USDA – Community Facilities Guaranteed Loan Program

Reset Funding collaborates with strategic partners to offer financing solutions under the USDA's OneRD Guaranteed Loan Programs. Our expertise lies in packaging and sourcing financing to support rural communities in developing essential facilities that enhance quality of life and promote sustainable development.

Program Overview

The Community Facilities (CF) Guaranteed Loan Program provides loan guarantees to eligible lenders, enabling them to provide financing for the development of essential community facilities in rural areas. These facilities are vital to the health, safety, and success of rural communities and must operate on a non-profit basis. 

The program supports infrastructure that serves the public good and improves the quality of life for rural residents.

Eligible Borrowers

Entities that may qualify for the CF Guaranteed Loan Program include:

• Public bodies (e.g., municipalities, counties, special-purpose districts)
• Federally recognized Tribes
• Non-profit organizations with significant ties to the local community

Eligible Projects

Loan funds can be utilized for a variety of purposes, including:

• Construction, expansion, or improvement of essential community facilities
• Purchase and installation of equipment
• Land acquisition and necessary site preparation
• Refinancing of existing debt related to an essential community facility

Examples of eligible facilities:

• Healthcare facilities (hospitals, clinics)
• Public safety buildings (fire stations, police stations)
• Educational and cultural facilities (schools, libraries, community centers)
• Public services (childcare centers, food banks)

Ineligible Projects

Certain projects are not eligible for CF loans, including:

• Lines of credit
• Owner-occupied and rental housing
• Golf courses or racetracks
• Facilities used for inherently religious activities
• Projects that create a conflict of interest
• Inherently commercial enterprises

Loan Structures and Amounts

Key features of the CF Guaranteed Loan Program include:

• Loan Amounts: $3 million to $100 million
• Repayment Terms: Up to 30 years, fully amortizing. The loan term is determined by collateral and use of funds, with a blended weight calculated for loans financing multiple asset categories.
• Construction Financing: Available with interest-only payments during the construction period.

Fees:

• The Agency charges an initial fee equal to 1% of the loan amount.
• Bank origination fees vary.

Other:

• Collateral: Must be sufficient to protect the interests of the lender and the USDA; typically includes assets being financed or a revenue pledge.
• Capital Stacking: Funds can be combined with other financing sources, including the CF grants and direct loans covering only a portion of the project costs.

By partnering with Reset Funding, businesses can effectively navigate the complexities of the OneRD Guaranteed Loan Programs, ensuring access to the necessary capital to achieve their objectives.