may be eligible). Housing Repair and Public bodies To operate a program Rural areas with Grant. Grant agreement. Preservation rehabilitate housing and nonprofit that finances repair and populations up to Grants owned or occupied organizations. rehabilitation activities 20,000 (in special by very-low- and low- for single-family and circumstances, income small rental properties. communities up to rural families. 35,000 may be eligible). Farm Labor Safe, well-built Individuals, public Rental housing; Not applicable. Direct loan Up to 102% of total Housing Loans affordable rental and private nonprofit new construction and grant. development cost. Up to and Grants housing for organizations. or substantial 33 years to repay at 1% farmworkers. rehabilitation. interest. Community Improve, develop, Public bodies, Construct, enlarge, City, town, or Direct Up to 100% of market value. Facilities Loans or finance essential nonprofits, and or otherwise improve unincorporated area of loan, loan Term is for the useful life of and Grants community facilities Federally-recognized essential community not more than 20,000 guarantee, the facility or equipment, for rural communities. Indian Tribes. facilities such as public for direct loans. For or grant. based on State statute, or Facilities must safety, fire and rescue, loan guarantees, not 40 years. Maximum grant primarily serve rural telecommunications, more than 50,000. 75% of project cost. Grant residents. schools, libraries, Loan guarantee funds eligibility based on income, hospitals and other are prioritized in favor population, and need. healthcare facilities, of towns with etc. This may include populations of 20,000 furnishings, fixtures, or less for fiscal year and other required 2020. equipment. Rural To facilitate housing, Private nonprofit or Technical assistance City, town, or Grant. Matching funds Community community facilities, public organizations, grants of $50,000 to unincorporated area of required for grant. Development and community philanthropic $300,000 to develop not more than 50,000 and economic foundations, low- the capacity and ability in population. Initiative development projects. income communities. of awardees to carry out needed projects.

For direct loans and grants, apply to Rural Development. For loan guarantees, apply to participating intermediaries such as approved banks, mortgage companies, etc. 5 6 Rural Business and Cooperative Programs Program Objective Applicant Uses Population Loan/Grant Terms/Conditions Business and Create jobs/stimulate Lenders/ Real estate, buildings, All areas except Loan Lender and borrower Industry Loan rural economies by businesses. equipment, supplies, cities with populations guarantee. negotiate terms. Up to 30 Guarantees providing financial working capital, and exceeding 50,000 years for real estate, 15 backing for rural some debt refinancing. and their contiguous years for machinery and businesses. urbanized areas. equipment, and 7 years for working capital.

Rural Business Help small and Public bodies, Acquire or develop All areas rural in Grant. Grants are awarded on a Development emerging private government land, buildings, plants, character except competitive basis. Grants businesses and/or entities, nonprofit and equipment; build or cities with populations nonprofits in rural entities, and improve access roads, exceeding 50,000 communities startup Federally- parking areas, utility and their contiguous or expand. recognized Indian extensions, and water urbanized areas. Note: This program Tribes. and waste disposal combines the former facilities; provide Rural Business technical assistance; Enterprise Grant establish revolving loan and Rural Business funds; and support Opportunity Grant rural distance learning programs and was programs that provide created through the educational or job 2014 Farm Bill. training. Intermediary Establish revolving Public bodies, Community development Rural areas and Direct loan. The intermediary makes Relending funds for business nonprofit projects, establish or incorporated places loans to businesses Program Loans facilities and corporations, expand businesses, with populations of from its revolving loan community Federally- create or save rural jobs. fewer than 50,000. fund on terms consistent development recognized with security offered. projects. Indian Tribes, and Intermediary pays 1% for cooperatives. 30 years.

Rural Establish revolving Microenterprise Loans, technical, All areas except Loans, grants. Rural microenterprises Microentrepreneur funds to target Development and capacity- cities with populations apply directly to the Assistance assistance to small Organizations building assistance to exceeding 50,000 intermediary. rural enterprises. (MDOs). businesses with 10 or and their contiguous Program fewer employees, and urbanized areas. sole proprietorships.

Rural Economic Finance economic Rural Utilities Business startups or Rural areas with Direct loan Intermediary makes loans Development development and Service-financed expansion projects that populations of or grant to to for-profit or nonprofit Loans and Grants job creation in electric and create rural jobs. 50,000 or less, with establish businesses and public rural areas. telephone utilities. priority to places revolving loan bodies. Loans are 0% for with populations of fund. 10 years. 2,500 or less.

Rural Cooperative Establish/ Nonprofits and Establish centers to All areas except Grant. Minimum 25% fund match Development operate centers institutions of provide technical cities with populations (5% for 1994 Institutions). Grants for cooperative higher education. assistance, training, exceeding 50,000 Grants awarded development. applied research, and and their contiguous competitively. data collection and urbanized areas. interpretation for the purpose of cooperative development.

Socially- Funds to eligible Cooperatives Technical assistance. All areas except Grant. Grants are awarded on a Disadvantaged co-ops, co-op and co-op cities with populations competitive basis. There is Groups Grants associations, or development exceeding 50,000 no matching requirement. co-op development centers that and their contiguous centers for technical serve socially- urbanized areas. assistance to disadvantaged small, socially- groups where disadvantaged a majority of groups in rural areas. the board of Note: This program directors or was formerly known governing board as the Small, Socially- is comprised of Disadvantaged individuals who Producer Grants are members Program. of socially- disadvantaged groups.

7 Rural Business and Cooperative Programs (Continued)

Program Objective Applicant Uses Population Loan/Grant Terms/Conditions Value-Added Help independent Independent Feasibility studies, All areas. Grant. Grants are awarded on a Producer Grants agricultural producers, farmer business plans; working competitive basis. Funds producers enter and rancher capital. may not be used to build into activities that cooperatives, facilities or purchase add value to their producer groups, equipment. Funds must be products. majority-controlled, matched on a dollar-for- producer-based dollar basis. business ventures.

Rural Energy for Provide assistance Rural small Energy efficiency Cities, towns, or Loan guarantee Grants of up to 25% of America Program for energy efficiency businesses improvements, unincorporated and/or grant. eligible project costs (REAP) Loan improvements and agricultural renewable energy areas with not to exceed $250,000 or to purchase producers. system installations. populations of for energy efficiency Guarantees and a renewable fewer than 50,000. projects and $500,000 for Grants energy system for (Population limits renewable energy. Loan operations. do not apply guarantees of up to 75% of to agricultural eligible project costs not to producers.) exceed $25 million. REAP Audit/ Grants for entities State, Tribal, or Up to $100,000 grant Businesses Grant. $100,000 to entities and Development to pass through to local government awarded to conduct receiving grant up to 75% of the cost of Grants small businesses institutions of energy audits and/ assistance must energy audit for renewable or agricultural higher education; or provide technical be located in energy development producers for 75% rural electric assistance to rural cities, towns, or assistance. of the cost of an cooperatives; small businesses and unincorporated energy audit or public power agricultural producers areas with renewable energy entities. for renewable energy populations of fewer development development assistance. than 50,000. assistance. There are no restrictions for agricultural producers. Biorefinery, To develop Individuals, Loan guarantees to No restrictions. Loan 80% (maximum) guarantee Renewable and construct Federally- develop and construct guarantee. on loans less than $150 Chemical, and commercial-scale recognized Indian commercial-scale million; 70% (maximum) biorefineries or Tribes, State or biorefineries or guarantee on loans of $150 Biobased Product retrofit facilities using local governments, retrofit facilities to use million but less than $200 Manufacturing eligible technology corporations, farm eligible technology million; 60% (maximum) Assistance for the development cooperatives, for the development guarantee on loans of $200 Program Loan of advanced associations of advanced biofuels, million up to $250 million. Guarantees biofuels, renewable of agricultural renewable chemicals, chemicals and/or producers, national and/or biobased biobased product laboratories, product manufacturing. manufacturing. higher learning institutions, rural electric co-ops, public power entities, and/or consortiums of any of the entities. Advanced Biofuel Payments to Eligible producers Payments to producers No restrictions. Payments. As funds are available. Payment Program producers to of advanced of advanced biofuels Complete applications support and biofuels. (non-commercial-based). submitted to National ensure expanding Office for review. Payments production of determined by National advanced biofuels. Office.

For direct loans and grants, apply to Rural Development. For loan guarantees, apply to participating intermediaries such as eligible banks, etc. For revolving funds (Intermediary Relending Program, Rural Economic Development Loans and Grants, Rural Microentrepreneur Assistance Program), intermediaries apply to Rural Development, others to the intermediaries.

8 9 Rural Utilities Programs Program Objective Applicant Uses Population Loan/Grant Terms/Conditions

Water and Waste Provide Public entities, Build, repair, and Rural areas and Direct loan and Repayment period is a Disposal Loans and infrastructure for Federally-recognized improve public towns with grant. maximum of 40 years. Grants rural areas. Indian Tribes, water systems and populations up Grant funds may be and nonprofit waste collection and to 10,000. available. corporations. treatment systems.

Water and Waste Provide Public entities, Build, repair, and Rural areas Loan guarantee. Eligible lenders obtain Disposal Loan infrastructure for Federally-recognized improve water supply and towns with up to a 90% guarantee Guarantees rural areas. Indian Tribes, and distribution populations up on loans they make and nonprofit systems and waste to 50,000. Funds and service. corporations. collection and are prioritized in treatment systems. favor of towns with populations of 10,000 or less for fiscal year 2020.

Solid Waste Technical Public bodies, Technical Rural areas and Grant. Application periods Management Grants assistance and private nonprofit assistance and towns with are announced in training to assist organizations, training to improve populations up the Federal Register. with management Federally-recognized landfill conditions to 10,000. Complete applications of water and Indian Tribes, and and protect against submitted to National wastewater systems. academic institutions. threats to nearby Office for review. water resources.

Technical Assistance/ Provide technical Public, private, Technical Rural areas and Grant. As funds are available. Training/Circuit Rider assistance and and nonprofit assistance and towns with Complete applications training. organizations. training to assist populations up submitted to National with management to 10,000. Office for review. of water and waste water projects.

ReConnect Program Expand broadband Nonprofits, for-profit Construct, Rural areas with Direct loans, Loan interest rate service to rural corporations, LLCs, improve, acquire populations up to grants, and 2%; loan/grant interest areas without co-ops, States, broadband and 20,000; urbanized loan/grant for loan portion is sufficient broadband territories, local terrestrial satellite areas with combinations. current Treasury access. governments, broadband facilities populations up rate at the time of Federally-recognized and equipment; to 50,000. fund disbursement. Indian Tribes. pre-application expenses.

Rural Broadband Deployment of Entities seeking to Funds to construct, Refer to the rule for Minimum and Refer to the rule Direct Loans and broadband service provide broadband improve, and specific definitions maximum loan for loan terms and Loan Guarantee to eligible rural services in rural acquire facilities and population limits. amounts published conditions. communities. areas. and equipment to annually in the Note: The 2014 provide broadband Federal Register. Farm Bill revised service in eligible program provisions. rural communities. An interim rule was published in Fiscal Year 2015.

10 Rural Utilities Programs (Continued) Program Objective Applicant Uses Population Loan/Grant Terms/Conditions

Electric and Help rural Nonprofit and Generation, Electric: areas Direct loan or loan Interest rates Telecommunications communities obtain cooperative transmission facilities served by an guarantee. established in Loans affordable, high- associations, public and distribution existing rural electric accordance with 7 quality electric and bodies, and other of electric power, borrower, or rural CFR 1714. Contact the telecommunications utilities. including alternative, areas other than Rural Utilities Service services. renewable, a city or town of at rd.usda.gov or conservation, and more than 20,000. 1 (800) 670-6553. energy efficiency Telecommunications: programs. Enhance areas with 911 emergency populations fewer services, digital than 5,000. switching equipment, and fiber optic cable, along with traditional main system telecommunications service.

Energy Efficiency Finances energy Existing electric loan Improve energy Rural areas Loans. Repayment period and Conservation efficiency and borrowers (utilities) efficiency for existing and towns with is 15 years unless Loan Program conservation serving rural areas. electric facilities; populations up to geothermal projects for attract new business 20,000. Eligible ground-loop source commercial, and create jobs; communities can investments or industrial, and reduce fossil fuel be combined into technology have a residential use; improve larger service areas. longer lifespan. consumers. energy efficiency measures for consumers; energy audits and more.

Rural Energy Helps rural Current and former Implement energy Contact RUS to Loans. Up to 20 years at Savings Program families and RUS borrowers or efficiency measures determine whether 0% interest; up to small businesses their subsidiaries, to decrease energy a project is in an 3% interest for achieve cost and entities that use or costs for rural eligible rural area. relending to qualified savings through meet retail electric families and small end-users/consumers loans to qualified service needs in business. for up to 10 years; consumers to rural areas. up to 4% of the loan implement durable, total may be used for cost-effective energy startup costs. efficiency measures.

Distance Learning Develop and Incorporated To provide end- Rural areas outside Grant. Awards range from and Telemedicine deploy advanced entities including user equipment incorporated or $50,000 to $500,000. telecommunication municipalities, for- and programming unincorporated A minimum of 15% services throughout profit, and nonprofit that delivers cities with in matching funds is rural America to corporations that distance learning populations up required. improve education operate rural and telemedicine to 20,000. and healthcare. schools, libraries, services to eligible healthcare areas. clinics, and other educational or healthcare facilities.

Community Provide public Public bodies, To build broadband A single Grant. Minimum: $50,000; Connect Grants access to Federally-recognized infrastructure community outside Maximum: $1 million. broadband in Tribes, cooperatives, and establish a incorporated or Amounts are published otherwise unserved nonprofits, limited community center unincorporated in Notices of Funding communities. dividend or mutual that offers free areas with Availability and may associations, public access populations fewer va r y. corporations, and to broadband for than 20,000 and other legally 2 years. without broadband organized entities. access.

Electric and Telecom programs: Contact the Rural Utilities Service Administrator; Water programs: Contact the Rural Development State Office. CFR refers to Code of Federal Regulations.

11 Rural Area Eligibility Criteria By law, the definition of “eligible rural area” is different for each USDA Rural Development program. The statutory rural area eligibility criteria for most programs are complex. Additionally, the statute also may include exceptions that provide consideration for specific communities based on regional circumstances. The table on the opposite page offers a general overview of the basic rural area requirements for our major programs.

• Use Our Eligibility Tool: Our online tool at https://eligibility.sc.egov.usda.gov can help customers determine if they are in an eligible rural area and are otherwise qualified to apply.

• Ask an Expert: Before starting any application for assistance, we encourage customers to contact USDA Rural Development—and speak to a specialist—to learn more about rural area requirements and other eligibility criteria for the program.

12 Rural Area Criteria For Up to For Up to For Up to For Up to For Up to Program No Rural For “Rural 5,000 10,000 20,000 35,000 50,000 Restrictions Areas” people People People People People Farm Labor Housing Loans/Grants t Value-Added Producer Grants t Rural Energy for America Program Loan Guarantees/Grants1 t Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program t Repowering Assistance Program t Advanced Biofuel Payment Program t Rural Energy Savings Program2 t Telecommunications Loans t Water and Waste Disposal Loans/Grants t Solid Waste Management Grants t Technical Assistance and Training/Circuit Rider Grants t Electric Loans t Rural Broadband Access Loans/Loan Guarantees t ReConnect Program t Energy Efficiency and Conservation Loan Program t Distance Learning and Telemedicine Grants t Community Connect Grants t Community Facilities Direct Loans/Grants t Single-Family Housing Direct Loans (including Self-Help Loans) t t Single-Family Housing Loan Guarantees3 t t Single-Family Housing Repair Loans/Grants3 t t Self-Help Housing Technical Assistance Grants3 t t Rural Rental Housing Direct Loans3 t t Rural Rental Housing Loan Guarantees3 t t Housing Preservation Grants3 t t Rural Community Development Initiative t Community Facilities Loan Guarantees t Business and Industry Loan Guarantees t Rural Business Development Grants t Intermediary Relending Program t Rural Microentrepreneur Assistance Program t Rural Economic Development Loans/Grants t Rural Cooperative Development Grants t Socially-Disadvantaged Groups Grants t Rural Energy for America Program Loan Guarantees/Grants4 t Water and Waste Disposal Guaranteed Loans t

Legend: 1 For agricultural producers. Housing/Community Facilities Programs 2 Contact RUS for specifics. 3 Primarily for populations up to 20,000; in special circumstances Business/Cooperative Programs communities up to 35,000 may be eligible. Utilities Programs 4 For rural small businesses and REAP Audit/Development Grants. 13 Rural Development Program Purposes

Technical Rural Housing and Land & Machinery & Working Infrastructure Assistance/ Community Facilities Programs Buildings Equipment Capital Training

Single Family Housing Direct Loans (including Self-Help Loans) t Single Family Housing Loan Guarantees t

Single Family Housing Repair Loans/Grants t

Self-Help Housing Technical Assistance Grants t

Rural Rental Housing Direct Loans t t

Rural Rental Housing Loan Guarantees t t

Housing Preservation Grants t t t t t

Farm Labor Housing Loans/Grants t t

Community Facilities Direct Loans, Loan Guarantees, Grants* t t t t

Rural Community Development Initiative t

Rural Business and Cooperative Programs

Business and Industry Loan Guarantees t t t t

Rural Business Development Grants t t t t t

Intermediary Relending Program Loans t t t

Rural Microentrepreneur Assistance Program t t t t t

Rural Economic Development Loans and Grants t t t t t

Rural Cooperative Development Grants t t

Socially-Disadvantaged Groups Grants t

Value-Added Producer Grant t t t

Rural Energy for America Program Loan Guarantees/Grants t t t t Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program Loan Guarantees Repowering Assistance Program

Advanced Biofuel Payment Program

Rural Utilities Programs

Water and Waste Disposal Direct Loans, Loan Guarantees, Grants t t t Solid Waste Management Grants t

Technical Assistance/Training/Circuit Rider t

ReConnect Program t t t t

Rural Broadband Direct Loans and Loan Guarantees t t Electric and Telecommunications Direct Loans/Loan Guarantees t t t Energy Efficiency and Conservation Loan Program t t t

Rural Energy Savings Program t t t

Distance Learning and Telemedicine Loans/Grants t t

Community Connect Grants t t t t

*Initial operating expenses are eligible in conjunction with the financing of an eligible community facility project. However, grant funds may not be used to fund initial operating expenses.

14 In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: [email protected].

USDA is an equal opportunity provider, employer, and lender.

Mention of a trade name or brand name does not constitute endorsement or recommendation by USDA over similar products not named.

RD-19005 Slightly Revised April 2020 Rural Development contacts and funding notices are at rd.usda.gov. The Contact Us menu tab has office addresses and phone numbers, or use our toll-free number at 1 (800) 670-6553 to be connected.