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Rural Economic Development Loan and Grant Programs.

USDA lends or grants funds to eligible rural utility organizations, which pass financing to job-creating businesses and community projects or capitalize revolving loan funds.

Offered byUSDA Rural Business-Cooperative Serviceverified 2026-07-10

Overview

What it does.

A Chester business needs an eligible utility sponsor. The utility applies to USDA for a specific project or revolving fund and then relends to the ultimate recipient; direct business applications are not accepted.

Best for: Job-creating business, training, health, or community projects with an eligible electric or telecommunications utility partner.

Eligibility

Who and what may qualify.

Eligible applicants

  • Current or former Rural Utilities Service electric or telecommunications borrowers
  • Eligible not-for-profit utilities

Applicants excluded by the source

  • Businesses applying directly to USDA
  • Utilities that do not meet program status requirements

Eligible uses

  • Utility pass-through loans for rural job-creating projects
  • Revolving loan funds
  • Business incubators
  • Community and medical facilities
  • Training facilities and equipment
  • Business startup and expansion costs

Uses excluded by the source

  • Projects outside eligible rural areas
  • Uses prohibited by 7 CFR part 4280

Application

How to start.

  1. Ask USDA Rural Development Illinois whether an eligible utility can sponsor the Chester-area project
  2. Develop the project, jobs case, budget, match, and repayment structure with the utility
  3. The utility applies to USDA under the next quarterly cycle

Timing: The last listed FY2026 quarterly deadline passed June 30, 2026; confirm the next cycle.

Planning notes

Limits to account for.

  • Requires an eligible utility applicant
  • Funding is tied to rural job creation or retention
  • The business is not the direct federal applicant

Can fill a financing gap alongside borrower equity and other sources, subject to the utility and USDA project structure.

Evidence

Official sources.