USDA Rural Development
Community Facilities Direct Loan & Grant Program
Low-interest federal loans, plus some grant money for the smallest lower-income towns, to buy, build or improve a community facility in a rural town of 20,000 or fewer. USDA lists private schools among eligible facilities; the borrower must be a nonprofit or public body.
- Amount
- Low-interest direct loans (terms up to 40 years); grants of 15% to 75% of the cost only for the smallest, lower-income towns
- Can a for-profit school apply?
- No: for-profit schools excluded
- Deadline
- Rolling
- Who this fits
- Private school · MicroschoolNonprofit corporations building, buying or fixing up a facility in a rural town of 20,000 people or fewer. USDA names private schools as an eligible kind of facility.
- New schools
- Not stated for new schools
- Where
- National: schools in any US state
- Last checked
- Oct 2, 2026on rd.usda.gov
How to apply
- Step 1: Check that your town has 20,000 people or fewer
- Step 2: Call the Arkansas Rural Development state office (pick Arkansas on USDA's program page) before you fill out any forms
- Step 3: Get a Unique Entity ID and register in SAM.gov
- Step 4: Gather proof of community support and that you can't get reasonable commercial credit
Funders change their requirements. Check the official page before you apply. Getting ready? See what funders usually ask for.
Who can apply
“An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.”
Eligible borrowers are public bodies, community-based nonprofit corporations and federally recognized tribes. USDA's examples of essential facilities include “Educational services such as museums, libraries or private schools.” The grant rules ask that a facility under private control “will carry out a public purpose,” so a building the community also uses makes a stronger case. A church school should ask the Arkansas office early, and your CPA, which entity would borrow.
- Nonprofit corporation with strong local ties (or a public body)
- Facility in a rural town of 20,000 people or fewer
- Can't get the money from your own resources or commercial credit at reasonable terms
- Substantial community support
- A Unique Entity ID and SAM.gov registration
Timing
Applications are taken year-round. Talk with your state's Rural Development office first; USDA says preparing an application can take a few weeks to several months.