Rural Economic Development Loan and Grant | RD RBCS 23 REDLG

Opportunity Information: Apply for RD RBCS 23 REDLG

The Rural Economic Development Loan and Grant (REDLG) program is a USDA Rural Development initiative run through the Rural Business-Cooperative Service that is designed to finance economic development projects in rural communities by working through local utility organizations. Instead of USDA lending directly to individual businesses, the program uses an intermediary model: USDA provides funding to eligible local utilities, and those utilities then re-lend the money to local businesses or other eligible end users (called "ultimate recipients") for projects that are expected to create or retain jobs in rural areas. This structure is meant to leverage trusted local institutions that already serve rural areas, keep decision-making close to the community, and recycle repayments back into local economic development activity.

The opportunity has two main funding paths, each tied to the role of the local utility organization as the applicant. First, USDA can provide zero-interest loans to local utilities. The utility then passes those funds through as loans to ultimate recipients for qualifying rural projects. The ultimate recipient repays the utility directly, and the utility is responsible for repaying USDA under the terms of the USDA loan. Second, USDA can provide grants to local utility organizations to establish Revolving Loan Funds (RLFs). Under this model, the utility uses the grant dollars to create a loan pool and then makes loans from that revolving fund to projects that will create or retain rural jobs. As loans are repaid, the money returns to the revolving fund and can be re-lent, extending the impact of the original grant over time. A notable condition of this grant structure is that if the revolving loan fund is terminated, the grant must be repaid to USDA, which reinforces the expectation that the RLF remains active and dedicated to ongoing rural lending.

The agency indicated anticipated maximum award sizes of up to $2,000,000 per loan award and up to $300,000 per grant award. The overall award ceiling listed for the opportunity is $2,000,000, reflecting the upper end of the loan component. USDA projected roughly 40 awards under this notice, signaling a competitive program with multiple awards expected rather than a single large grant.

Administratively, this funding opportunity is listed as discretionary and uses an "Other" funding instrument type, reflecting the fact that the program operates through a blend of pass-through lending and revolving loan fund mechanics rather than a straightforward direct-to-beneficiary grant format. The program is tied to CFDA (now commonly referenced as Assistance Listing) number 10.854 and is categorized across several activity areas including agriculture, business and commerce, community development, education, health, and regional development, which reflects the broad range of rural projects that can be financed so long as job creation or retention in rural areas is a central outcome.

Eligibility is aimed at local utility organizations as the direct applicants, with ultimate recipients receiving the benefit through loans made by those utilities. The listing flags eligibility as "Others" and points readers to additional eligibility details in the full announcement, but the core concept remains that utilities act as intermediaries and businesses or other local entities become the end users of the capital for rural job-related projects.

Timing for this particular notice was structured around quarterly competitions, with complete applications due to the USDA Rural Development State Office by 4:30 p.m. local time at the end of each quarter: September 30, 2022; December 31, 2022; March 31, 2023; and June 30, 2023. The opportunity was created on August 31, 2022, and the original closing date was June 30, 2023, aligning with the fourth-quarter deadline. Overall, REDLG is essentially a rural job-focused financing program that relies on local utilities to deploy USDA-supported capital into rural projects through zero-interest pass-through loans and revolving loan funds that can sustain lending over multiple cycles.

• The Department of Agriculture, 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 Aug 31, 2022.
• Applicants must submit their applications by Jun 30, 2023 The deadlines for complete applications to be received in the USDA Rural Development State Office for quarterly funding competitions are no later than 430 p.m. (local time) on First Quarter, September 30, 2022 Second Quarter, December 31, 2022 Third Quarter, March 31, 2023 and Fourth Quarter, June 30, 2023.. (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 (see text field entitled Additional Information on Eligibility for clarification).

Apply for RD RBCS 23 REDLG

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