How to Apply for USDA Community Facilities Grants

September 12, 2025 · 6 min read

TJ Jackson

I remember the first time I heard about the USDA Community Facilities program. I was sitting in our one-room office in Selma, Alabama -- which was really just a folding table in the back of a church -- trying to figure out how to get funding for a community kitchen. Someone at a regional conference mentioned that USDA Rural Development had grants for exactly this kind of thing. I almost didn't believe it.

Fast forward a few years, and our foundation has now delivered multiple USDA-funded projects, including water infrastructure improvements that serve hundreds of families in the Alabama Black Belt. But that first application? It was terrifying. Nobody in our organization had ever applied for a federal grant before.

This guide is for the version of me that existed back then -- the small nonprofit leader who knows the community needs are real but has no idea where to start with federal funding.

What Is the USDA Community Facilities Grant Program?

The USDA Community Facilities Direct Loan and Grant Program provides funding to build, renovate, or expand essential community facilities in rural areas. We are talking about things like health clinics, food pantries, fire stations, childcare centers, community centers, and public safety buildings.

The program is administered by USDA Rural Development and is open to public bodies, nonprofit organizations, and federally recognized tribal governments. Your community must have a population of 20,000 or less to qualify.

Grants can cover between 15% and 75% of total project costs, depending on your community's population and median household income. Smaller and lower-income communities can receive a larger grant share, which is good news for many of the rural towns I work with.

Who Is Eligible to Apply?

You can apply if you are a:

Public entity (municipality, county, special-purpose district)
Nonprofit corporation with 501(c)(3) status
Federally recognized tribal government

Your project must serve a rural area with a population under 20,000, and you need to demonstrate that the facility is essential to the community and that you cannot obtain commercial credit on reasonable terms.

Step-by-Step: How to Apply

Here is the process I wish someone had laid out for me before our first application.

Step 1: Get Your Federal Registrations in Order

Before you can apply for any federal grant, you need a Unique Entity ID (UEI) and an active registration on SAM.gov. This is non-negotiable. Go to SAM.gov, create a Login.gov account if you do not have one, and start the entity registration process. It is free, but it can take up to four weeks to process, so do not wait until the last minute.

You will also need to register on Grants.gov, which is where most federal grant applications are submitted. Make sure you designate an Authorized Organization Representative who can submit applications on behalf of your organization.

Step 2: Contact Your State USDA Rural Development Office

This is the single most important step that most guides skip. Unlike many federal programs where you just submit online and hope for the best, USDA Rural Development is a relationship-driven process. Every state has a Rural Development office with staff who will walk you through the application. Call them. Introduce yourself and your organization. Describe your project.

They will assign you to an Area Loan Specialist who becomes your primary point of contact. This person can tell you whether your project is a good fit before you spend months on an application.

Step 3: Prepare a Preliminary Feasibility Report

USDA will ask for a Preliminary Architectural Feasibility Report and a cost estimate early in the process. This does not need to be a full set of architectural drawings, but you do need enough detail for the RD Area Specialist and State Architect to assess whether your project is viable.

If you do not have an architect on staff (and most small nonprofits do not), look into the Community Facilities Technical Assistance and Training Grant program. USDA funds nonprofit intermediaries to provide free or low-cost technical assistance to organizations like yours.

Step 4: Build Your Application Package

Your application will typically include:

SF-424 (standard federal application form)
Project narrative describing the need, the proposed facility, and the community impact
Budget and cost estimates with supporting documentation
Evidence of legal authority (articles of incorporation, bylaws, board resolution)
Environmental review documentation
Financial statements for your organization
Evidence that commercial credit is not available at reasonable terms

Step 5: Submit and Stay Responsive

Once your application is submitted, stay in close contact with your RD Area Specialist. They may have follow-up questions or request additional documentation. Responsiveness matters -- it signals that your organization is capable of managing federal funds.

Tips I Learned the Hard Way

Start your SAM.gov registration immediately. I have seen organizations miss deadlines because they waited too long to register. The process can take weeks, and your registration must be active at the time of submission.

The de minimis indirect cost rate is your friend. If your nonprofit does not have a federally negotiated indirect cost rate, you can claim up to 15% of modified total direct costs as indirect costs under the 2024 Uniform Guidance updates. That covers things like rent, utilities, and administrative support that keep your organization running.

Do not try to do everything alone. USDA funds technical assistance providers whose entire job is to help small organizations navigate this process. The Rural Community Development Initiative (RCDI) also funds intermediary organizations that support capacity-building for groups like yours. Use these resources.

Talk to organizations that have done it before. When I was preparing our first application, I called three other small nonprofits in Alabama that had received USDA funding. Every single one of them shared tips that saved me time and prevented mistakes. This community is generous with knowledge.

What Kinds of Projects Get Funded?

USDA has funded an enormous range of community facilities, including:

Fire and rescue stations
Health clinics and rehab centers
Childcare and adult care centers
Community centers and town halls
Food banks and community kitchens
Libraries and schools
Assisted living facilities
Public safety equipment

In FY2024, USDA Rural Utilities Service obligated $1.6 billion in loans and grants for over 700 water and waste disposal projects alone. The money is real, and it is reaching rural communities.

The Biggest Barrier Is Believing You Can Do It

I will be honest with you. The hardest part of our first federal grant was not the paperwork. It was convincing ourselves that a small nonprofit running on an $800K budget could successfully manage federal funds. But USDA Rural Development is specifically designed for organizations and communities like ours. The staff at our state office were patient, thorough, and genuinely invested in our success.

If you are a community leader sitting at your own version of a church folding table, wondering whether federal funding is within reach -- it is. You just need to start.

If you are applying for your first federal grant, tools like Granted can help walk you through the process -- from understanding the RFP to putting together a complete proposal.

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