Rural Economic Development Loan and Grant

Agency Name: Rural Business-Cooperative Service

Description:

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 (RLFs). 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.

The Agency anticipates the following maximum amounts per award: Loans - $2,000,000; Grants - $300,000.