Applications for this program are originated in the field office serving your county. Select the Contacts tab above for the NC field office list.
Direct Loan Applicant Guidance Book: PDF
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:
- Public bodies
- Community-based non-profit corporations
- Federally-recognized Tribes
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
What kinds of funding are available?
- Low interest direct loans
- 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.
- 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
- 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.
- 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.
- 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.
- 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.
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:
Current interest rates for the 1st Quarter of Fiscal Year 2020, effective October 1, 2019 – December 31, 2019:
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
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.
There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.
There are currently no events scheduled.
ASHEVILLE AREA OFFICE
Pam Hysong, Area Director
160 Zillicoa Street, Suite #2
Asheville, NC 28801
Counties Served: Buncombe, Henderson, Transylvania
JEFFERSON SUB AREA OFFICE
134 Government Circle
Jefferson, NC 28640
Counties Served: Ashe, Watauga, Alleghany, Wilkes, Caldwell
FRANKLIN LOCAL OFFICE
195 Thomas Heights Rod
Franklin, NC 28734
Counties Served: Macon, Haywood, Jackson, Cherokee, Clay, Graham, Swain
MURPHY LOCAL OFFICE
225 Valley River Avenue, Suite J
Murphy, NC 28906
SPRUCE PINE LOCAL OFFICE
11943 S. 226 Hwy Suite D
Spruce Pine, NC 28777
Counties Served: Mitchell, Yancey, Madison, Avery
SHELBY AREA OFFICE
Warren C. Smith, Area Director
844 Wallace Grove Road
Shelby, NC 28150
Counties Served: Cleveland, Gaston, McDowell, Polk, Rutherford, Mecklenburg
WINSTON SALEM SUB AREA OFFICE
Forsyth County Agriculture Building
1450 Fairchild Drive
Winston Salem, NC 27105
Counties Served: Forsyth, Alexander, Burke, Davie
STATESVILLE LOCAL OFFICE
444 Bristol Drive
Statesville, NC 28677
Counties Served: Iredell, Catawba, Lincoln
DOBSON LOCAL OFFICE
220 Cooper Street
PO Box 66
Dobson, NC 27017
Counties Served: Surry, Yadkin, Stokes
LUMBERTON AREA OFFICE
Rossie Bullock, Area Director
PO Box 7426
440-C Caton Road
Lumberton, NC 28360
Counties Served: Robeson, Bladen, Cumberland, Scotland, Hoke, Columbus
SMITHFIELD SUB AREA OFFICE
Johnston County Agric Service Bldg
2736 Hwy 210
Smithfield, NC 27577
Counties Served: Johnston, Harnett, Sampson, Wake, Wilson
BOLIVIA LOCAL OFFICE
10 Referendum Drive
PO Box 108
Bolivia, NC 28422
Counties Served: Brunswick, New Hanover, Pender
ASHEBORO AREA OFFICE
847 Curry Drive, Suite 104
Asheboro, NC 27205
Counties Served: Guilford, Randolph, Davidson, Rowan, Stanly, Cabarrus, Rockingham, Caswell, Alamance
SANFORD LOCAL AREA OFFICE
2416 Tramway Road
Ernest & Ruby McSwain Extension Educ & Ag Center
Sanford, NC 27332
Counties Served: Lee, Chatham, Moore
ROCKINGHAM LOCAL OFFICE
123 Caroline Street
Rockingham, NC 28379
Counties Served: Richmond, Montgomery, Anson, Union
HENDERSON AREA OFFICE
853 S. Beckford Drive, Suite A
Henderson, NC 27536
Counties Served: Vance, Granville, Franklin, Warren, Orange, Durham, Person, Nash, Northampton
WINTON SUB AREA OFFICE
County Office Building
305 W. Tryon Street
PO Box 8
Winton, NC 27986
Counties Served: Hertford, Gates, Chowan, Pasquotank, Perquimans, Camden, Currituck, Bertie
HALIFAX LOCAL OFFICE
Halifax County Agriculture Complex
359 Ferrell Lane
Halifax, NC 27839
Counties Served: Halifax
KINSTON AREA OFFICE
2044-C Hwy 11/55 South
PO Box 6189
Kinston, NC 28501-0189
Counties Served: Lenoir, Jones, Craven, Pamlico, Onslow, Carteret, Wayne, Greene, Duplin
GREENVILLE SUB AREA OFFICE
Pitt County Office Complex
403 Government Circle, Suite 3
Greenville, NC 27834
Counties Served: Pitt, Martin, Washington, Tyrrell, Dare, Beaufort, Hyde, Edgecombe