Rural Economic Development Loan and Grant

The Rural Economic Development Loan and Grant (REDLG) program, administered by the Rural Business-Cooperative Service under the United States Department of Agriculture (USDA), offers financial assistance to promote economic development and job creation in rural areas. Through this program, USDA provides zero-interest loans and grants to local utility organizations, which then pass on the benefits to businesses and projects in rural communities. The overarching goal is to stimulate growth, retain and create employment opportunities, and improve the quality of life in rural America. The primary objective of the REDLG program is to support projects that contribute to economic development and job retention or creation in rural areas. This is accomplished by empowering local utility organizations with financial tools that they can use to invest in community-focused projects. The loan component of the program involves USDA issuing zero-interest loans to local utilities, which subsequently re-lend the funds to businesses for job-creating initiatives. The businesses repay the utilities, and the utilities, in turn, repay USDA. In the case of grants, local utility organizations receive funding to establish revolving loan funds, which are used to finance job-related projects. When these funds are terminated, the original grant is repaid to USDA. Funding for the REDLG program includes two types of financial instruments: loans and grants. The maximum award per loan is $2,000,000, while grants can be awarded up to $300,000. The grant component specifically supports the creation of revolving loan funds that continually support eligible rural projects. This structure enables continuous reinvestment in rural economic development and ensures a long-term impact on local communities. Eligible applicants include nonprofit utility organizations and entities that are current or former borrowers of Rural Development Electric or Telecommunication Programs. Specifically, eligible applicants are nonprofit utilities that have borrowed, repaid, or prepaid insured, direct, or guaranteed loans from USDA. Current borrowers of these Rural Development programs are also eligible, making the grant suitable for established utility organizations with a history of federal financing. To apply, applicants must submit a complete application to their respective USDA Rural Development State Office by 4:30 p.m. local time on the deadline dates. The application deadlines follow a quarterly cycle: September 30, 2024, December 31, 2024, March 31, 2025, and June 30, 2025. There is a cost-sharing or matching requirement associated with this grant. The announcement does not specify application questions or evaluation criteria, and such details are likely available in the full grant announcement or through the relevant USDA state office. The program's key dates include the original posting on August 26, 2024, and a final closing date for applications on June 30, 2025. The archive date is set for July 30, 2025. While the grant appears to operate on a recurring quarterly basis, confirmation about its recurrence beyond this cycle is not provided.