Financing Resources for Cooperative Development

Cooperatives can receive guaranteed loans through the USDA RD Business and Industry Loan Guarantee Program. These loans can be used, for example, to convert a business to an employee-owned worker cooperative; enlarge, repair, or modernize a business; purchase and/or develop land.

USDA Rural Development Distance Learning & Telemedicine (DLT) Grant program helps rural communities use advanced telecommunications technology to connect to each other - and the world - overcoming the effects of remoteness and low population density. We encourage you to consider projects that promote equity and economic opportunity in rural America for this competitive grant. Eligible applicants include most entities that provide education OR health care through telecommunications, including: State and local governmental organizations; Federally-recognized Tribes; non-profit organizations; incorporated, for-profit businesses; groups of eligible entities working together.

USDA Rural Development has an Intermediary Relending Program (IRP) that provides 1 percent low-interest loans to local lenders including cooperatives (“intermediaries”) that re-lend to businesses to improve economic conditions and create jobs in rural communities. Eligible applicants include non-profits, cooperatives, tribal, and public agencies. If you are in need of loan, please contact your local Rural Development office for a list of lenders/intermediaries. Please see website and regulations for more details.

USDA Rural Development Rural Business Development Grant (RBDG) program is designed to provide technical assistance and training for small, rural businesses. Small means that the business has fewer than 50 new workers and less than $1 million in gross revenue and check our eligibility map for rurality. Eligible applicants could include towns, communities, state agencies, authorities, nonprofits, institutions of higher education, tribal, and rural cooperatives. Please see website and regulations for more details.

USDA RD Rural Cooperative Development Grant (RCDG) is a competitive award to cooperative development centers that help individuals and businesses start, expand, or improve rural cooperatives and other mutually owned businesses. Eligible applicants include institutions of higher learning and non-profits. Cooperatives looking for assistance, please click on cooperative development centers above. Please see website and regulations for more details.

The USDA Rural Development Agency's Rural Economic Development Loan and Grant Program provides funding for rural projects through local utility organizations. The rural utility is the applicant under this program and, if successful, receives a zero-interest loan. This funding can be passed through to local cooperatives and other businesses for projects that will create and retain employment in rural areas.

USDA Rural Development Rural Energy for America Program Energy Audit & Renewable Energy Development Assistance Grants program assists rural small businesses and agricultural producers by conducting and promoting energy audits and providing Renewable Energy Development Assistance (REDA). Eligible applicants are: state and local governments; federally-recognized tribes; a land-grant college or university or other institutions of higher education; rural electric cooperatives; public power entities; an instrumentality of a state, tribal or local government; a Resource Conservation & Development Council. If you would like to get a list of these auditors for your energy audit needs, please contact your State Energy Coordinator.

Rural Energy for America Program (REAP) Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants provides guaranteed loans and grants to agricultural producers and rural small businesses/cooperatives for renewable energy systems or to make energy efficiency improvements. Please see website and regulations for more details.

The Socially Disadvantaged Groups Grant (SDGG) with USDA Rural Development is a competitive program provides funds so cooperative development centers and cooperatives apply to assist socially disadvantaged groups to create or assist cooperatives. Eligible applicants include cooperatives and cooperative development centers, please see website and regulations for more information.

The USDA Rural Development Value-Added Producer Grant (VAPG) program helps agricultural producers enter value-added activities to generate new products, create and expand marketing opportunities, and increase producer income. Eligible applicants could be individuals, farmers, ranchers, cooperatives, tribal entities, or agricultural producer groups, please see website and regulations for details.