Rural Electronification Act of 1936
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.
10.854
Discretionary
Reissue/Renewal
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.
Total Amount: $90,000,000
Amount Available Towards Broadband (if specified):
Yes
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.
Not Applicable
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.
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.
Not Applicable
See Code of Federal Regulations, 7 CFR, Part 4280.56 and 2 CFR Part 200
Not Applicable
Varies by state. See agency website
March 2023