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Department of Agriculture - Rural Economic Development Loan and Grant Program (REDLG)

Agency/Department
Federal Agency/Bureau
Rural Business-Cooperative Service
Program Name
Rural Economic Development Loan and Grant Program (REDLG)
Authorizing Legislation

Rural Electronification Act of 1936

Program Overview

The Rural Economic Development Loan and Grant program provides funding for rural projects through local utility organizations. USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility is responsible for repayment to USDA.

CFDA

10.854

Type of Funding

Discretionary

Link to application site, NOFO, FOA, or Grants.gov (if different from program website above)
Notice of Funding Opportunity (NOFO) or Federal Opportunity Announcement (FOA) Type

Reissue/Renewal

Important Dates (if applicable)

Application deadlines for quarterly funding competitions are no later than 4:30pm (local time) on: Q1 – Sept. 30, 2021; Q2 – Dec. 31, 2021; Q3 – Mar. 31, 2022; Q4 – June 30, 2023.

FY2023 Appropriations Amount

Total Amount: $90,000,000
Amount Available Towards Broadband (if specified):

Matching Requirement

Yes

Complementary Federal Funding Option

A REDLG loan or grant can be used with other funding opportunities, but it can be difficult to match up the timing with other loans and grants.

Broadband-related Program Purpose/Eligible Expenditures
Speed/Technical Requirement for Broadband Infrastructure

Not Applicable

Eligible Recipients
Criteria for Eligible Recipients

Eligible recipients can be any former RUS borrower that pre- or repaid an insured, direct, or guaranteed loan; any nonprofit utility eligible to receive assistance from the RD Electric or Telecommunication Programs; and any current RD Electric or Telecommunication Programs Borrowers.

Grant Beneficiaries (if different from eligible recipients)

Lending intermediaries may only lend for projects in rural areas or towns with a population of 50,000 or fewer. Additionally, for loans, either the Ultimate Recipient or the Intermediary Lender must provide supplemental funds for the project equal to at least 20% of the loan to the intermediary. Projects can include, but are not limited to, business incubators, community development assistance to nonprofits and public bodies (particularly for job creation or enhancement), facilities and equipment for education and training for rural residents to facilitate economic development, facilities and equipment for medical care to rural residents, start-up venture costs (such as financing fixed assets like real estate, new or existing buildings, equipment, or working capital), business expansion, or technical assistance.

Programmatic Resources

Not Applicable

Reporting Requirements

See Code of Federal Regulations, 7 CFR, Part 4280.56 and 2 CFR Part 200

Publicly-available programmatic data

Not Applicable

Contact Information

Varies by state. See agency website

Updated

March 2023

Funding Guide
USDA_REDLG.pdf (512.12 KB)