USDA, Rural Development
216 Spring Run Road, Room 103
Mill Hill, PA 17751

Website: www.rurdev.usda.gov/pa

Business and Industry Loan Guarantees

Targeted age groups: All areas except cities of more than 50,000

Guaranteed funding for most legal business purposes including acquisition, start-up and expansion of businesses that create rural employment. Cannot finance farms, golf courses, gambling and certain other businesses.

Community Facilities Programs

Eligibility: Up to 100% of market value and up to 40 years or life of security.
Targeted age groups: Rural areas and populations of 20,000 or less

Public bodies and non-profit corps apply for direct loans or guarantees to build facilities, buy equipment and pay operating costs. Can include funds for fire and rescue, telecommunications for schools, libraries, hospitals, etc.

502 Homeownership Program

Eligibility: Based on income, repayment ability, credit history, assets, etc.
Targeted age groups: Low income individuals or families

Full financing to buy, build or rehabilitate rural homes as the applicant’s permanent residence. Loans amortized for 33-38 years. The government subsidizes most loans. Applicant will pay current interest rate as maximum and 1% rate as minimum.

Rental Housing for Families and Elderly

Eligibility: Up to 100% of market value (non-profits); 95 - 97% (for limited profits/LIHTC). Up to 30 years with 50-year amortization. Interest credit available.
Targeted age groups: Rural areas designation on RD Place list

Individuals and organizations apply for guarantees or direct financing to assist in new construction or substantial rehabilitation of rental housing. Program provides safe, well-built affordable rental housing for rural Americans.

504 Repair Program

Eligibility: Based on income, repayment ability (loans), credit history (loans), assets, home ownership, age (grants), etc.
Targeted age groups: Very low income individuals or families

Loan and/or grant to help very-low income applicants remove health and safety hazards or repair their homes. Loans are a fixed 1% interest rate on a maximum of 20-year term. Maximum loan is $20,000 and maximum grant is $7,500.

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