USDA Rural Development Under Secretary Xochitl Torres Small announced the Department is expanding access to four loan guarantee programs that provide funding to help rural communities create jobs and improve local infrastructure.
This expansion continues the Department’s regulatory reforms to make it easier for communities and lenders to access USDA funding. The OneRD Guarantee Loan Initiativereduced paperwork and adopted a common loan note guarantee application for the Water and Waste Disposal Loan Guarantee Program; the Community Facilities Guaranteed Loan Program; the Business and Industry Guaranteed Loan Program; and the Rural Energy for America Guaranteed Loan Program.
Today’s improvements include allowing eligible entities to use the Business and Industry Guaranteed Loan program to finance rural broadband and telecommunications projects that are not eligible for funding under USDA Rural Utilities Service programs. Also, the Department has clarified when utility projects that serve rural and non-rural areas are eligible for a USDA loan guarantee.
The Department is no longer requiring lenders to maintain a minimum 50 basis points servicing fee from holders or other participants in the guarantee. Additionally, USDA now says it will consider loan guarantees for infrastructure and business projects in addition to those listed in the initial October 2020 regulation.
For more information on the regulatory changes and how to apply to the programs under this initiative, visit www.rd.usda.gov/onerdguarantee
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usd.