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
Description (click or tap the icon)
Funding Structure	Grant	Loan	Both	Loan
Maximum Term		30 years	20 years	?
Funding Frequency	Annually	Quarterly	Quarterly	Year-round
Interest Rate		Fixed 1%	Fixed	Indirect cost rates
Match Requirement		?	15%	?

Eligible Projects

	Rural Business Development Grant (RBDG)	Intermediary Relending Program (IRP)	Rural Microentrepreneurial Assistance Program (RMAP)	Business and Industry (B&I) Loan Guarantee Program
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	Learn More	Learn More	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	Single Family Housing 502 Guaranteed Loan Program	Native CDFI Relending Demonstration Program
Description (click or tap the icon)
Funding Structure	Loan	Loan	Loan
Income to NCDFI	Packaging fee up to $2,000	Loan principal, fees, interest	Loan principal, fees, interest
Maximum Term	33 years	30 years	33 years
Funding Frequency	Year-round	Year-round	Year-round
Interest Rate	Fixed 5.125%	Fixed	1%
Match Requirement			?

Eligible Applicants

	Single Family Housing 502 Direct Loan Program	Single Family Housing 502 Guaranteed Loan Program	Native CDFI Relending Demonstration Program
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	Learn More	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
Description (click or tap the icon)
Funding Structure	Loan guarantee	Grant
Funding Frequency	Annually	Annually
Funding Availability	Up to 75% of total eligible project costs*	Up to 50% of total eligible project costs*
Maximum Term	40 years	?
Interest Rate	Fixed 1%
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.

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

Eligible Projects

	Rural Energy for America Program (REAP) – Loan Guarantee	Rural Energy for America Program (REAP) – Grant
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

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