USDA Community Facilities Direct Loan & Grant Program
USDA Rural Development
Grants up to 75% of costs
Build rural community infrastructure with USDA support
USDA Rural Development provides direct loans and grants to build or improve essential community facilities in rural areas — healthcare clinics, fire stations, community centers, libraries, childcare centers, and food banks. Grants cover up to 75% of project costs for the most rural, lowest-income areas. Borrowers include local governments, nonprofits, and tribal governments. Loans carry below-market interest rates. This is NOT a business grant — it funds community infrastructure serving rural populations.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $10,000
- Realistic amount
- Most CF grants range from $100,000–$2,000,000. Small rural fire departments commonly receive $200,000–$500,000 for equip…
- Deadline
- Rolling — no annual deadline. Applications submitted to the state USDA Rural Development office any time. Funding subject to annual congressional appropriations.
- Status
- active
- States
- Nationwide
- Payment model
- reimbursement
Who qualifies
- Public bodies: municipalities, counties, special-purpose districts (fire, water, utility), school districts
- Non-profit organizations: 501(c) entities serving a public purpose in a rural area (food banks, rural health clinics, community action agencies, childcare nonprofits)
- Federally-recognized tribal governments and tribal entities
- Project must be in a rural area: community population of 20,000 or fewer not adjacent to an urbanized area of 50,000+
- Applicant must be unable to finance the project through commercial credit at reasonable terms
- Project must be an essential community facility — healthcare, public safety, educational, or cultural facilities that primarily serve the local rural population
- Applicant must demonstrate legal authority to incur debt and operate the facility
- Must have the financial, managerial, and technical capacity to complete and operate the facility after funding
Hard requirements
- Rural location required
What it covers
Eligible expenses
- Construction or renovation of healthcare facilities (clinics, hospitals, behavioral health centers)
- Construction or renovation of public safety facilities (fire stations, emergency dispatch centers, police stations)
- Construction or renovation of community centers, senior centers, and childcare facilities
- Construction or renovation of food banks and emergency food distribution facilities
- Construction or renovation of libraries and educational facilities serving rural communities
- Purchase of equipment essential to the facility operation (medical equipment, fire trucks, library systems)
- Engineering, architectural, and legal fees directly related to the facility
- Land acquisition when necessary for the facility site
- Environmental and site assessment costs
Ineligible expenses
- For-profit business ventures or commercial facilities
- Residential housing or individual homes
- Refinancing existing debt (in most cases)
- Projects primarily serving urban populations
- Political activities or lobbying
- Recreational facilities unless primarily serving essential community needs
- Costs incurred before USDA issues a conditional commitment
How to apply
-
1
Contact your state USDA Rural Development office
CF applications are processed through state RD offices, not Grants.gov. Contact your state office to discuss project eligibility, community population threshold, and income level (determines grant percentage). Find your office at rd.usda.gov/contact-us/state-offices.
~16 hrs
-
2
Determine funding mix (grant vs. loan)
The grant percentage (15%, 45%, or 75%) is calculated by your state office based on your community's population and median household income relative to state and national medians. Work with the state office to model the grant/loan combination — most projects combine both to maximize coverage.
~16 hrs
-
3
Prepare application package
Assemble: project narrative describing the essential community need and how the facility addresses it; preliminary architectural plans and cost estimates; 3 years of audited financial statements; governing board resolutions authorizing the application; evidence of community support (letters from local officials, stakeholder survey); environmental assessment (USDA requires review); and legal authority documentation.
~16 hrs
-
4
Environmental review and obligation
USDA conducts an environmental impact review (NEPA compliance). This is not optional and adds 60–120 days for most projects. Larger projects with potential environmental impacts require more intensive review. After obligation, architectural and engineering work proceeds; construction contracts must comply with Davis-Bacon prevailing wage requirements.
~16 hrs
-
5
Construction and reimbursement
Funds disbursed via reimbursement as construction milestones are met. USDA requires inspections and draw approvals. Projects must comply with federal requirements including Buy American provisions, accessibility standards, and Davis-Bacon wage rates. Post-completion, USDA conducts site visits and monitors loan repayment.
~16 hrs
The grant percentage is determined by your community's income and population — applying from a low-income rural community under 5,500 people often qualifies for the full 75% grant. Know your USDA community income classification before starting.
Deadline & timing
Applications accepted year-round through state USDA Rural Development offices. Larger projects ($1M+) often take 6–12 months from first contact to obligation. Begin outreach 12–18 months before project need. Annual appropriations cycles can cause funding delays in Q4 (July–September) of the federal fiscal year.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.