Rural Housing Service Community Facility Loan

A rural loan can be obtained through a local rural housing service community facility. This facility, which exists through the U.S. Department of Agriculture (USDA), provides loans to rural communities that seek to establish community facilities. These loans are made through private lenders within the rural community with the backing of the federal government or directly from the community facilities program of the USDA.

Community Facility Loan Programs

The loans are specifically used to build schools, fire and police stations, hospitals and other community facilities within a rural community. Private lenders receive loan guarantees through the USDA to provide these loans in the case of the loan guarantee program. The USDA provides direct funds through the Community Facilities Direct Loan program, which are available to public, not-for-profit organizations and Indian tribes within a rural community.

Use of Community Facility Program Funds

The funds may be used for both new construction projects as well as refinancing existing debt on a facility in use. The allocation of dollars from the community facilities program is based on a feasibility study and generally can be approved within 45 days of a loan application.