Grants & Loans

Rural Economic Development Loan and Grant Program is a grant from the U.S. Department of Agriculture (USDA) that funds rural job creation and economic development projects through local utility organizations. USDA provides zero-interest loans up to $1 million to Rural Utilities Service (RUS) electric and telecommunications borrowers, which they pass through to local businesses and community projects. Grants up to $300,000 are available to establish Revolving Loan Funds for ongoing rural lending. Eligible uses include community development assistance, facilities and equipment for education and medical care, and start-up venture costs. A 20% match is required for grants. Eligible applicants are current or former RUS electric or telecommunication borrowers and not-for-profit utilities eligible under the Rural Electrification Act.

Notice of Funding Opportunity for the Rural Economic Development Loan and Grant Programs for Fiscal Year 2026 is sponsored by Agriculture Department; Rural Business-Cooperative Service. The Rural Business-Cooperative Service (RBCS or Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), invites applications for loans and grants under the Rural Economic Development Loan and Grant Programs (REDLG or Programs) for fiscal year (FY) 2026, subject to the availability of funding. This notice is being issued prior to the passage of a FY 2026 Appropriations Act, which may or may not provide funding for this program, to allow applicants sufficient time to leverage financing, prepare and submit their applications, and give the Agency time to process applications within FY 2026. Based on FY 2025 appropriated funding and current budget situation, the Agency estimates that approximately $50,000,000 for Loans and $10,000,000 for Grants will be available for FY 2026. Successful applications will be selected by the Agency for funding and subsequently awarded to the extent that funding may ultimately be made available through appropriations. All applicants are responsible for any expenses incurred in developing their applications. Action: Notice. Published in the Federal Register on 2025-09-15. Federal Register document number: 2025-17770.