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: $2 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.
Grant Konechne, Rural Business and Cooperative Programs Director
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD 57350
Phone: (605) 352-1108
Fax: (855) 262-1940
Wyatt Stevens, Specialist
200 4th St SW Federal Building, Rm. 210
Huron, SD 57350
Serving: Beadle, Brookings, Brown, Clark, Codington,
Day, Deuel, Edmunds, Grant, Hamlin, Hand, Hyde, Kingsbury,
Marshall, McPherson, Roberts, and Spink Counties.
Phone: (605) 352-1111
Facsimile: 855-262-1940
Lance Lockwood, Specialist
414 East Stumer Road, Suite 200
Rapid City, SD 57701
Serving: Bennett, Butte, Custer, Fall River, Harding,
Jackson, Lawrence, Meade, Oglala Lakota, Perkins,
and Pennington Counties.
Phone: (605) 858-6681
Fax: (855) 262-1943
Clark Guthmiller, Specialist
1717 N. Lincoln Avenue, Suite 102
Pierre, SD 57501
Serving: Campbell, Corson, Dewey, Haakon, Hughes,
Jones, Lyman, Mellette, Potter, Stanley, Sully, Todd,
Tripp, Walworth and Ziebach Counties.
Phone: (605) 301-3409
Fax: (855) 262-1942
Carolyn Bloodgood, Technician
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD 57350
Phone: (605) 352-1144
Fax: (855) 262-1940