FY 2022 Community Facilities Direct Loan and Grant Program

October 26, 2021

This is an excellent funding opportunity for our smaller localities. Few grant programs fund brick and mortar projects (town hall, police/fire station, etc.).

Grant

FY 2022 Community Facilities Direct Loan and Grant Program

CFDA #

10.766

Federal Department

Agriculture, Department of (USDA)

Related Agency

Agriculture

Solicitation Released

10-01-2021

Application Due Date

09-30-2022

Yes

Rolling Due Date

Eligible Applicants

Eligible applicants are:

Public bodies
Community-based nonprofit corporations
Federally recognized tribes
Facilities supported through this program must serve the rural area where they are or will be located. Rural areas include cities, villages, townships, and towns, including federally recognized tribal lands, with no more than 20,000 residents according to the latest U.S. Census data, which can be found online at www.census.gov.

Additionally, in order to be eligible, applicants must:

Have the legal authority to borrow money, obtain security, and repay loans; and to construct, operate, and maintain the proposed facilities
Be unable to finance projects from their own resources and/or through commercial credit at reasonable rates and terms
Priority will be given to projects that:

Serve communities with populations of 5,500 or fewer
Serve low-income communities having a median household income below 80 percent of the state non-metropolitan median household income

Eligible Activities and Uses

The purpose of this program is to provide affordable funding to develop essential community facilities in rural areas. Projects supported through this program must demonstrate substantial community support, and facilities must serve the rural area where they are or will be located. Rural areas must have no more than 20,000 residents according to the latest U.S. Census data, which can be found online at www.census.gov.

For the purposes of this program, 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 in a primarily rural area, and does not include private, commercial, or business undertakings. 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
Priority will be given to projects that:

Serve communities with populations of 5,500 or fewer
Serve low-income communities having a median household income below 80 percent of the state non-metropolitan median household income
Funds may be used to purchase, construct, and/or improve essential community facilities; purchase equipment; and pay for related project expenses. Other items that may be included in a loan include reasonable and necessary fees for:

Legal
Architectural and/or engineering
Fiscal advisors
Environmental
Archaeological
Mitigation measures
Planning
Establishing or acquiring rights

Minimum and Maximum Award

Grant assistance is provided on a graduated scale, with smaller communities with the lowest median household income being eligible for projects with a higher proportion of grant funds. Grant assistance is limited to the following percentages of eligible project costs:

Maximum of 75 percent if:
The project is located in a rural community having a population of 5,000 or fewer
The median household income of the service area is below the higher of the poverty line or 60 percent of the state non-metropolitan median household income

Maximum of 55 percent if:
The project is located in a rural community having a population of 12,000 or fewer
The median household income of the service area is below the higher of the poverty line or 70 percent of the state non-metropolitan median household income

Maximum of 35 percent if:
The project is located in a rural community having a population of 20,000 or fewer
The median household income of the service area is below the higher of the poverty line or 80 percent of the state non-metropolitan median household income

Maximum of 15 percent if:
The project is located in a rural community having a population of 20,000 or fewer
The median household income of the service area is below the higher of the poverty line or 90 percent of the state non-metropolitan median household income

Matching and Cost Sharing

There are no stated matching requirements for this program.

Funding Details

An unspecified amount of funding is available to support grants and low-interest direct loans through this program. Awards may be provided as combinations of grants and loans.

Grant awards will be contingent upon the availability of grant funding. Funds may be combined with commercial financing to finance projects if all eligibility and feasibility requirements are met.

Link to background information

https://www.rd.usda.gov/programs-services/community-facilities/community-facilities-direct-loan-grant-program

Fiscal Year

FY 2022

Award Announcement Date