Loans are made to:
Typically, loan applicants are unable to obtain credit elsewhere, but in some instances, farmers able to get credit elsewhere may obtain loans at a rate of interest based on the cost of federal borrowing. Grants are made to:
Funds may be used in urban areas for nearby farm labor. (This is the only Rural Housing Service rural service area exception.)
Loans are for 33 years at 1 percent interest. Grants may cover up to 90 percent of development costs. The balance may be a Farm Labor Housing Program loan.
Upon publication of a Notice in the Federal Register, a two-stage application process is used. In stage one, applicants submit a pre-application, which is used to determine preliminary eligibility and feasibility. Pre-applications selected for further processing will be invited to submit an application. The pre-application consists of SF-424.2, "Application for Federal Assistance (For Construction)" and the information listed in exhibit A-1 or A-2 of Rural Development regulations, 1944-D, as applicable.