U.S. Department of Agriculture-Rural Development (USDA-RD) Alaska State Director Jim Nordlund, today announced USDA-RD is making funds available to community development organizations (CDOs) that qualify as eligible lending institutions through a new program called the Community Facilities Relending Program (CFRP).
"The USDA-RD Alaska State Office is excited about this new opportunity to leverage the capacities of our CDFI partners in assisting USDA RD in deploying the capital of the Community Facilities Direct Loan Program," said Greg Stuckey, USDA-RD Alaska’s Community Programs Director.
Stuckey added, "By allowing relending through the Community Facilities Direct Loan Program, USDA-RD is greatly enhancing our ability to target those areas of the State of Alaska that are impacted by persistent poverty. I am very excited to help promote this new use of the program funds and I look forward to working with those interested entities to become “re-lenders."
This program allows USDA-RD to make direct loans to CDOs, (referred to as “re-lenders”), who then re-loan the funds to eligible applicants to acquire, maintain, build, or renovate essential community facilities. The CFRP targets CDOs working in high poverty and persistent poverty areas.
This change to the Community Facilities (CF) rule will increase USDA-RD’s impact in high-need areas and empower experienced community-based organizations. CDOs – distinct from banks, investment funds, and other economic development organizations – have a demonstrated track record of implementing the kinds of creative and time-intensive activities that are necessary to build essential community facilities.
The community lenders that receive CF funds through this relending program will have to hold their borrowers to the same rules and regulations as a borrower of the current Community Facilities Direct Loan program.
The application deadline is August 8, 2016. For details of this Notice of Solicitation of Applications, see the June 6, 2016 Federal Register.
For more information, contact Greg Stuckey at: (907) 761-7778, or greg.stuckey@ak.usda.gov.