USDA Rural Development currently has $65 million in funding for low interest loans to be dispersed for community facility projects throughout Texas. Funding is authorized through the Department’s Community Facilities Direct and Guaranteed Loan Program.
USDA Rural Development Community Programs enhance the quality of life for rural Texans by providing funds to public bodies, community based non-profit corporations and federally-recognized tribes for essential community facilities and services. Funds may be used for a wide range of community projects. These include, but are not limited to, projects such as those which will enlarge, improve or construct schools, libraries, farmers markets, medical clinics, assisted living centers, public buildings, and community centers. Funding can also be used to purchase public safety equipment such as ambulances, firefighting equipment, and other emergency required implements.
Community Programs can make and guarantee loans to develop essential community facilities in rural areas and towns of up to 20,000 in population. Guaranteed loans are made and serviced by lenders such as banks, savings and loans, mortgage companies which are part of bank holding companies, banks of the Farm Credit System, or insurance companies regulated by the National Association of Insurance Commissioners. Community Programs may guarantee up to 90% of any loss of interest or principal on the loan. Community Programs can also make direct loans to applicants who are unable to obtain commercial credit.
Applications are now being accepted to fund projects meeting the criteria for community facility loan programs, as outlined on http://www.rd.usda.gov/programs-services/community-facilities-direct-loan-grant-program/tx.
For further information regarding this program, contact your nearest Rural Development office, as listed on our website at http://rd.usda.gov/tx.