USDA Notice of Funding Opportunity for the Rural Economic Development Loan and Grant Programs (REDLG) for Fiscal Year 2026

FUNDING OPPORTUNITY NUMBER:

RBS–25–BUSINESS–0005

FUNDING AGENCY / AGENCIES:

USDA Rural Business- Cooperative Service (RBCS)

OPPORTUNITY:

This notice is being issued prior to the passage of the FY 2026 Appropriations Act, which may or may not provide funding for this program, to allow applicants sufficient time to leverage financing, prepare and submit their applications, and give the Agency time to process applications within FY 2026.

DESCRIPTION:

The Rural Economic Development Loan and Grant Programs (REDLG) provide financing to Intermediaries to promote rural economic development and job creation projects. Assistance provided to rural and Tribal areas, as defined, under this program may include business startup costs, business expansion, business incubators, technical assistance feasibility studies, advanced telecommunications services and computer networks for medical, educational, and job training services, and Community Facilities projects for economic development. The intermediaries provide financial assistance to eligible ultimate recipients located in rural areas.
COST SHARING: For loans, either the ultimate recipient or the intermediary must provide supplemental funds for the project equal to at least 20 percent of the loan to the intermediary. For grants, the intermediary must establish a revolving loan fund and contribute an amount equal to at least 20 percent of the grant.

ELIGIBLE APPLICANTS:

The following entities are intermediary applicants that provide the financial assistance to ultimate recipients located in eligible rural areas.

• Current USDA Rural Development Electric or Telecommunications programs borrowers
• Former USDA Rural Development borrowers that have paid off their loan or loans
•  Nonprofit utilities eligible for assistance from USDA RD Electric or Telecommunications programs

FUNDING AVAILABILITY:

Funding is anticipated to be approximately $50,000,000 in Loans and $10,000,000 in Grants.

INDIVIDUAL AWARD AMOUNTS:

The Agency anticipates the following maximum amounts per award: Loans—$1,000,000; Grants—$300,000.

APPLICATION DEADLINE(S): APPLICATION:

• First Quarter, September 30 2025
• Second Quarter, December 31, 2025
• Third Quarter, March 31, 2026, and Fourth Quarter, June 30, 2026.

ANTICIPATED AWARD DATES:

1. First Quarter, November 30, 2025.
2. Second Quarter, February 29, 2026.
3. Third Quarter, May 31, 2026.
4. Fourth Quarter, August 31, 2026.

See some of the other Grants and Awards available.