Water & Waste Disposal 

Loan Guarantees

We help lenders provide affordable financing 

to improve access to clean, reliable water and 

waste disposal systems. Assistance is available 

to public bodies, nonprofit organizations, and 

Federally Recognized Tribes. Eligible uses 

include constructing or improving facilities for 

drinking water, sanitary sewers, solid waste 

disposal, and storm water disposal facilities. 

Guarantees may be up to 90 percent of the 

loan amount.

For More Information

Information on all USDA Rural Development 

programs is available online or from the office 

serving your area.

www.rd.usda.gov

1 (800) 670-6553 (toll free)

USDA is an equal opportunity 

provider, employer, and lender.

PA-2179

January 2016

Rural Energy for 

America Program (REAP)

We partner with lenders to assist agricultural 

producers and rural small businesses to use 

energy effectively and lower costs. Funds may be 

used to purchase, install, and construct 

renewable energy systems or make energy 

efficiency improvements. Guarantees may be up 

to 85 percent of the total eligible project cost. 

Terms range between 7 and 30 years. Opportunities 

for Lenders

From USDA Rural Development
Expand your portfolio, 

reduce your risk.

Is your lending institution looking for 

ways to better serve your community? 

USDA Rural Development guaranteed 

lending programs may be able to help. 

USDA offers a number of programs guaranteeing 

loans for housing, community facilities, business 

purposes, and utilities, for up to 90 percent of the 

loan amount in most cases. By removing most of 

the lender’s risk, such guarantees often make it 

easier to lend to underserved communities and 

meet obligations under the Community 

Reinvestment Act.

Assistance under these programs is available to 

applicants in areas designated as “rural.” Under 

law, the definition of “rural area” is different for 

each program.

Community Facilities 

Loan Guarantees

We provide loan guarantees to help build 

essential community facilities. Community 

Facilities financing can be used to build, 

expand, or improve facilities or services for 

healthcare, education, public safety, and public 

services. Applicants can include public bodies, 

nonprofit organizations, and Federally 

Recognized Tribes. The maximum guarantee 

available is 90 percent of the eligible loss, and 

50 percent for recreational projects.

Single Family 

Home Loan Guarantees

This program offers lenders another mortgage 

product by expanding access to housing. It 

assists approved lenders in providing low- and 

moderate-income applicants with the 

opportunity to own a modest primary residence. 

We reduce the risk of extending 100-percent 

loans to homebuyers by providing a 90-percent 

loan note guarantee. Applicants may buy, build, 

or improve a home in an eligible rural area. Our 

automated loan closing system saves you time 

and money. 

Multi-Family Housing 

Loan Guarantees

Under this program, we work with approved 

lenders to provide financing to increase the supply 

of rural rental housing designed for low- and 

moderate-income residents. They may include 

State and local governmental entities, Federally 

Recognized Tribes, nonprofit organizations, and 

businesses. For-profit entities may receive a 

maximum guarantee of 90 percent and nonprofit 

entities may receive up to 97 percent. Terms may 

range from 25 to 40 years, with a fixed interest rate.

Business & Industry 

Loan Guarantees

This program provides financial backing for rural 

businesses. Applicants work with private-sector lenders. 

USDA Rural Development provides a guarantee for 

the loan. Assistance is available to virtually any 

legally organized entity. These loan guarantees make 

it possible for private lenders to extend more credit 

than they would typically be able to extend. 

The maximum amount of loan guarantee varies,

up to 80 percent for loans of up to $5 million, up 

to 70 percent for loans between $5 and $10 million, 

and up to 60 percent for loans exceeding $10 million.

The borrower’s headquarters may be based within 

a larger city as long as the project is located in an 

eligible rural area.