1. Maximizing Opportunities for Rural Community Development
Increasing Economic Development
Enhancing the Quality of Life

2. Rural Development = Economic Development
Over 40 Loan and Grant Programs
Business - Creates jobs by funding and growing businesses
Community Facilities - Addresses needs for community infrastructure such as police, fire and rescue stations, hospitals, libraries, schools and town halls
Utilities - Addresses needs for basic services like clean water, sewers and waste disposal, electricity, and telecommunications/broadband
Housing - Works to eliminate substandard housing by helping people buy, rent or build decent housing

3. Business & Industry Guaranteed Loan Program
The primary goal of this program is to help create and retain jobs in rural communities by bolstering the availability of private credit by guaranteeing loans for rural businesses.
Eligible “Rural” Area = Any area other than a city or town with a population greater than 50,000 inhabitants, and the urbanized area of that city/town per last decennial U.S. census (2010).
Eligible Borrowers:
Any legal entity, Federally recognized tribal groups, public bodies, cooperative organizations, individuals, and some nonprofits (check with RD*)
Individual borrowers must be U.S. citizens or legal permanent residents. Private entity borrowers must demonstrate loan funds will remain in the U.S. and the project will primarily create/retain jobs for rural U.S. residents.

4. Business & Industry Guaranteed Loan Program
Funds can be used for:
Business conversion, enlargement, repair, modernization or development
Purchase and development of land, easements, rights-of-way, buildings or facilities
Purchase of equipment, leasehold improvements, machinery, supplies or inventory
Debt refinancing when refinancing improves cash flow and creates or saves jobs
Business and industrial acquisitions when the loan will create or save jobs
Maximum amount of guarantee:
80% for loans of $5 million or less
70% for loans between $5 and $10 million
60% for loans exceeding $10 million, up to $25 million

5. Rural Energy for America Program (REAP)
Provides guaranteed loan financing and grant funding to agricultural producers (at least 50% of gross income must come from ag operations) and rural small businesses for renewable energy systems or to make energy efficiency improvements.
Renewable Energy System (RES) = solar, wind, geothermal, biomass, etc.
Energy Efficiency Improvement (EEI) = high energy HVAC, insulation, lighting, cooling/refrigeration units, doors/windows, replacement of energy-efficient equipment

6. Rural Energy for America Program (REAP)
Guaranteed Loans
Min $5,000 / Max $25 million – up to 75% of total eligible project costs *
Grants
Renewable Energy Systems = 25% of project cost/$500,000 maximum
Energy Efficiency Improvements = 25% of project cost/$250,000 maximum
*Combined guaranteed loan and grant funding up to 75% of eligible project costs maximum

7. Community Facilities Program
Provides affordable financing to develop essential community facilities
in eligible 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 and does not include private, commercial or business undertakings.
Eligible “Rural” Area = Unincorporated areas and cities/towns with no more than 20,000 residents.
Eligible applicants: Public bodies, public non-profit corporations, Federally-recognized Tribes

8. Community Facilities Program
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

9. Community Facilities Program
Funding available:
Long-term, low-interest direct loans
Up to 40-year payback, based on useful life of the facility financed
Fixed interest rate, based on need for project and median household income of area served
Grants*
Loan Guarantees
*Grant funding is extremely limited. Small communities with a population of 5,000 or less and low-income communities having a median household income below 80% of the state nonmetropolitan household income ($43,673) receive highest priority for grant funding. In most instances, projects which receive grant assistance are highly leveraged with other loan and grant awards.

10. Water and Environmental Program
Provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to entities that serve rural households and businesses.
Eligible “Rural” Area = Unincorporated rural areas and cities/towns with no more than 10,000 residents.
Eligible applicants: Public bodies, private non-profit corporations, Federally-recognized Tribes

11. Water and Environmental Program
Funds may be used to finance the acquisition, construction or improvement of:
Drinking water sourcing, treatment, storage and distribution
Sewer collection, transmission, treatment and disposal
Solid waste collection, disposal and closure
Storm water collection, transmission and disposal
In some cases, funding may also be available for related activities such as:
Professional services (engineering, environmental consultant, legal fees)
Land acquisition, water and land rights, permits and equipment
Start-up operations and maintenance
Interest incurred during construction
Purchase of facilities to improve service or prevent loss of service

12. Water and Environmental Program
Funding available:
Long-term, low-interest direct loans
Up to 40-year payback, based on useful life of facilities being financed
Fixed interest rate, based on need for project and median household income of service area
Grants*
Loan Guarantees
*If entity is eligible and funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable, provided there is a demonstrated financial need for grant assistance.

13. Section 502 Single Family Housing Loans
Affordable, Decent & Safe Housing
“A Place to Live”
Section 502 Single Family Housing Loans
Assists applicants in obtaining decent, safe and sanitary housing in eligible rural areas. Funds can be used to build, repair, renovate or relocate a home.
Eligible “Rural” Area = Generally, unincorporated areas and cities/towns with no more than 10,000 residents.
Direct Loans:
Low and very-low income families/households
Owner-occupied
May provide payment subsidy
Up to 100% financing (no down-payment)
Guaranteed Loans:
Moderate-income families/households

14. Section 504 Single Family Housing Repair Loans & Grants
Affordable, Decent & Safe Housing
“A Place to Live”
Section 504 Single Family Housing Repair Loans & Grants
Provides assistance to repair, improve or modernize homes
Applicants must own their home and the property it sits upon
Very-low income families/households
Loans up to $40,000
If 62 and over, potential for grant up to $10,000
(grants must be for health and safety issues)
Examples of eligible use of funds:
New Roofs
Weatherization
Leveling of home
Electrical or plumbing repairs
Septic systems
Water wells
Accessibility

15. Section 515 Rural Rental Housing Multi-Family Housing Loan Guarantees
Affordable, Decent & Safe Housing
“A Place to Live”
Section 515 Rural Rental Housing
Provides affordable multi-family rental housing for low-income, elderly, or disabled individuals and families in eligible rural areas. Rental subsidy may be available to tenants.
Multi-Family Housing Loan Guarantees
Works with qualified private-sector lenders to provide financing to qualified borrowers to increase (build or preserve) the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns.
Eligible “Rural” Area = Rural areas and towns with 35,000 or fewer people
Eligible borrowers: Most state and local governmental entities; Nonprofit organizations;
For-profit organizations, including LLC’s; Federally-recognized Tribes

16. USDA - Texas

17. Contact Information
Local Area Office
Hillsboro Area Office
1502 Highway 77 North
Hillsboro, Texas 76645
Phone – x 4
Fax –
Rural Eligibility determination website:
USDA is an equal opportunity provider, employer, and lender.