USDA Community Facilities Loan Guarantee Program
- Non-profits, public bodies (such as counties, special purpose districts, or other political sub-divisions of a state) including all townships and other areas and federally recognized Indian tribal groups.
- CF loans can be made by commercial or authorized lenders in rural areas including all townships and areas other than cities of more than 20,000 people and their immediately adjacent urban area.
- Purchase and development of land, easements, buildings or facilities.
- Purchase of equipment, leasehold improvements, machinery, supplies, or inventory.
- Loan fees and costs (including 1% CF guarantee fee on guaranteed loan portion only), professional services, and feasibility study costs.
- Refinance existing debt if the debt is a secondary part of the loan (less than 50%), is associated with the project, and if the applicant’s creditors are unwilling to extend or modify terms in order for the new loan to be feasible (applicable to CF Direct Loans only).
- 80% (standard) guarantee on loans with no dollar limit
- 90% (maximum) guarantee can be obtained under special circumstances.
- Below market (generally 100 to 200 basis points) customary commercial interest rate – negotiated by lender and business. Fixed or variable (but not more often than quarterly) tied to a published base rate.
- Working capital – 7 years maximum.
- Equipment – 15 years maximum (or useful life).
- Real Estate – 40 years maximum.
Eligible Applicants
Eligible loan purposes:
Percentage of Guarantee:
Interest Rate:
Terms: