RFP Summary provided by the agency
The Rural Economic Development Loan and Grant program provides 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 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.
What is the mission and focus of the program: research, social, economic or others?
- Economic, Social, 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
How do you submit to this opportunity?
Applications for this program are accepted through your local office year round.
Who are the target applicants: cities, universities, companies, small business, nonprofits, or others?
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.
- Intermediaries may use funds to lend for projects in rural areas or towns with a population of 50,000 or less.
Example project(s) summaries from past RFPs:
Loogootee Public Library award of $1,134,800. This Rural Development investment will be used to construct a new public library for the townships of Rutherford and Perry in the City of Loogootee. The library is working with Work One to have an office provided to assist residents looking for work opportunities through the State’s outreach center. The Library has the potential to bring on additional employees if circulation continues to increase. Having a better designed library, as well as having the WorkOne center, will improve the lives of the residents of Rutherford and Perry Townships by having access to cultural, educational, and economic development resources. The schools in the area will have another resource to utilize with their students. The population of this rural area is 5,853 residents.