Public libraries are culturally and technologically critical

to the rural communities they serve. They are important

to bridging the digital divide, enhancing economic vitality, and improving the quality of life in rural America.

Secretary of Agriculture Tom Vilsack has designated

$100 million in USDA Rural Development Community

Facilities Program funding for public libraries.

The Community Facilities funds will give rural communities the opportunity to improve their library facilities,

enhance educational opportunities, and improve economic conditions. Library construction or renovation

projects will also create and save jobs in the construction and library service fields.

General Program Description

The Community Facilities Program provides loans and

grants to assist in the development of essential community facilities in rural areas and towns of up to 20,000 in

population. USDA Rural Development is committed

through its Community Facilities Program in ensuring

that essential facilities – such as health care clinics,

police and fire stations, schools, libraries, and child care

centers – are readily available to all rural Americans.

Direct loans can be made to applicants who are unable

to obtain commercial credit. Rural Development can

guarantee loans made and serviced by lenders, such

as banks, savings and loans, and mortgage companies

that are part of bank holding companies or members of

the Farm Credit System. 

Community Facilities Grants are authorized on a graduated scale. Applicants located in smaller communities

with low populations and low incomes will receive a

higher percentage of grants. Grant funding limitations

are based on population and income, economic feasibility and availability of funds.

Who May Apply?

Loans and grants are available to public entities, such

as municipalities, counties, and special-purpose districts, as well as non-profit corporations and tribal governments. Applicants must have the legal authority necessary for construction, operation, and maintenance of

the proposed facility. They must also be financially

sound and able to organize and manage the facility

effectively.

Repayment of the loan must be based on tax assessments, revenues, fees, or other sources of money sufficient for operation and maintenance, reserves, and sufficient debt retirement. Rural Development is aware that

libraries are not revenue generating and depend heavily on local property taxes to maintain operations.

Although there may be challenges in developing these

projects, the agency will spur interest in library facilities

by providing grant funding opportunities that are not

typically available.

How May Funds Be Used?

Funds may be used to construct, enlarge, or improve

public libraries. This can include costs to acquire land

needed for a facility, pay necessary professional fees,

and purchase equipment required for operation. Funds

can be used to purchase shelving, furniture, computers,

audio-visual equipment, distance learning equipment,

and bookmobiles. A loan may be made in combination

with other Community Facilities assistance such as a

grant, applicant contributions, or loans and grants from

other sources.

What Are the Terms?

The maximum term for all loans is 40 years. However,

the repayment period is limited to the useful life of the

facility or any statutory limitation on the applicant’s borrowing authority.

What Is the Interest Rate?

Interest rates for direct loans are based on current market yields for municipal obligations, although loans for

facilities impacting prime or unique farmland may

require a slightly higher rate. Certain other direct loans

may qualify for a lower interest rate, depending upon

the median household income of the residents of the

Community Facilities Loans and Grants for

Rural Libraries

Rural Housing and Community Programs
community to be served. The interest rates for guaranteed loans may be fixed or variable and are determined

by the lender and borrower, subject to USDA review

and approval.

What Security Is Required?

Bonds or notes pledging taxes or assessments will be

accepted as security if they meet statutory requirements. Where State laws permit, a mortgage may be

taken on real and personal property. Tax-exempt notes

or bonds may be issued to secure direct loans but cannot be used for guaranteed loans.

What Is the Maximum Grant Assistance?

Depending on funding availability, USDA Rural

Development will provide up to $500,000 in additional

dedicated grant funds to each of our State offices for

library projects.

How Are Applications Processed?

Applications are handled by USDA Rural Development

field offices. Rural Development staff will be glad to discuss a community’s needs and the services available

from USDA. Field staff can provide application materials

and current program information and assist in the

preparation of an application. You may also visit our

Web site at http://www.rurdev.usda.gov/rhs.

Other Rural Development Opportunities for

Rural Libraries

USDA Rural Development published a Notice of

Funding Availability to provide financial resources for

the deployment of broadband service in rural America.

The notice includes a grant funds set-aside for program

awardees to bring broadband connectivity to rural

libraries. These funds can be used in combination with

Community Facilities assistance. For more information

on this funding opportunity, including Outreach and

Training Workshops, please visit http://www.broadbandusa.gov.

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For More Information

Rural Development field office location are generally

listed in the local telephone directories under the heading U.S. Government, Department of Agriculture.

Interested applicants and lenders may also contact the

Housing and Community Programs National Office staff

at the following address:

USDA Rural Development

Community Programs Division

1400 Independence Avenue, S.W.

Washington, D.C. 20250-0700

Telephone: (202) 720-1490

Toll-Free Number: (800) 670-6553

Fax: (202) 690-0471

PA 2041

Published February 2010

The U.S. Department of Agriculture (USDA) prohibits

discrimination in all its programs and activities on the

basis of race, color, national origin, age, disability, and

where applicable, sex, marital status, familial status,

parental status, religion, sexual orientation, genetic

information, political beliefs, reprisal, or because all or a

part of an individual's income is derived from any public

assistance program. (Not all prohibited bases apply to

all programs.) Persons with disabilities who require

alternative means for communication of program information (braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice

and TDD). 

To file a complaint of discrimination write to USDA,

Director, Office of Civil Rights, 1400 Independence

Avenue, S.W., Washington, D.C. 20250-9410 or call

(800) 795-3272 (voice) or (202) 720-6382 (TDD).

USDA is an equal opportunity provider and employer.