This program provides affordable funding to develop essential community facilities in rural areas. Essential community facilities are defined as facilities that provide an essential service to the local community for its orderly development in a primarily rural area, excluding private, commercial, or business undertakings.

Eligible borrowers for this program include public bodies, community-based non-profit corporations, and Federally-recognized Tribes. The program targets rural areas including cities, villages, townships, and towns including Federally Recognized Tribal Lands with no more than 20,000 residents according to the latest U.S. Census Data.

Funds may be used to purchase, construct, and/or improve essential community facilities, purchase equipment, and pay related project expenses. Examples of such facilities include healthcare facilities, public facilities, community support services, public safety services, educational services, utility services, and local food systems.

The program offers low-interest direct loans, grants, or a combination of both, potentially in conjunction with commercial financing to ensure the feasibility and eligibility requirements of projects are met.