Rural Economic Development Loan and Grant Program

The REDLG program provides funding to rural projects through local utility organizations. Under the REDLoan program, USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. Under the REDGrant program, USDA provides grant funds to local utility organizations which use the funding to establish revolving loan funds for projects that will create or retain rural jobs.

Eligible Recipients:
To receive funding under the REDLG program an entity must:

  • Have borrowed and repaid or prepaid an insured, direct, or guaranteed loan received under the Rural Electrification Act; or
  • Be a not-for-profit utility that is eligible to receive assistance from the Rural Development Electric or Telecommunication Program; or
  • Be a current Rural Development Electric or Telecommunication Programs Borrower.

Eligible Projects:
REDLG grantees and borrowers pass the funding on to eligible projects. Examples of eligible projects include:

  • Capitalization of revolving loan funds,
  • Technical assistance in conjunction with projects funded under a zero interest REDLoan,
  • Business Incubators,
  • Community Development Assistance to non-profits and public bodies, and
  • Facilities and equipment for education and training for rural residents to facilitate economic development.

Funding Source:
USDA Rural Development

Funding Amount:
Up to $740,000 for loans
Up to $300,000 for grants


USDA Rural Development State Office
441 South Salina St.
Suite 357
Syracuse, NY 13202
Fax: 315-477-6438

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