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Community Facilities Guaranteed Loan Program in Iowa

Open year round.

One RD Guarantee

Beginning Oct. 1, 2020, this program will be streamlined under the OneRD Guarantee Loan Initiative. For more information, visit www.rd.usda.gov/onerdguarantee

What does this program do?

This program provides loan guarantees to eligible lenders to develop essential community facilities in rural areas. An essential community facility is defined as a public improvement, operated on a non-profit basis, needed for the orderly development of a rural community where the rural community is a city or town, or its equivalent county or multi-county area.  The term “facility” refers to both the physical structure financed, and the resulting service provided to rural residents or rural businesses.

Who may apply for this program? 

Lenders who have the legal authority, financial strength and sufficient experience to operate a successful lending program. This includes lenders that are subject to supervision and credit examination by the applicable agency of the United States or a State, including:

  • Federal and State chartered banks
  • Farm Credit Banks with direct lending authority
  • Bank for Cooperatives
  • Savings and Loan Associations
  • Savings banks
  • Mortgage companies that are part of a bank-holding company
  • The National Rural Utilities Cooperative Finance Corporation
  • Credit unions
  • State Bond Banks or State Bond Pools

Other non-regulated lending institutions may also be approved by the Agency under the criteria of the OneRD regulation.

Who may qualify for these loan guarantees?

Eligible borrowers are:

  • Public bodies
  • Indian tribes on Federal and State reservations
  • Federally-recognized Tribes
  • Non-profit organizations

Additional entities may be eligible for other types of loan guarantees under the OneRD Guarantee Loan Initiative.

What is an eligible area?

  • Rural areas with populations of 50,000 residents or less, which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H)*,  based on the latest decennial census of the United States and not in the urbanized area contiguous and adjacent to that city or town.   
  • The lender may be located anywhere in the United States.
  • Check an eligible rural area. 

* Exclusion of incarcerated populations. Populations of individuals incarcerated on a long-term or regional basis shall not be included in determining whether an area is "rural" or a "rural area".

How may funds be used?

Each year the Agency will reserve funds for projects located in rural areas with a population of not more than 20,000 inhabitants based on the following reservation of funds schedule:

  1. 100% of the first $200,000,000 made available
  2. 50% of the next $200,000,000 made available
  3. 25% of all amounts exceeding $400,000,000 made available

Funds can be used to construct, enlarge, extend or otherwise improve essential community facilities.  Guarantee funds can also be used for refinancing the debt of an essential community facility.

Examples of essential community facilities include:

  • Health care facilities and services, including but not limited to hospitals
  • Fire, rescue, and public safety facilities and services
  • Community, public, social, educational, or cultural facilities or services
  • Transportation facilities such as streets, bridges, roads, ports, and airports
  • Certain utility projects when not eligible for Rural Utilities Service financing, gas distribution systems, recycling and transfer centers or stations
  • Telecommunications end-user equipment when related to public safety, medical, or educational telecommunication links when not eligible for Rural Utilities Service financing
  • Water infrastructure facilities such as levees, dams, reservoirs, inland waterways, canals, and irrigation systems
  • Purchase and installation of renewable energy systems for use by an essential community facility (conditions apply)
  • Land acquisition and necessary site preparation including access ways and utility extensions to and throughout an industrial park site
  • Community parks, community activity centers, and similar types of facilities 

For a complete list see Code of Federal Regulations 7 CFR 5001.103(a) and 5001.121(a).

What may loan guarantee funds NOT be used for? 

  • Lines of credit
  • Owner-occupied and rental housing
  • Golf courses or golf course infrastructure
  • Racetracks or gambling facilities
  • Facilities used for inherently religious activities
  • Projects that create, directly or indirectly a conflict of interest 
  • Inherently commercial enterprises

For a complete list see Code of Federal Regulations 7 CFR 5001.115, 5001.116, and 5001.122.

What Collateral Is Required?

The lender is responsible for obtaining and maintaining proper and adequate collateral for the guaranteed loan.  All collateral must secure the guaranteed loan.  The lender should discount collateral consistent with sound loan-to-discounted value practices which must be adequate to secure the guaranteed loan.  The lender will determine the market value of the collateral with an appraisal. 

What is the maximum amount of a loan guarantee?

The loan guarantee percentage is published annually in a Federal Register notice. CF loan guarantees approved in Fiscal Year 2024 will receive an 80 percent guarantee.

What is the maximum loan amount?

The maximum amount of a guaranteed loan is $100 million. The loan amount includes the guaranteed and unguaranteed portion. It also includes the balance of any existing CF guaranteed loans and the new CF guaranteed loan request. 

What are the loan terms?

The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower’s repayment ability. The loan term will not exceed 40 years.

What are the interest rates?

  • Interest rates are negotiated between the lender and borrower.
  • Rates may be fixed or variable.
  • Variable interest rates may not be adjusted more often than quarterly.

What are the applicable fees?

  • There is an initial guarantee fee, currently 1.25 percent of the guaranteed amount.
  • There is a guarantee retention fee, currently 0.5 percent of the outstanding principal balance, paid annually 
  • There is a fee for the Issuance of Loan Note Guarantee Prior to Construction of 0.5 percent.
  • Reasonable and customary fees for loan origination are negotiated between the borrower and lender.
What are the underwriting requirements?
  • The lender will conduct a credit evaluation using credit documentation procedures and underwriting processes that are consistent with generally accepted prudent lending practices and also consistent with the lender’s own policies, procedures and lending practices.
  • The lender’s evaluation must address any financial or other credit weaknesses of the borrower and project and discuss risk mitigation requirements.
  • The lender must analyze all credit factors to determine that the credit factors and guaranteed loan terms and conditions ensure guaranteed loan repayment.
  • Credit factors to be analyzed include but are not limited to character, capacity, capital, collateral, and conditions. 

Are there additional requirements?

  • Applicants must have legal authority to construct, operate, and maintain the proposed facilities and services and to obtain, give security for, and repay the proposed loan 
  • Applicants must be unable to finance the project from their own resources or through commercial credit at reasonable rates and terms
  • Applicants must provide evidence of significant community support
  • Non-profit organizations must have significant ties to the project service area
  • Tax exempt financing cannot be guaranteed by this program
  • Facilities must be for public use and serve the rural area where they are /will be located
  • Lender is responsible for becoming familiar and ensuring compliance with Federal Environmental requirements

Who will service the loan?

The lender is responsible for servicing the entire loan and taking all servicing actions that a reasonably prudent lender would perform in servicing its own portfolio of loans that are not guaranteed.

How do we get started?

Who can answer questions?

Contact the local Rural Development office that serves your area.

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.

Application Documents:

  • RD 5001-1, Application for Loan and Guarantee

  • Applicant’s Organizational Documents (Nonprofit Organizations Only)

  • Lender’s disclosure of conflicts of interest, if applicable

  • Environmental Assessment - Please contact your local area office to determine the level of environmental assessment required.  Early submittal recommended. Funding cannot be determined until environmental review is complete.

  • Applicant’s current and previous year’s financial and income statements (RD 442-2 and RD 442-3 or similar format may be used)

  • Preliminary Architectural/Engineering Report – in a format required by the lender

  • Lender’s credit evaluation 

  • Applicant’s most recent financial statements or audit (not more than 12 months old) Forms RD 442-2 and RD 442-3 or similar format may be used

  • Proposed loan agreement

  • Appraisal (if required by lender)

  • Credit Report (if required by lender)


NOTE: Please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Community Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in your application.

Interest Rates

Interest rates are negotiated between the lender and the borrower, subject to USDA approval.

National Architect Requirements:

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.

State Environmental Requirements:

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: air quality

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. http://www.fws.gov/cbra/Maps/index.html#LocatorMaps.

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 www.epa.gov/safewater/sourcewater/pubs/qrg_ssamap_reg7.pdf

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

National Environmental Requirements:

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.

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

Kim Ledger
Community Programs Director in Iowa
phone: 515-284-4669

Area Office Contacts
Area 1 - Iowa Falls Area Office
 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
 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
 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
 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
 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
 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
 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
 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
 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
 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