Unlocking Opportunities: USDA Rural Development Programs for Native CDFIs

As part of a two-year cooperative agreement with the United States Department of Agriculture – Rural Development (USDA RD) Office of Tribal Relations (OTR), the Native CDFI Network (NCN) produced an electronic resource toolkit (NCN e-toolkit) to promote awareness of and increase access to Rural Development programs that support economic development in Indian Country.

Advisory Group members gathered throughout the planning period to take a deeper look at ways to create more awareness of USDA RD programs among Native CDFIs, Native-led non-profits, and tribal programs and design strategies to address challenges related to access and implementation of these programs. The group outlined strategies to increase awareness of the wide range of USDA RD programs, reduce complexity related to application and reporting processes, and build stronger relationships between Native CDFIs, tribal programs, and USDA RD program leadership.

Stepping Stones to Success

A Pathway from Emerging to Advanced

This graphic provides an overview of some USDA Rural Development (RD) grant programs accessible to Native CDFIs. The programs are organized in a pathway format, progressing from those most suitable for new/emerging CDFIs to those best suited for more experienced CDFIs.

Which program is right for my CDFI?

Funding Categories

Rural Business Development Grant (RBDG)

Intermediary Relending Program (IRP)

Rural Microentrepreneurial Assistance Program (RMAP)

Business and Industry (B&I) Loan Guarantee Program

Funding Structure

Grant

Loan

Both

Loan

Maximum Term

30 years

20 years

Funding Frequency

Annually

Quarterly

Year-round

Interest Rate

Fixed 1%

Fixed

Indirect cost rates

Match Requirement

15%

Eligible Projects

Working capital

Debt refinancing

Improving real estate

Establish new business

Establish and support microlending programs.

To purchase or develop land

To purchase equipment

For pollution control and abatement

For transportation services

Professional fees, ie, architects, lawyers, engineers, accountants.

Towards the building of hotels, motels, convention centers

For educational institutions

For aquaculture-based rural small business

To establish revolving lines of credit

Technical assistance and training

Feasibility studies and business plans

Rural business incubators

Learn More

Single Family Housing 502 Direct Loan Program

Single Family Housing 502 Guaranteed Loan Program

Native CDFI Relending Demonstration Program

Funding Structure

Loan

Loan vs. grant

Maximum Term

33 years

30 years

33 years

Year-round

Funding Frequency

Year-round

Interest Rate

Fixed 4.875%

Fixed

Year-round

Match Requirement

Eligible Applicants

At or below low-income level

Low or moderate-income

Without safe and sanitary housing

Primary residence occupancy

Have the legal capacity to incur a loan obligation

Meet citizenship or eligible noncitizen requirements

To purchase a home

To build a home

To repair a home

To renovate a home

To relocated a home

To purchase and prepare sites

Water and sewage facilities

To purchase essential household equipment

Learn More

Rural Energy for America Program (REAP) – Loan Guarantee

Rural Energy for America Program (REAP) – Grant

Funding Structure

Loan guarantee

Grant

Loan vs. grant

Funding Frequency

Annually

Year-round

Funding Availability

Up to 75% of total eligible project costs

Up to 50% of total eligible project costs

Year-round

Combined grant and loan guarantee funding up to 75% of total eligible project costs.

Year-round

Maximum Term

40 years

Year-round

Interest Rate

Fixed 1%

Guarantee fee of 3%

Year-round

Match Requirement

25-50%

Applicable Fees

Initial guarantee fee of 1% of the guaranteed amount.
Annual guarantee retention fee of 0.25% of the outstanding principal balance.

Eligible Projects

Biomas

Geothermal for electric generation or direct use

Hydropower below 30 megawatts

Hydroden

Small and large wind generation

Small and large solar generation

Ocean (tidal, current, thermal) generation

HVAC systems

Insulation

Lighting

Cooling or refrigeration units

Doors and windows

Electric, solar or gravity pumps for sprinkler pivots

Switching from a diesel to electric irrigation motor

Replacement of energy-inefficient equipment

To install energy efficient equipment and systems for agricultural production or processing

Learn More

Learn more

Learn More

USDA Programs in Action

NCN’s Difference Makers series showcases inspiring stories of Native CDFI leaders and entrepreneurs driving economic growth in their communities. From expanding access to capital to strengthening rural development, these success stories highlight the impact of Native-led financial solutions.

Native CDFI Leader

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Mark Jance / Facebook

USDA Rural Development State Director

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Mark Jance / Facebook

Your Voice Matters: Share Your Experience with USDA Programs

Native CDFIs play a vital role in strengthening rural economies and empowering Native communities. Your insights, success stories, and feedback on USDA Rural Development programs help shape future opportunities and improve program accessibility. Whether you’ve navigated the application process, utilized funding for impactful projects, or encountered challenges along the way, we want to hear from you! Share your experiences to help inform advocacy efforts, enhance program effectiveness, and inspire fellow Native CDFIs on their journey to success.

Share your feedback

CONNECT WITH USDA RURAL DEVELOPMENT

Native CDFIs are encouraged to connect directly with their state USDA Rural Development offices to explore available programs and build valuable relationships. Based on feedback from fellow NCDFI leaders, those who established early communication with their state USDA representatives reported a smoother, more positive experience during the application process. These local offices can offer tailored guidance, answer program-specific questions, and even advocate for your CDFI’s needs. Don’t hesitate to reach out—these partnerships can be a key stepping stone to unlocking greater impact in your community.