Administrative Agency:

Federal Agency: U.S. Department of Agriculture, Rural Development

Program Goals:

Loans are available for public entities, such as municipalities, boroughs, and special purpose districts in rural areas or cities with fewer than 20,000 people. Indian tribes and community based non-profit corporations may also receive loans. Priority will be given to public entities in areas smaller than 5,500 people.

Resource Provided:

Loans and grants may be used to construct, repair, improve, or expand community facilities for health care, public safety, and public services. These may include hospitals, dental and medical clinics, fire trucks, ambulances, fire and rescue multi-service centers, police stations, jails, streets, or libraries. Other community facilities, including alternative energy generation for community buildings, may also be eligible.

Eligibility:

Applicants must be unable to obtain needed funds from other sources at reasonable rates and terms, have legal capacity to borrow and repay loans, be financially sound, and be able to manage the facility effectively.

Alaska Program Status:

Alaska's annual allotment in FY 09 was $1,534,490 for guaranteed loans, $2,156,000 for direct loans, $3,504,000 ARRA direct loans, and $200,380 in grants. Additional funds can be obtained from a national reserve. Special Economic Impact Initiative Grant funding varies.

Comments:

Loans have a maximum term of 40 years or the useful life of the facility, whichever is less. Interest rates are set periodically and are based on current market yields for municipal obligations. The current range of interest rates on direct loans is 4.125% to 4.50%. All loans will be adequately secured.

Program Contact:  (Primary Contact listed first.)

Merlaine Kruse, Director
Community Programs
Rural Development
U.S. Department of Agriculture
800 W. Evergreen, Suite 201
Palmer, AK 99645
Phone: (907) 761-7778
Fax: (907) 761-7793
e-mail: merlaine.kruse@ak.usda.gov
Web site: http://www.rurdev.usda.gov
Alaska Web Site: http://www.rurdev.usda.gov/ak/

Misty Hull, Specialist
Community Programs
Rural Development
U.S. Department of Agriculture
800 W. Evergreen, Suite 201
Palmer, AK 99645
Phone: (907) 761-7733
Fax: (907) 761-7793
e-mail: misty.hull@ak.usda.gov

Tasha Deardorff, Specialist
Community Programs
Rural Development
U.S. Department of Agriculture
800 W. Evergreen, Suite 201
Palmer, AK 99645
Phone: (907) 761-7726
Fax: (907) 761-7793
e-mail: tasha.deardorff@ak.usda.gov