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 to support orderly community development. Eligible facilities provide essential community services, including health care facilities, town halls, child care centers, fire departments, police stations, libraries, and local food systems.

Eligible applicants include public bodies, community-based non-profit corporations, and Federally Recognized Tribes. Applicants must possess the legal authority to borrow money, obtain security, repay loans, and construct, operate, and maintain the proposed facility. Applicants must also demonstrate that they are unable to finance the project from their own resources or through commercial credit at reasonable rates and terms. Priority points are awarded to small communities with populations of 5,500 or fewer and low-income communities with median household incomes below 80 percent of the state nonmetropolitan median household income.

Projects must be located in rural areas, including cities, villages, townships, and tribal lands with 20,000 or fewer residents according to the latest U.S. Census data. The proposed facility must serve the rural area where it is or will be located, demonstrate substantial community support, and complete an acceptable environmental review. Funds may be used to purchase, construct, or improve essential community facilities, purchase equipment, and cover related project costs.

Applications are accepted on an ongoing, year-round basis from October 1 through September 30. Prospective applicants must contact their local USDA Rural Development state or area office to discuss project details and review specific requirements prior to applying. Applicants must also obtain a Unique Entity Identifier (UEI) and maintain active registration in the System for Award Management (SAM.gov).