Development Loan Program - Terms and Policies

  • Promote projects that will result in a sustainable increase in the productivity of economic resources in rural areas and thereby lead to a higher level of income for rural citizens.
  • RUS borrowers promote economic development in rural areas and job creation projects that are based on sound economic and financial analysis and take a long-term perspective.
  • Encourage economic development in rural areas and job creation projects without regard to service area.
  • To promote financially viable projects.
  • To encourage RUS borrowers to deposit funds in Cushion-of-Credit Accounts.
Terms of Zero-Interest Loan Repayment
  • The signed promissory note covering the repayment of the zero-interest loans between RBS and the RUS borrower establishing when repayments begin.
  • Repayment terms on a loan to the RUS borrower are based on the nature of the project. Ordinarily, the term, including any principal deferment period, will not exceed 10 years.
  • Repayment by the recipient must equal the terms to the RUS borrower, unless approved by the RBS Administrator.
  • Principal repayments may be deferred for a period of up to 2 years by RBS. Ordinarily, the deferment for an established business will be limited to 1 year.