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

USDA offers a variety of programs to increase access to homeownership in rural communities. They range from direct to consumer loans up to low interest loans to NCDFIs to allow them to make home loans direct to consumers. If your CDFI is looking for an avenue to increasing homeownership in your community USDA has a variety of options. The table below compares the three levels of USDA homeownership programs each with varying levels of requirements of the CDFI. For more information on each specific program click the learn more links at the bottom of the table below.

Single Family Housing 502 Direct Loan Program

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Single Family Housing 502 Guaranteed Loan Program

Native CDFI Relending Demonstration Program

Funding Structure

Loan

Income to NCDFI

Packaging fee up to $2,000

Loan principal, fees, interest

Maximum Term

33 years

30 years

33 years

Funding Frequency

Year-round

Interest Rate

Fixed 5.125%

Fixed

1%

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

*The financing of water and sewage facilities and the purchase of essential household equipment applies only to new construction. For the purpose of the loan, essential household equipment is defined as appliances such as refrigerators, stoves, oven hoods, etc.

Rural Energy for America Program (REAP) – Loan Guarantee

Rural Energy for America Program (REAP) – Grant

Revolving Funds for Financing Water and Wastewater Projects

Rural Decentralized Water Systems Grant Program

Water and Waste Disposal Loan Guarantees

Funding Structure

Loan guarantee

Grant

Revolving Loan

Grant

Loan guarantee

Funding Frequency

Annually

Quarterly

?

Funding Availability

Up to 75% of total eligible project costs

Up to 50% of total eligible project costs

Up to $200,000

Revolving loan of $15,000 per household

?

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

Maximum Term

40 years

?

10 years

20 years

?

Interest Rate

Fixed 1%

Determined by nonprofit

1% fixed

?

Match Requirement

?

25-50%

20%

10%

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

Short-term small capital improvement projects that are not part of the regular operations and maintenance

To construct, refurbish, or service individually owned household water well and decentralized wastewater systems

For construction projects to cover costs such as engineering fees and land, legal, and environmental analysis costs.

Equipment to operate, maintain, or protect facilities

Professional service fees for engineering and environmental services

Debt refinancing

Learn More

Learn more

Learn More

General Tips for Success with USDA Programs

1. Don’t Be Discouraged by the Process

USDA’s downloadable forms and people-centered support make the process more approachable.

2. Do Your Research

Dig into USDA’s site and materials to understand each program’s purpose and limitations.

3. Start Early

Preparing a draft early helps USDA staff provide timely feedback.

4. Be Patient—with the Process and the People

Approval takes time. Respectful communication builds trust.

5. Build Strong Relationships with USDA Staff

Local USDA RD teams are vital before, during, and after funding.

6. Connect with Peer Native CDFIs

Lean on experienced Native CDFIs for peer support and insight. Reach out to others that have been awarded and see if they are willing to share what worked for them

7. Ask Questions Freely

Don’t hesitate to seek clarity, even if you feel unsure.

8. Don’t Be Afraid to Apply—or to Dream Big

Confidence counts—apply for what your community truly needs.

9. Keep Open, Consistent Communication

Frequent contact with USDA ensures smoother navigation.

10. Make Relationship-Building a Priority

USDA RD offices want to help, strong relationships make a difference.

“[USDA] helped us continue growing the expansion of the work and of the clients we were able to serve”

Nancy Jordan / Pacific Northwest Tribal Lending

“USDA funding isn’t just capital, it’s a path to build relationships, educate our people, and create long-term infrastructure.”

Tamra Marlowe De Nova / Chehalis Tribal Loan Fund

“We will continue to use USDA RD as long as funding is available.”

Aikue Kalima / Hawaii Community Lending

“Do not sleep on USDA. That’s the advice I give to any Native CDFI.”

Alana Peterson / Spruce Root

“They would call me with opportunities… and that just came from developing that relationship.”

Jesse Cardenas / Taala Fund

“I have not experienced that level of support with most federal agencies… It always felt very productive, like we were working together.”

Alana Peterson / Spruce Root

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.