The NALCAB Rural Revolving Loan Fund (RLF) provides short-term, no fee, zero interest financing for projects that increase affordable housing production and economic development opportunities in rural areas. The RLF was started in 2015 with funds provided by the U.S. Department of Housing and Urban Development (HUD) through Rural Capacity Building for Community Development and Affordable Housing Grants. Through these funds, NALCAB delivers project-based and organizational technical assistance, capacity building services, and loans to affordable housing and community development projects.

Loan amounts range between a minimum of $50,000 and maximum of $400,000. NALCAB applies a 0% interest rate, however applicants are expected to pay the legal costs associated with developing the loan documents specific to the state of origin. Loan terms will range from 24 to 84 months, depending upon the nature of the project and a payment schedule will be determined on a case by case basis. Special consideration will be given to applicants who can demonstrate additional funds leveraged from other sources.

Eligible Uses of the Rural RLF Include:

  • Short-term debt capital to assist community lending programs, including Small Business Loans, Micro Loans, Lending Circles, Consumer Loans, DPA Loans
  • Pre-development funds for planning, design, market analysis, legal, and engineering costs
  • Capital to serve as Loan Loss Reserves
  • Gap Financing
  • Loans for Organizational Operations (Applicants requesting short-term loans for operational activities must demonstrate the ability to repay funds under given terms.)

Although technical assistance is not a condition of the loan, NALCAB encourages applicants to also consider submitting a Request for Technical Assistance.

Eligibility

Rural government, tribal, and non-profit affordable housing providers, and community and economic development entities from the following states are eligible: Arizona, California, Colorado, Florida, Hawaii, Indiana, New Mexico, North Carolina, Ohio, Oregon, Texas, and Washington. Eligible rural areas are all non-Urbanized Areas with populations smaller than 50,000. Use the USDA property eligibility tool to verify your organization’s rural eligibility.

Apply

For additional information about the application process, please contact Christopher W. Sanchez at ruralloans@nalcab.org.

Applications are accepted on a rolling basis.