Funder: Rural Business-Cooperative Service
Due Dates: September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 (quarterly deadlines)
Funding Amounts: Loans: up to $1,000,000 (zero-interest, 10-year term) | Grants: up to $300,000 (20% match required)
Summary: Zero-interest loans and grants to local utilities for pass-through funding to rural projects that create or retain jobs.
Key Information: Applicants must be current/former Rural Utilities Service borrowers or eligible nonprofit utilities; projects must benefit rural areas (population <50,000).
Description
The Rural Economic Development Loan and Grant programs (REDLG) provide financial support to rural projects through local utility organizations. The U.S. Department of Agriculture (USDA) offers zero-interest loans and grants to eligible local utilities, which then re-lend or grant these funds to local businesses or projects that create or retain employment in rural areas. The program aims to stimulate economic growth, support business expansion, and enhance community facilities in rural communities.
Due Dates
- First Quarter: September 30, 2024
- Second Quarter: December 31, 2024
- Third Quarter: March 31, 2025
- Fourth Quarter: June 30, 2025
Applications must be received by 4:30 p.m. (local time) at the USDA Rural Development State Office for the relevant quarterly competition.
Funding Amount
- Loans: Up to $1,000,000 per project, zero percent interest, 10-year term.
- Grants: Up to $300,000 per project to establish a Revolving Loan Fund (RLF); 20% match required from the local utility.
- Up to 10% of grant funds may be used for operating expenses of the RLF.
- The local utility is responsible for repaying the loan to USDA; grants must be repaid upon termination of the RLF.
Eligibility
- Eligible Applicants:
- Current Rural Utilities Service (RUS) electric or telecommunication borrowers.
- Former RUS borrowers who have repaid or prepaid an insured, direct, or guaranteed loan.
- Not-for-profit utilities eligible to receive assistance under the Rural Electrification Act.
- Eligible Areas:
- Projects must be located in rural areas or towns with populations fewer than 50,000 residents.
- Check area eligibility.
- Ultimate Recipients:
- Local businesses, nonprofits, or public bodies benefiting from the utility’s pass-through funding.
Application Process
- Applications are accepted through your USDA Rural Development State Office.
- Work with your local office to obtain required forms and guidance.
- Applications are reviewed quarterly; deadlines are strict.
- Projects may begin after application submission, but funding is not guaranteed until approval.
- How-to-apply video series is available.
Additional Information
- Eligible Uses:
- Business incubators, community development, education/training facilities, medical care facilities, start-up costs, business expansion, and technical assistance.
- Ineligible Uses:
- Loan Terms to Ultimate Recipients:
- Zero percent interest for first-time loans, up to 80% of project costs (20% match required), possible deferral of repayment up to two years for start-ups or community facilities.
External Links
Contact Information