Amended Notice of Solicitation of Applications for the Rural Economic Development Loan and Grant Programs for Fiscal Year 2025 : On Nov 21, 2024 an Amendment was issued to Notice of Solicitation of Applications for the Rural Economic Development Loan and Grant Programs for Fiscal Year 2025. Link to Amended NOSA.
- Notice: This program is only open to current or former Rural Utilities Service Electric or Telecommunication borrowers and not-for-profit utilities eligible under the Rural Electrification Act.
What do these programs do?
- Current Rural Utilities Service (RUS), electric or telecommunication borrower,
- Any former RUS borrower that has repaid or prepaid an insured, direct or guaranteed loan under the Rural Electrification Act,
- Or any not-for-profit utility that is eligible to receive an insured or direct loan under such Act.
- Maximum Grant Amount: $300,000 to establish the Revolving Loan Fund.
- Up to 10 percent of grant funds may be applied toward operating expenses over the life of the Revolving Loan Fund.
- Maximum Loan Amount: $1 million.
- 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 help 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.
• 10 years at zero 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.
- The interest rate is zero percent.
- Up to 80 percent of project costs; 20 percent must be provided by the ultimate recipient or the local utility.
- The local utility may incorporate interest rates or administrative loan fees after the funds have been loaned out and revolved once. First-time loans are at zero percent interest.
- Repayment may be deferred up to two years for projects including a start-up venture or Community Facilities project.
- Basic Program – Code of Federal Regulations, 7 CFR, Part 4280.
- Loan/Grant Servicing – Code of Federal Regulations, 7 CFR, Part 4280 and 2 CFR Part 200.
- These programs are authorized by the Rural Electrification Act of 1936.
NOTE: If state specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Business Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in your application.
RBCS How-To Apply Video Series for Applicants
You may also access the Code of Federal Regulations, 7 CFR, Part 4280.
There are no additional requirements.
Please select your state in the dropdown menu above to find your local contact for these programs.
Persons with disabilities that require alternative means for communication should contact the U.S. Department of Agriculture (USDA) Target Center at (202)720–2600 (voice).