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2 min read

USDA Rural Development: A Guide to Loan Guarantees and Grants

USDA Rural Development: A Guide to Loan Guarantees and Grants

Mobile clinics offer a solution to reach communities with inadequate healthcare access in rural areas and underserved communities. However, starting and running a mobile clinic can be a challenging and expensive initiative. Luckily, the USDA Rural Development offers financing solutions for mobile clinics through loan guarantees, community facility grants, and rural economic development loan and grant programs. In this blog post, we'll outline the features of each funding program, the loan details and rates, grant details, the eligibility criteria, and how to apply for them.

 

1. Loan Guarantees

The USDA Rural Development Loan Guarantee Program can provide up to 90% guarantee for loans of up to $25 million for rural businesses, non-profit ventures, public entities, and cooperatives. This program helps expand economic opportunities and creates jobs in underserved communities. Eligibility criteria include the location of the project, job creation potential, and improvement in the local economy. The interest rates are negotiated between the lender and the borrower, with the maximum term being 30 years. Lenders can be commercial banks, credit unions, or farm credit system institutions. To apply for this loan guarantee, interested parties should first contact a participating lender in their area.

 

2. Community Facility Grants

The USDA Community Facilities Grant Program offers grants to fund essential community facilities in rural areas. These facilities include but are not limited to healthcare clinics, hospitals, and fire stations. The maximum grant amount is $150,000, and the funds can be used for construction, equipment purchases, and other project-related expenses. Eligibility criteria include the project's location, population, and community need. The grants are awarded on a competitive basis, and the application consists of a project proposal and supporting documentation. The application process is done online via the USDA Rural Development website.

 

3. Rural Economic Development Loan and Grant Program

This program provides funding through grants and loans for rural projects that promote economic development. The maximum grant amount is $500,000, and the maximum loan amount is $2 million. Priority is given to projects that address regional economic concerns such as job creation or retention and business expansion or development. Eligible applicants include public entities, non-profit organizations, and Federally-recognized tribes. The interest rate for the loans is fixed and at or below market interest rates depending on the median household income of the area where the project is located. To apply for this program, applicants should submit their project proposals to their local USDA Rural Development office.

 

4. Who Can Receive Funding:

Loan guarantees and grants are awarded to entities like non-profit organizations, cooperatives, public entities, and small rural businesses. Mobile clinics in general are eligible for funding under the community facility grants program, while those under specifically business entities may receive funding under the loan guarantee program and the rural economic loan and grant program. Eligibility criteria for each program vary, and interested parties should check their eligibility first before applying.

 

The USDA Rural Development offers multiple funding options for mobile clinics, including loan guarantees, community facility grants, and rural economic development loan and grant programs. To get started in securing funding for your mobile clinic, take a closer look at each program and its eligibility criteria, and reach out to a lender or your local USDA Rural Development office for further information on how to apply.

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