Program 101

Please click on the Forms and Resources tab for application information.

Abbreviated Fact Sheet

Program Status: Open

What does this program do?
This program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.

Who may apply for this program?
Eligible borrowers include:

What is an eligible area?
Rural areas including cities, villages, townships and towns including Federally Recognized Tribal Lands with no more than 20,000 residents according to the latest U.S. Census Data are eligible for this program.

How may funds be used?
Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses.

Examples of essential community facilities include:

  • Health care facilities such as hospitals, medical clinics, dental clinics, nursing homes or assisted living facilities
  • Public facilities such as town halls, courthouses, airport hangars or street improvements
  • Community support services such as child care centers, community centers, fairgrounds or transitional housing
  • Public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles or equipment
  • Educational services such as museums, libraries or private schools
  • Utility services such as telemedicine or distance learning equipment
  • Local food systems such as community gardens, food pantries, community kitchens, food banks, food hubs or greenhouses

For a complete list see Code of Federal Regulations 7 CFR, Part 1942.17(d) for loans; 7 CFR, Part 3570.62 for grants.

What kinds of funding are available?

  • Low interest direct loans
  • Grants
  • A combination of the two above, as well as our loan guarantee program. These may be combined with commercial financing to finance one project if all eligibility and feasibility requirements are met.

What are the funding priorities?

  • Priority point system based on population, median household income
    • Small communities with a population of 5,500 or less
    • Low-income communities having a median household income below 80% of the state nonmetropolitan median household income.

What are the terms?

Funding is provided through a competitive process.

Direct Loan:

  • Loan repayment terms may not be longer than the useful life of the facility, state statutes, the applicants authority, or a maximum of 40 years, whichever is less
  • Interest rates are set by Rural Development, contact us for details and current rates
  • Once the loan is approved, the interest rate is fixed for the entire term of the loan, and is determined by the median household income of the service area and population of the community
  • There are no pre-payment penalties
  • Contact us for details and current interest rates applicable for your project

Grant Approval:

  1. Applicant must be eligible for grant assistance, which is provided on a graduated scale with smaller communities with the lowest median household income being eligible for projects with a higher proportion of grant funds.  Grant assistance is limited to the following percentages of eligible project costs:Maximum of 75 percent when the proposed project is:
  • Located in a rural community having a population of 5,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 60 percent of the State nonmetropolitan median household income.
  1. Maximum of 55 percent when the proposed project is:
  • Located in a rural community having a population of 12,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 70 percent of the State nonmetropolitan median household income.
  1. Maximum of 35 percent when the proposed project is:
  • Located in a rural community having a population of 20,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 80 percent of the State nonmetropolitan median household income.
  1. Maximum of 15 percent when the proposed project is:
  • Located in a rural community having a population of 20,000 or fewer; and
  • The median household income of the proposed service area is below the higher of the poverty line or 90 percent of the State nonmetropolitan median household income. The proposed project must meet both percentage criteria. Grants are further limited.
  • Grant funds must be available

Are there additional requirements?

  • Applicants must have legal authority to borrow money, obtain security, repay loans, construct, operate, and maintain the proposed facilities
  • Applicants must be unable to finance the project from their own resources and/or through commercial credit at reasonable rates and terms
  • Facilities must serve rural area where they are/will be located
  • Project must demonstrate substantial community support
  • Environmental review must be completed/acceptable

How do we get started?

  • Contact your local office to discuss your specific project
  • Applications for this program are accepted year round
  • Program resources are available online (includes forms needed, guidance, certifications)
  • Request a Data Universal Number System (DUNS) number if your organization doesn’t already have one. It should not take more than a few business days to get your number.
  • Register your organization with the System for Award Management (SAM) if you aren’t already registered. The registration is free, but you need to complete several steps.

Who can answer questions?
Contact your local RD office.

What governs this program?

NOTE: Because citations and other information may be subject to change please always consult the program Instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

Forms & Resources

Community Facilities Direct Loan and Grant Program

To begin the process of applying for a Community Facilities loan or grant, complete and submit the following documents to your Local Rural Development Office.

Pre-Application Documents

 

  • Nonprofit Only - Representation Regarding Felony Conviction or Tax Delinquent Status for Corporate Applicants (Form AD-3030)
     

Upon receipt of a complete pre-application package, your local Rural Development Office will determine applicant and project eligibility, the level of environmental information needed, and if any additional financial information is needed. You will be notified of the agency's decision within 45 days and given further instructions on needed documents.
 

Please be advised that you are required to hold a public meeting prior to loan or grant approval. Instructions for meeting the public information requirements are found below.
 

All Projects funded must follow federal free and open competition guidelines.  This involves following Rural Development and state bidding requirements.  Your local Rural Development Office will help you determine the specific procurement needs of your project.
 

At a minimum, you will also need to provide the following documents to complete an application:

 

  • Application for Federal Assistance, SF 424
     
  • Assurances (non-construction) SF 424B or Assurances (construction) SF 424D
  • Resolution of Governing Board Authorizing Application IA Sample A-1 (November 2015)
  • Published Notice of Public Meeting/Minutes of Meeting IA Sample A-2 (November 2015)

 


Other Documents that May be Needed

NOTE: If state specific forms are not shown above, please refer to the application materials listed below to start the process of applying. Please ensure that your state is selected in the dropdown menu above to find the State Office contact information for this program and speak to a Community Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in the process.

Application Checklist for use with this program:

RD Form 1942-40, Checklist - Public Body  (pdf) or

RD Form 1942-39, Checklist - Other Than Public Bodies (pdf)

Engineering

Individual states may have particular requirements based on state and local regulations. Please select your state in the dropdown menu above to find your local contact for this program.

Environmental

Rural Development environmental requirements can be found here: RD 1970 Environmental Policies and Procedures. Benefits of the 1970 environmental regulations are described here: 7 CFR 1970 Benefits.

Environmental Assessments

Air Quality

Project emissions, including those created by potential secondary beneficiaries, shall be examined for conformance to the Clean Air Act and the Environmental Protection Agency's National Primary and Secondary Ambient Air Quality Standards.
Iowa has two "non-attainment" areas. The following link from EPA lists all the nonattainment areas: http://www.epa.gov/airquality/greenbook/

For questions contact Air Quality Helpline with Iowa DNR: (877) AIR-IOWA (247-4692).
If the proposal will emit large quantities of air pollutants, contact your Rural Development loan specialist and provide the information from Iowa DNR's Air Quality Section. Specialists will review the information to ascertain the level of environmental review required.

To determine emissions from other facilities in the project area check the EPA website at www.epa.gov/echo/, then:

1. Click on "Air data", in the Facility Characteristics check the "other minor" box.


2. In the Geographic Location boxes click on region 7, State IOWA, and fill in county name, and search. Print out page for file.

Air permits can be viewed at: http://www.iowadnr.gov/air/prof/const/const.html

Approved Coastal Zone Management Area
Iowa does not have any coastal zone management areas. http://coast.noaa.gov/czm/mystate/

Coastal Barrier included in Coastal Barrier Resources System Natural Landmark
Iowa does not have any coastal barrier areas. https://coast.noaa.gov/czm/mystate/.


Natural Landmark
The National Park Service web site can be found at: www.nps.gov. Under “Find a Park,” click on Iowa to locate national monuments, national historic sites, and historic trails.

Place printout from the website in the file.


Prime Forest Lands
There are no national prime forest lands in Iowa. http://www.fs.fed.us/maps/forest-maps.shtml

For State Forests: Check the DNR website at http://www.iowadnr.gov/Destinations/StateForests.aspx.

Place a printout from the website in the file.

Prime Rangeland
Iowa does not have any prime range land areas. http://www.fs.fed.us/maps/forest-maps.shtml.


Sole Source Aquifer Recharge Area
Iowa does not have any designated sole source aquifers as referenced at the EPA website http://www.epa.gov/ground-water-and-drinking-water


Wild or Scenic Rivers
Iowa does not have any Wild and Scenic River as defined under the Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271) as referenced at the National Park Service website www.rivers.gov.

The State of Iowa and the Nationwide Rivers Inventory have designated several areas as protected waterways. View the list at http://www.nps.gov/ncrc/programs/rtca/nri/states/ia.html.

 

Wilderness (designated or proposed under the Wilderness Act)

Iowa has no national wilderness areas.

You may access information national wilderness areas and related state areas at the following sites:

WILDERNESS AREA: www.wilderness.net

The Forest Service, Bureau of Land Management, Fish & Wildlife Service, and National Park Service are charged with stewardship of Wilderness Area lands while providing for appropriate human use and enjoyment. To find out more about these special places, see the site above, which is jointly managed by the University of Montana and the four federal agencies that manage wilderness areas. This is an interactive site where you may type in an address to determine if there is a wilderness area within the area of a proposed project.

• In the left column select “Maps, Data and Images” / select Maps / Under “Online Maps” in the first paragraph, select “GIS Maps” / top header of the website, Choose one of two options for your search.
• Zoom by Typing or Select a Wilderness.
• Find a Place / City / Road.
• Select “Go” which takes you to the area of interest – Along the bottom of the page is the color codes for “Wilderness Managed By ……………”
• Gear symbol in the top right hand corner allows you to save and / or print the map as a source document for the environmental report.

STATE WILDLIFE MANAGEMENT AREA: http://www.iowadnr.com/wildlife/wmamaps/index.html
• Click on the appropriate county on the left-hand side of the screen.

STATE PRESERVE: http://www.iowadnr.gov/Destinations/StatePreserves.aspx


STATE PARK OR RECREATION AREA: http://www.iowadnr.gov/Destinations/StateParksRecAreas.aspx

Architect

Rural Development (RD) Programs, such as Community Facilities (CF) and Multi-Family Housing (MFH), involve the construction of new buildings or renovation of existing facilities. The development of these facilities involves the need  for architectural services for the preparation of plans, specifications, public bidding, contracting, construction, and construction monitoring.

Applicants, at the earliest possible time, should provide a Preliminary Architectural Feasibility Report, including the Cost Estimate, for the review by the RD Area Loan Specialist and RD State Architect. These two documents are needed to determine the project's feasibility.  RD's State Architect will evaluate and provide architectural/construction guidance to the Applicants and their Architects, for RD financed architectural projects, in the following areas:
               
                   Initial site visit & evaluation of the proposed project
                   Preliminary Architectural Feasibilty Report                    
                   Agency concurrence of Owner/Architect Agreements
                   Agency acceptance of Plans & Specifications
                   Agency concurrence of Construction Contract documents
                   Construction & construction monitoring

Community Facilities Architect Information
 

Construction Management Guidelines

Short Form Contract Documents

Public Body Contracts

Nonprofit Contracts

AIA - Contract Document Attachments

All RD documents listed below combined into one document

  • Advertisement for Bids - (Non-profit) - IA Sample D-1 (7-2015)
     
  • Competitive Negotiation Selection Form - (Non-profit) - IA Sample D-3 (8-2015)
     
  • Statement of Substantial Completion - IA Guide E-2 (8-2015)

Interest Rates

Current interest rates for the 1st Quarter of Fiscal Year 2019, effective October 1, 2018  - December 31, 2018:

Poverty: 4.500%*
Intermediate: 4.125%*
Market: 3.875%

For this quarter, all loans will be given at the lower market rate.

Contacts

Kate Sand

Community Programs Director in Iowa

ph: 515-284-4459

Kate.Sand@ia.usda.gov

Area Office Contacts

Area 1 - Iowa Falls Area Office
Randy Campbell, Area Director
840 Brooks Road
Iowa Falls, IA 50126
Phone: 641-648-5181 Ext. 4 Fax: 866-255-6573

Counties Served: Butler, Cerro Gordo, Floyd, Franklin, Grundy, Hardin, Marshall, Mitchell, Tama and Worth

Area 2 - Waverly Area Office
Randy Campbell, Area Director
1510 3rd Street, SW
Waverly, IA 50677
Phone: 319-352-1715 Ext. 4 Fax: 866-255-6573

Counties Served: Allamakee, Black Hawk, Bremer, Buchanan, Chickasaw, Clayton, Delaware, Fayette, Howard and Winneshiek

Area 3 - Tipton Area Office
Michelle Moore, Area Director
127 West South Street
Tipton, IA 52772
Phone: 563-886-6006 Ext. 4 Fax: 866-255-6573

Counties Served: Benton, Cedar, Clinton, Dubuque, Iowa, Jackson, Johnson, Jones, Linn and Scott

Area 4 - Mt. Pleasant Area Office
Michelle Moore, Area Director
709 S. Iris Street, Suite 103
Mount Pleasant, IA 52641
Phone: 319-986-5800 Ext. 4 Fax: 855-251-2237

Counties Served: Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Muscatine, Van Buren and Washington

Area 5 - Albia Area Office
Michelle Moore, Area Director
1709 South "B" Street
Albia, IA 52531
Phone: 641-932-3031 Ext. 4 Fax: 855-251-2237

Counties Served: Appanoose, Davis, Jasper, Lucas, Mahaska, Marion, Monroe, Poweshiek, Wapello and Wayne

Area 6 - Indianola Area Office
Randy Campbell, Area Director
909 East 2nd Avenue, Suite C
Indianola, IA 50125
Phone: 515-961-5365 Ext. 4 Fax: 855-251-2238

Counties Served: Adair, Clarke, Dallas, Decatur, Guthrie, Madison, Polk, Ringgold, Union and Warren

Area 7 - Atlantic Area Office
Randy Campbell, Area Director
511 West 7th Street
Atlantic, IA 50022
Phone: 712-243-2107 Ext. 4 Fax: 855-251-2238

Counties Served: Adams, Audubon, Cass, Fremont, Harrison, Mills, Montgomery, Page, Pottawattamie, Shelby and Taylor

Area 8 - Le Mars Area Office
Randy Hildreth, Area Director
1100 12th Street SW, Suite C
Le Mars, IA 51031
Phone: 712-546-5149 Ext. 4 Fax: 855-251-2245

Counties Served: Cherokee, Crawford, Ida, Lyon, Monona, O'Brien, Osceola, Plymouth, Sioux and Woodbury

Area 9 - Storm Lake Area Office
Randy Hildreth, Area Director
1619 North Lake Avenue
Storm Lake, IA 50588
Phone: 712-732-1851 Ext. 4 Fax: 855-251-2245

Counties Served: Buena Vista, Calhoun, Carroll, Clay, Dickinson, Emmet, Greene, Palo Alto, Pocahontas and Sac

Area 10 - Humboldt Area Office
Randy Hildreth, Area Director
1301 6th Avenue North, Suite 1
Humboldt, IA 50548
Phone: 515-332-4411 Ext. 4 Fax: 855-251-2245

Counties Served: Boone, Hamilton, Hancock, Humboldt, Kossuth, Story, Webster, Winnebago and Wright