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USDA Community Facilities Direct Loan and Grant Program.

USDA provides affordable loans and limited grants for essential community facilities in eligible rural communities.

Offered byUSDA Rural Developmentverified 2026-07-10

Overview

What it does.

Chester is below the program's 20,000-resident population ceiling. Eligible public and nonprofit projects can include health, public safety, childcare, community, educational, food-system, and other essential facilities.

Best for: A nonprofit or public essential-service building, renovation, vehicle, or equipment project.

Eligibility

Who and what may qualify.

Eligible applicants

  • Public bodies
  • Community-based nonprofit corporations
  • Federally recognized tribes

Applicants excluded by the source

  • Private commercial businesses
  • Facilities that do not provide an essential community service

Eligible uses

  • Purchase, construction, or improvement of essential community facilities
  • Equipment
  • Related project expenses

Uses excluded by the source

  • Private commercial or business undertakings

Application

How to start.

  1. Contact USDA Rural Development in Illinois before preparing forms.
  2. Confirm the facility, service area, applicant, and financial feasibility.
  3. Complete the required architectural, environmental, and financial documentation.

Timing: The Illinois page states applications are accepted throughout the federal fiscal year.

Planning notes

Limits to account for.

  • The facility must provide an essential community service and cannot be a private commercial undertaking.
  • Applicants must be unable to finance the project at reasonable rates and terms from their own resources or commercial credit.

USDA allows combinations with its guarantees and commercial financing when all requirements are met.

Evidence

Official sources.