Community Facilities Guaranteed Loan Program in Michigan

The Community Facilities Guaranteed Loan Program in Michigan provides loan guarantees to eligible private lenders to help finance essential community facilities in rural areas. The goal of the program is to develop and improve essential public services and public facilities that enhance the quality of life and support the economic development of rural communities. Funds help rural communities obtain private commercial credit on reasonable terms.

Eligible borrowers include public bodies such as municipalities, counties, special-purpose districts, and federally recognized Native American tribes, as well as community-based non-profit corporations. The facility must serve a rural area with a population of 20,000 or fewer residents. Borrowers must demonstrate significant community support and the financial ability to repay the underlying debt.

Eligible projects include essential community facilities providing health care, public safety, education, and other vital public services. Examples include hospitals, clinics, nursing homes, fire stations, police stations, public town halls, community centers, childcare facilities, and libraries, along with necessary equipment, furnishings, and related project development costs.

Applications are accepted on a continuous, rolling basis year-round. Borrowers work directly with an eligible private or commercial lender (such as commercial banks, credit unions, or Farm Credit institutions). The lender submits the guarantee application to USDA Rural Development via the OneRD Guarantee system or through the USDA Rural Development Michigan State Office.