Essential community facilities are broad based, viable facilities that provide lasting services and benefits to the entire community. Normally, under the direction of Rural Development, applicants use interim financing to pay construction costs and CF loans are used for long-term financing. This arrangement encourages participation from commercial banks.
Grant assistance is very limited.
In most instances, projects, which receive grant assistance, have a high priority for funding and are highly leveraged with other loan and grant awards. There is no set maximum loan limits with the Community Facilities direct and guaranteed loan programs. The amount that can be financed is based on realistic project costs, project feasibility and funding availability at the time. Community Facilities programs has eligibility issues that are unique to the type of loan program. A letter from a Lender will be sufficient.