1. Community Facilities Program

2. What Is An Essential Community Facility?
Provides an essential service to the local community – the service must be a function customarily provided by a local unit of government.
Must be a public improvement needed for the orderly development of a rural community.
All facilities must be for public use and be located in an eligible rural area.

3. An Eligible Facility Must Be:
A function customarily provided by a local unit of government
Operated on a non-profit basis
Able to demonstrate significant support (N/A for Public Bodies)

4. Eligible Rural Areas
Cities, towns, and census designated places (CDPs) with populations of 20,000 or less according to the latest decennial census of the United States.
There is no limitation placed on population in unincorporated rural areas, with the exception of CDP’s.

5. Eligible Applicants PUBLIC BODIES Such as: municipality county
district
authority, or,
other political subdivision of a state

6. Eligible Applicants NON-PROFIT ORGANIZATIONS
An organization operated on a not-for-profit basis, such as an association, cooperative, or private corporation.
Need to provide organizational documents to demonstrate nonprofit status.

7. Nonprofit Corporations
Must have significant ties to local community
To ensure that a facility under private control will carry out a public purpose
Facility will continue to primarily serve rural areas
Elected officials support the project

8. How Can Funds Be Used? Eligible Loan Purposes
Purchase real estate/buildings
Construction, expansion, or renovations, to essential community facilities
Purchase vehicles and major equipment

9. How Can Funds Be Used? Eligible Loan Purposes
Purchase an existing facility to improve or to prevent a loss of service;
Construct buildings, roads, bridges, day care facilities, hospitals, medical clinics, public safety facilities, city halls, court houses, etc.
Finance anything essential for orderly community development except recreational facilities

10. Loan Terms
Up to 40 years dependent upon the useful life of the security and repayment ability.
Principal can be deferred for up to 3 years to allow facility to become operational.

11. Interest Rates (as of October 1, 2017)
Present rates (subject to change quarterly):
Market % (above $49,785)
Intermediate % ($39,828 - $49,785)
Poverty % (below $39,828)
NOTE: Rates based on applicant’s median household income as shown in the 2010 Census Data. The Poverty rate involves alleviating an existing health or sanitary problem.

12. Maximum Loan Amount Up to 100% of eligible project costs subject to:
Adequate security
Ability to repay
Applicant’s authority to borrow
Availability of funds

13. Security Public Bodies Non-Profit Corporations revenue bonds
general obligation bonds
special assessment bonds
promissory notes
real estate mortgages
financing statements
security agreements
revenue anticipation bonds
Public Bodies
Non-Profit Corporations

14. Water and Environmental Program

15. Eligibility: Rural communities with populations of 10,000 or less
Cannot obtain financing through bonds or from other lenders at reasonable rates and terms
Must be a Public Body or Non-Profit Corporation
Must have the legal authority to incur debt

16. Small municipal and rural: water systems sewer systems
Facilities eligible for funding
Small municipal and rural:
water systems
sewer systems
NOTE: Projects must primarily benefit rural residential users.

17. USDA funds cannot be used for:
On-site utility system
Business and industrial buildings in industrial parks
Recreational facilities
Lavish facilities
Combined sanitary and storm water facilities

18. Program Interest Rates (as of October 1, 2017)
Present rates (subject to change quarterly): Market % (above $49,785) Intermediate % ($39,828 - $49,785) Poverty % (below $39,828) NOTE: Interest rate is based on applicant’s median household income as shown in the American Community Survey. The Poverty Rate also involves alleviating a documented health or sanitary problem.

19. Terms of Repayment
Useful remaining life of facility or 40 years, whichever is less
Up to 3 year deferral of principal to allow a new facility or service to become operational and financially stable
Interest payments are due during the deferral period
No prepayment penalty

20. Maximum Loan Amount Up to 100% of eligible project costs subject to:
Adequate security
Ability to repay
Applicant’s authority to borrow funds
Availability of funds

21. Grants Cannot be received with a guaranteed loan
Are used to supplement direct loans to reduce user rate costs to a reasonable level (at least 1.0% MHI)
Cannot exceed 75% of eligible costs for projects eligible for poverty rate or 45% for intermediate rate (80% to 100% State Non-metropolitan MHI)

22. Emergency Community Water Assistance Grants
Grant to alleviate a significant decline in the quality or quantity of water as a result of an emergency
Repair of distribution lines – up to $150,000
Improvements to water source – up to $500,000
Public body or non-profit corporation in a rural area with a population of less than 10,000
Simplified application process
Abbreviated PER and ER

23. SEARCH Grants
Grant for feasibility studies, design assistance and technical assistance
Not to exceed $30,000
Public body or non-profit corporation in a rural area with a population of less than 2,500
MHI of less than $39,828
No resources to pay predevelopment expenses (PER, ER, etc.)

24. Predevelopment Planning Grants (PPG)
Grant for development of PER and ER
Not to exceed $30,000 or 75% of eligible costs, whichever is less
Public body or non-profit corporation in a rural area with a population of less than 10,000
MHI of less than $39,828
No resources to pay predevelopment expenses (PER, ER, etc.)

25. Security Public Bodies Non-Profit Corporations revenue bonds
general obligation bonds
special assessment bonds
promissory notes
real estate mortgages
financing statements
security agreements

26. RD Apply
Electronic submission of waste and waste disposal application
Effective October 1, 2015
Click on “Help” in upper left corner for Customer User Guide and You Tube Videos
Click on “Help” in upper left corner for Customer User Guide and You Tube Videos

27. A few pointers: Contact USDA early
If the request involves any construction or renovation, you will need an Architect
Any construction method other than design/bid/build will need National Office concurrence
A financial feasibility report will be required. An examination opinion from a CPA may also be required.
Some projects may include Historic Preservation involvement

28. USDA GEORGIA RURAL DEVELOPMENT AREA OFFICES
Monroe
Cartersville
Monroe
Fort Valley
Sandersville
Tifton
Douglas
Cartersville
Sandersville
Fort Valley
Douglas
Tifton

29. Contact Information
USDA Georgia Rural Development Contacts:
Jack Stanek, Acting State Director
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Kathy L. Ross, Acting Community Programs Director
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Debra Bell-Dison – Area Director (Area 5)
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Georgia USDA webpage ~