Community Facilities Direct Loan & Grant Program in Michigan

The Community Facilities Direct Loan & Grant Program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial, or business undertakings.

Eligible applicants include public bodies (such as cities, townships, counties, and special districts), community-based non-profit corporations, and Federally-recognized Tribes. Applicants must have the legal authority to borrow money and obtain security for the loan, and be unable to obtain needed funds from commercial sources at reasonable rates and terms.

Funds can be used to purchase, construct, and/or improve essential community facilities, purchase equipment, and pay related project expenses. Examples of eligible projects include health care facilities (hospitals, clinics, nursing homes), public facilities (town halls, courthouses, street improvements), community support services (child care centers, community centers), public safety services (fire stations, police stations, prisons), educational services (museums, libraries), utility services (telemedicine, distance learning), and local food systems (community gardens, food pantries).

Applications for this program are accepted year-round (Rolling). Applicants are encouraged to contact their local USDA Rural Development office to discuss their specific project and application requirements before applying.