Rural Economic Development Loan and Grant Program (REDL and REDG)

Rural Development State Office contacts

The Rural Economic Development Loan and Grant Program (REDL and REDG) is designed to promote rural economic development and job creation projects.

Eligible projects:

• Business incubators
• Community development assistance to nonprofits and public bodies, particularly for job creation or enhancement
• Facilities and equipment to educate and train rural residents to help economic development
• Facilities and equipment for medical care for rural residents
• Start-up venture costs, including, but not limited to, financing fixed assets such as real estate, buildings, equipment, or working capital
• Business expansion
• Technical assistance

Eligible applicants include:

• Any former Rural Utilities Service borrower who borrowed, repaid, or pre-paid an insured, direct, or guaranteed loan under the Rural Electrification Act
• Nonprofit utilities that are eligible to receive assistance from the Rural Development electric or telecommunication programs
• Current Rural Utilities Service electric or telecommunication borrowers

Grants: Up to $300,000 to establish a revolving loan fund

Loans: Up to $1,000,000

Up to 10% of grant funds may be applied toward operating expenses over the life of a revolving loan fund.

Entities wishing to apply for assistance should contact the appropriate Rural Development State Office contacts to receive further information and copies of the application package.