USDA Rural Development Loans

2008-11-27 11:33:18

( Financial )



What is Rural Development?

It is the process of converting raw land and resources in rural areas into useful products or services. You can cultivate raw land and set up farming areas to produce crops and raise livestock. Or you can set up local establishments in the area for the benefit of the local community.

Rural development is a rather expensive and tedious process. Many rural areas of the country may still lack certain facilities such as water, electricity, telecommunications facilities, and good modes of transportation. These infrastructure projects do cost a lot of money and need technical expertise to complete.

Nature and Goals of the US Department of Agriculture

The US Department of Agriculture or USDA aims to enhance economic progress in rural areas by helping rural residents in undertaking projects to convert their raw properties into usable and productive ones.

With various projects involved in agriculture and other rural development projects, the USDA hopes to improve the quality of life of rural residents as well as supply a growing consumer market with the right products for individual or business consumption.

How the USDA Helps

The USDA is a rich source of funds, as it provides business and rural development loans to individuals and companies who wish to undertake
projects in rural areas. It currently has almost ninety billion dollars worth of funds to lend to interested and qualified parties.

There are many types of rural and business development loans available for purposes such as construction or repair of residential farm homes and communities, or for setting up or improving electrical, water, and telecommunications facilities in specific areas.

Housing and Community Development

Many low-income people reside in the rural areas, and often do not enough funds to construct decent homes for themselves. Property development loans will enable these people to build, repair or relocate their homes.

Rural areas also need proper roads and public facilities that will benefit a community, such as a local center for trade and commerce. The USDA grants rural development loans to the local governments or civic organizations of such areas.

Financial Assistance to Businesses and Cooperatives

Businesses and cooperatives can get financial help through the USDA's rural and business development loans. It funds projects that are aimed at boosting local commerce and employment, and are environmentally friendly as well.

Infrastructure Projects

The USDA also grants rural development loans to finance infrastructure programs such as roads, water supply, electrical supply, telecommunications facilities, and many others.

Qualifying for Rural Development Loans

You can qualify for a USDA rural development loan to finance your home or farm construction if you can show that your property really needs proper housing, and if you have enough funds each month to pay the very reasonable finance charges for rural development loans.

Businesses, cooperatives and other organizations can apply by first preparing a feasibility study or business plan and submit this to the USDA for approval.


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