- 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.
- This program is 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.
You may also access the Code of Federal Regulations, 7 CFR, Part 4280.
There are no additional requirements.
Amy Sorensen, Business & Cooperative Programs Director (435) 557-5117
Barry Christensen, Loan Specialist (435) 283-8004 ext. 107
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