/ en Thu, 26 Jun 2025 21:58:47 -0500 Thu, 09 Nov 17 10:59:35 -0600 /federal-capital-financing/federal-capital-financing <p>This site names each program, its focus, the types of financing available, and eligibility requirements. Links to each program's website and other capital financing information resources are provided for more information.</p><div class="container row"><h3 class="page-header">Preliminary Background on Federal Capital Programs</h3><div class="table-responsive"><table class="table table-bordered"><thead><tr><th>Program</th><th>Department</th><th>Office</th><th>Focus</th><th>Type of Financing</th><th>Size Limits</th><th>Eligibility</th></tr></thead><tbody><tr><td>Community<br>Facilities<br>Program</td><td>Agriculture<br>(USDA)</td><td>Rural<br>Development</td><td>Develop essential community facilities in rural areas</td><td>Grants, direct loans, and guaranteed loans through USDA-approved lenders. Up to 90% loan guarantee<br>Direct loans typically $1-3 million<br>Max Term 40 years</td><td>None</td><td><p>Public entities and not-for-profit corporations in rural areas and towns up to 20,000 in population. Includes health care, public safety, education, other community needs. Direct loans and grants are competitive within state regions.</p><p>Security requirements: bonds, pledge of tax receipts, assessments, revenues, or real estate mortgage</p></td></tr><tr><td>Business & Industry (B&I)<br>Guaranteed Loan Program</td><td>Agriculture<br>(USDA)</td><td>Rural<br>Development</td><td>Business<br>development and job creation<br>in rural areas</td><td>Guaranteed loans through USDA-approved lenders. Guarantee amount varies from 80% for loans under $5 million to 60% for loans exceeding $10 million.<br>Max term 30 years</td><td>$10<br>million,<br>exceptions<br>up to $25<br>million</td><td><p>Public, not-for-profit, or private entities in rural areas and towns up to 50,000 in population</p><p>Security requirements: acceptable collateral</p></td></tr><tr><td>EDA<br>Investment<br>Programs</td><td>Commerce</td><td>Economic Development Administration</td><td>Economic development and job creation</td><td>Competitive grants</td><td>Varies</td><td>Districts Organizations, units of State and local government, Indian Tribes, institutions of higher education, public or private nonprofit organizations cooperating government</td></tr><tr><td>Section 242<br>Mortgage<br>Insurance</td><td>Housing and<br>Urban<br>Development<br>(HUD)</td><td>Office of<br>Healthcare<br>Programs</td><td>Construction, rehabilitation of acute care hospitals<br> </td><td>Federal mortgage insurance on fixed-rate loan<br>from HUD approved private lender 99% loan guarantee<br>Max term 25 years</td><td>None</td><td><p>Acute care hospitals (public, not-for-profit, or private)</p><p>Security requirements: first mortgage of building and equipment</p></td></tr><tr><td>504 Loan<br>Program</td><td>Small Business<br>Administration<br>(SBA)</td><td>504 Program Branch, Office of Financial<br>Assistance</td><td>Economic<br>Development<br>and job<br>creation/<br>retention</td><td>Certified Development Company (CDC) funded<br>with SBA-guaranteed debenture provides up to<br>40% of project cost<br>A participating lender contributes up to 50% of<br>project cost<br>Max term 20 years</td><td>Up to $5<br>million</td><td><p>Business must operate for profit and fall within SBA size standards (net worth less than $15 million)<br>Finance fixed assets including land, buildings, and equipment</p><p>Security requirements: lien on project assets, personal guaranties from owners of 20% or more</p></td></tr><tr><td>New Markets<br>Tax Credit<br>(NMTC)<br>Program</td><td>Treasury</td><td>Community<br>Development<br>Financial<br>Institutions<br>Fund</td><td>Business and real estate<br>investment in low-income<br>communities</td><td>Debt or equity investments through Community Development Entities (CDE)<br>Interest rate and term set by the CDE</td><td>None</td><td><p>Must be located in a qualified Low-Income Community<br>(greater than 20% poverty or less than 80% Area Median<br>Income) or serve a Targeted Population (Low-Income)</p><p>Security requirements: determined by the CDE</p></td></tr></tbody></table></div><h3 class="page-header">Additional Information</h3><div class="flex"><div class="panel"><div class="panel-heading"><h4 class="panel-title">Federal programs:</h4></div><div class="panel-body"><ul class="list-unstyled"><li><a href="http://www.rurdev.usda.gov/HCF_CF.html">USDA Community Facilities Program</a></li><li><a href="http://www.rurdev.usda.gov/BCP_gar.html">USDA Business & Industry (B&I) Guaranteed Loan Program</a> </li><li><a href="http://www.eda.gov/programs.htm">EDA Investment Programs</a> </li><li><a href="http://www.hud.gov/healthcare">HUD Section 242 Mortgage Insurance</a></li><li><a href="http://www.sba.gov/content/cdc504-loan-program">SBA 504 Loan Program</a> </li><li><a href="http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5">CDFI New Markets Tax Credit (NMTC) Program</a></li></ul></div></div><div class="panel"><div class="panel-heading"><h4 class="panel-title">Rural health and capital access:</h4></div><div class="panel-body"><ul class="list-unstyled"><li><a href="http://www.hrsa.gov/ruralhealth/resources/access/index.html">HRSA Office of Rural Health Policy</a> </li><li><a href="http://www.ruralhealthresearch.org/topics/100000053/publications_date.php">Rural Health Research Gateway, Capital Funding</a></li><li><a href="http://www.raconline.org/topics/funding/capital.php">Rural Assistance Center, Capital Funding</a></li><li><a href="http://www.ruralcenter.org/">National Rural Health Resource Center</a> (search "capital access"):</li><li><a href="http://www.hud.gov/offices/cpd/economicdevelopment/programs/rhed/gateway/">HUD Rural and Economic Deve!opment Gateway</a></li><li><a href="http://ruralhealthworks.org/">National Center for Rural Health Works</a> (analyze health care and rural economic impact)</li><li><a href="http://www.naheffa.com/">State Health Facilities Finance Authorities</a></li></ul></div></div></div></div> Thu, 09 Nov 2017 10:59:35 -0600 Federal Capital Financing