Community Facilities Loan Program
Community Facilities Loan Program
PURPOSE OF THE PROGRAM
The purpose of the Community Facilities Loan Program is to improve, develop, or finance
essential community facilities for nonprofit organizations in rural Hawaii.
To accomplish this purpose, the program provides direct loans and loans that are guaranteed by the USDA / Rural Development Agency at a reasonable cost and seeks to coordinate and leverage its resources with those of other government agencies and private sources.
ELIGIBLE ACTIVITIES
- Program funds may be used to construct, enlarge, extend, or otherwise improve other essential community facilities providing essential service primarily to rural residents and rural businesses.
- Essential community facilities include, but are not limited to fire, rescue, public safety, health services, and community, social, or cultural services.
- Transportation facilities, telecommunication equipment, and recreational facilities. Also, the purchase of major equipment such as telecommunication equipment and X-ray machines, which will in themselves provide an essential service to rural residents.
- Funds may also be used to pay certain expenses, but only when such expenses are a necessary part of a loan to finance facilities authorized as an eligible loan purpose.
ELIGIBLE APPLICANTS
Requirements are that an applicant:
- Shall be a public body such as a municipality, county, or other political subdivision of the State of Hawaii located in a rural area; or
- An organization operated on a not-for-profit basis such as an association, cooperative, or private corporation.
- The primary place of business must be located in a rural area, meaning a city, town, or unincorporated area that has a population of 20,000 residents or less.
Applicants will be screened by the RDLF Loan Committee to determine that there is:
- A reasonable assurance of loan repayment;
- A lack of available credit from private, commercial, or cooperative sources at reasonable rates and terms for loans for similar purposes and period of time.
- A sufficient amount of collateral to secure the loan;
- Credit quality and financial feasibility analysis for determining the economic feasibility of the proposed loan.
TERMS AND CONDITIONS OF LENDING
Current loan limits are:
- $50,000.00 - minimum
- $200,000.00 - maximum
- Interest rate and lender fees will not exceed those charged other borrowers for similar types of transactions. Term length will be limited to the useful life of the facility, not to exceed 40 years.
Every effort is made to meet the needs of the borrower; therefore specific loan terms are flexible.
For more information contact Robyn Delima at 808-242-5761 extension 21.
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