Category: Federal Incentives, Grants & Loans
AGENCY: US Department of Agriculture (USDA) Rural Development (RD), Rural Utility Service (RUS)
DESCRIPTION: The purpose is to provide zero interest loans to electric and telephone utilities financed by the Rural Utility Service (RUS) to promote sustainable rural economic development and job creation projects.
• RUS utility:?
• Must not be delinquent on federal debt or in bankruptcy proceedings;?
• Is required to re-lend the loan proceeds, at zero percent interest, to an eligible third-party recipient. Priority is given to projects that are physically located in rural areas having a population of less than 2,500 people; and?
• Is responsible for repaying the loan to Rural Business-Cooperative Service in the eventof delinquency or default by the third-party recipient.
• Third-party recipients:
• Business expansions and start-ups, including cost of buildings, equipment, machinery, and land site development and working capital;
• Community infrastructure necessary for economic development and job creation purposes;
• Community facilities and services necessary for economic development and job creation purposes;?
• Education facilities and equipment to provide training and job enhancement skills to rural residents; and?
• Business incubator projects to assist in developing emerging enterprises.
• Terms: RUS utility will repay the principal amount of the loan within 10 years. Terms for the third – party recipient is similar.
• Eligibility is limited to Rural Utility Service (RUS) electric and telephone utilities, and third-party recipients having corporate and legal authority to incur debt.
• For more information, visit http://www.rurdev.usda.gov/ or call (202) 690-1522.