The Rural Economic Development Loan and Grant program provides funding for rural projects through local utility organizations. USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility then is responsible for repayment to USDA.
USDA provides grants to local utility organizations which use the funding to establish Revolving Loan Funds (RLF). Loans are made from the revolving loan funds to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to USDA.
Funding Agency or Organization: USDA-RD
Funding Website: https://www.rd.usda.gov/programs-services/rural-economic-development-loan-grant-program
Local Match Requirement: N/A
Award Amount: Max – $300,000 for grants
Max – $1 million for loans
Deadline:
Competitive: Competitive
Eligible Applicant: Business
Project Categories: Economic Development, Infrastructure and Housing