Opportunity Information: Apply for RD RBCS 24 REDLG
The Rural Economic Development Loan and Grant (REDLG) program is a USDA initiative designed to push capital into rural communities by working through local utility organizations rather than lending directly to individual businesses. The core idea is that rural utilities already have deep relationships with their service territories and can identify projects that will realistically create or keep jobs. Under this program, USDA supports those utilities with either zero-interest loan funding or grant funding, and the utility then re-lends that money to local project owners (often businesses or other eligible local entities) for qualifying rural economic development projects focused on employment impacts.
The program has two main funding paths. First, USDA can provide a zero-interest loan to an eligible local utility. That utility then makes a pass-through loan to an "ultimate recipient" (the local business or project sponsor carrying out the project). The ultimate recipient repays the utility under the terms the utility sets, and the utility is responsible for repaying USDA. This structure keeps the borrower relationship local while still leveraging federal capital, and it is explicitly aimed at projects that will create or retain jobs in rural areas. Second, USDA can provide a grant to an eligible utility to establish a Revolving Loan Fund (RLF). The utility uses the grant dollars as the seed money for a local lending pool, makes loans to eligible projects from that pool, and as those loans are repaid the funds revolve and can be lent again to additional projects. A notable feature of this grant-based RLF structure is that when the revolving loan fund is terminated, the grant amount is repaid to USDA, reinforcing that the grant is intended to capitalize ongoing lending rather than function as a one-time giveaway.
In terms of typical size, USDA anticipates maximum award amounts of up to 2,000,000 dollars for loans and up to 300,000 dollars for grants. The opportunity lists an overall loan award ceiling of 2,000,000 dollars and an expectation of roughly 40 awards. The funding opportunity is categorized as discretionary and is administered by USDA's Rural Business-Cooperative Service. The program aligns with several public-purpose activity areas, including agriculture, business and commerce, community development, education, health, and regional development, reflecting the range of rural projects that can be tied to job creation and retention.
Eligibility is oriented around the utility intermediary, not the end business directly applying to USDA. To be the entity receiving USDA funding and then forwarding it on to selected projects, an applicant must be a qualifying utility organization. Eligible applicants include former Rural Utilities Service borrowers that previously borrowed and have repaid or prepaid an insured, direct, or guaranteed loan, as well as nonprofit utilities that are eligible for assistance from Rural Development Electric or Telecommunication Programs, and current Rural Development Electric or Telecommunication Programs borrowers. In practice, this means the front-door applicants are typically electric cooperatives, telecommunications cooperatives, or similar nonprofit utility organizations with a history of participation in USDA rural utility financing.
From an implementation standpoint, the utility acts as the lender and gatekeeper: it identifies eligible local projects, underwrites and services the loans to the ultimate recipients, and ensures repayment flows back appropriately (either to USDA in the case of the zero-interest loan pathway or back into the revolving fund in the RLF pathway). The emphasis throughout is on measurable rural employment outcomes, meaning the projects supported are expected to demonstrate that they will create new jobs, prevent job losses, or otherwise sustain employment in rural communities.
Key administrative details from the posting include the funding opportunity title "Rural Economic Development Loan and Grant," funding opportunity number RD RBCS 24 REDLG, Assistance Listing (CFDA) number 10.854, and an original closing date of 2024-06-30.Apply for RD RBCS 24 REDLG
- The Rural Business-Cooperative Service in the agriculture, business and commerce, community development, education, health, regional development sector is offering a public funding opportunity titled "Rural Economic Development Loan and Grant" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.854.
- This funding opportunity was created on 2023-12-18.
- Applicants must submit their applications by 2024-06-30. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $2,000,000.00 in funding.
- The number of recipients for this funding is limited to 40 candidate(s).
- Eligible applicants include: Others.
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Frequently Asked Questions (FAQs): USDA Rural Economic Development Loan and Grant (REDLG)
1) What is the REDLG program?
The Rural Economic Development Loan and Grant (REDLG) program is a USDA initiative that pushes capital into rural communities by working through local utility organizations. Instead of USDA lending directly to individual businesses, USDA provides funds to an eligible utility, and the utility then re-lends that money to local project owners for qualifying rural economic development projects tied to job creation or job retention.
2) Who administers the REDLG program?
The program is administered by USDA's Rural Business-Cooperative Service.
3) Is this a loan program, a grant program, or both?
Both. The opportunity has two main funding paths: (1) a zero-interest loan made by USDA to an eligible utility, and (2) a grant made by USDA to an eligible utility to establish a Revolving Loan Fund (RLF).
4) Who applies to USDA under REDLG?
The utility intermediary applies to USDA, not the end business. Eligibility is structured so that a qualifying utility organization is the applicant and recipient of USDA funds, and that utility then makes loans to the local "ultimate recipients" that carry out the projects.
5) Who are the "ultimate recipients" in this program?
Ultimate recipients are the local project owners or sponsors (often businesses or other eligible local entities) that receive a loan from the participating utility and use it to carry out a qualifying rural economic development project.
6) What is the core purpose of REDLG?
The core purpose is to support qualifying rural economic development projects that create jobs, retain jobs, or otherwise sustain employment in rural communities. The program is designed around measurable rural employment impacts.
7) How does the zero-interest loan pathway work?
USDA provides a zero-interest loan to an eligible local utility. The utility then makes a pass-through loan to the ultimate recipient. The ultimate recipient repays the utility under terms the utility sets, and the utility is responsible for repaying USDA.
8) How does the grant (Revolving Loan Fund) pathway work?
USDA provides a grant to an eligible utility to capitalize a Revolving Loan Fund (RLF). The utility uses the grant as seed money to make loans to eligible projects. As loans are repaid, funds revolve and can be lent out again to additional projects over time.
9) If it is called a grant, does the money ever have to be repaid?
Under the grant-based RLF structure, when the revolving loan fund is terminated, the grant amount is repaid to USDA. This feature reinforces that the grant is meant to capitalize ongoing lending rather than function as a one-time giveaway.
10) What types of organizations are eligible to apply as the utility intermediary?
Eligible applicants include: (a) former Rural Utilities Service borrowers that previously borrowed and have repaid or prepaid an insured, direct, or guaranteed loan; (b) nonprofit utilities eligible for assistance from Rural Development Electric or Telecommunication Programs; and (c) current Rural Development Electric or Telecommunication Programs borrowers.
11) What kinds of utility organizations typically participate?
In practice, the "front-door" applicants are often electric cooperatives, telecommunications cooperatives, or similar nonprofit utility organizations with a history of participating in USDA rural utility financing.
12) Does USDA lend directly to rural businesses through this opportunity?
No. USDA funds eligible utilities, and those utilities then re-lend to local project owners (ultimate recipients). The borrower relationship is kept local through the utility.
13) What role does the utility play after receiving USDA funds?
The utility serves as the lender and gatekeeper. It identifies eligible local projects, underwrites and services loans to ultimate recipients, and manages repayment flows (either repayment to USDA under the zero-interest loan pathway or repayment back into the revolving loan fund for the RLF pathway).
14) What is the maximum anticipated award amount for REDLG loans?
USDA anticipates maximum award amounts of up to 2,000,000 dollars for loans, and the opportunity lists an overall loan award ceiling of 2,000,000 dollars.
15) What is the maximum anticipated award amount for REDLG grants?
USDA anticipates maximum award amounts of up to 300,000 dollars for grants.
16) About how many awards does USDA expect to make?
The posting indicates an expectation of roughly 40 awards.
17) What types of project areas can this program support?
The program aligns with several public-purpose activity areas, including agriculture, business and commerce, community development, education, health, and regional development, as long as the supported projects are tied to rural job creation or job retention outcomes.
18) What does "discretionary" mean in the context of this funding opportunity?
The opportunity is categorized as discretionary, meaning awards are made through an application and selection process rather than being automatically awarded to all eligible parties.
19) What is the official funding opportunity title?
The official title is "Rural Economic Development Loan and Grant."
20) What is the funding opportunity number?
The funding opportunity number is RD RBCS 24 REDLG.
21) What is the Assistance Listing (CFDA) number for this program?
The Assistance Listing (CFDA) number is 10.854.
22) What was the original closing date listed for this opportunity?
The original closing date listed was 2024-06-30.
23) What is the main benefit of using utilities as intermediaries?
The program is built on the idea that rural utilities have deep relationships in their service territories and can identify projects that will realistically create or keep jobs. This structure also keeps the borrower relationship local while leveraging federal capital.
24) What is the difference between repayment flows under the loan pathway versus the RLF pathway?
Under the zero-interest loan pathway, the ultimate recipient repays the utility, and the utility repays USDA. Under the RLF pathway, loan repayments return to the revolving loan fund so the utility can lend to additional projects; and when the RLF is terminated, the original grant amount is repaid to USDA.
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| Rural Economic Development Loan and Grant Apply for RD RBCS 25 REDLG Funding Number: RD RBCS 25 REDLG Agency: Rural Business-Cooperative Service Category: Agriculture, Business and Commerce, Community Development, Education, Health, Regional Development Funding Amount: Case Dependent |
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