USDA Community & Facilities Guaranteed Loan Program (CF)

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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.

How can loan funds be used? Eligible uses include, but are not limited to: 
  • 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

What can loan 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

What is considered an eligible area?
  • Rural areas not in a city or town with a population of more than 50,000 inhabitants, with certain exceptions
  • The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area

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.

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

Contact one of our lending experts.

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Frayne Bentley

SBA Regional Executive

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David Matthews

USDA Business Development Officer