Rural Economic Development Loan and Grant | RD RBCS 25 REDLG

Opportunity Information: Apply for RD RBCS 25 REDLG

The Rural Economic Development Loan and Grant (REDLG) opportunity is a USDA Rural Business-Cooperative Service program designed to finance rural economic development projects through local utility organizations rather than funding businesses directly. The basic structure is a pass-through model: USDA works with eligible utility entities, and those utilities then provide financing to local businesses and community-based projects (often called the "ultimate recipients") that are expected to create or retain jobs in rural areas.

The program offers two main funding tools. First, USDA can provide zero-interest loans to eligible local utility organizations. The utility then re-lends those funds to rural businesses or other local eligible projects, and the ultimate recipient repays the utility according to the terms the utility sets. After that, the utility is responsible for repaying USDA, effectively serving as the intermediary lender and administrator. Second, USDA can provide grants to eligible utilities to help them establish Revolving Loan Funds (RLFs). With an RLF, the utility makes loans from the fund to support rural job creation or job retention projects, and as borrowers repay, the money revolves back into the fund to be lent again. A notable feature in the grant structure described here is that when the revolving loan fund is terminated, the grant amount must be repaid to USDA, which makes it different from many traditional grant programs that do not require repayment.

Award sizes are capped based on the assistance type. The anticipated maximum per award is up to $2,000,000 for loans and up to $300,000 for grants. USDA expects to make about 40 awards under this opportunity, indicating a moderate level of selectivity depending on demand, geographic distribution, and project quality.

Eligibility is focused on utility organizations with ties to USDA Rural Utilities Service or Rural Development infrastructure programs. Entities that can apply include former Rural Utilities Service borrowers that have borrowed, repaid, or prepaid an insured, direct, or guaranteed loan; nonprofit utilities that are eligible for assistance through Rural Development Electric or Telecommunication Programs; and current borrowers in the Rural Development Electric or Telecommunication Programs. In practice, this means the applicant is typically a utility or utility-like nonprofit entity, and the businesses that ultimately benefit are downstream recipients financed by the utility rather than direct federal grantees or borrowers.

From a categorization standpoint, the opportunity is listed as discretionary and falls under broad activity areas including agriculture, business and commerce, community development, education, health, and regional development. The CFDA (now often referenced under Assistance Listings) number associated with the program is 10.854. The funding opportunity number is RD RBCS 25 REDLG, and the stated closing date is June 30, 2025.

• 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 2024-08-26.
• Applicants must submit their applications by 2025-06-30. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• The number of recipients for this funding is limited to 40 candidate(s).
• Eligible applicants include: Others.

Apply for RD RBCS 25 REDLG

[Watch] Creating a grant proposal using the step-by-step wizard inside the applicant portal: