Rural Development Grants: An Overview
Rural development grants fund infrastructure, economic growth, community services, and quality of life improvements in rural areas across the United States. Rural communities — defined by USDA as areas with populations under 50,000, and by some programs as under 10,000 or 2,500 — face unique challenges: geographic isolation, limited tax bases, agricultural economic dependence, healthcare and broadband access gaps, and population outmigration. Federal and foundation grantmakers have created extensive programs to address these challenges. This guide covers the major rural development grant sources for nonprofits, local governments, tribal governments, and rural businesses.
USDA Rural Development Programs
USDA Rural Development (RD) administers over 40 loan and grant programs totaling several billion dollars annually. Programs are administered through USDA RD state and local offices — identifying your USDA Rural Development state office is the starting point for any USDA RD application.
Community Facilities Direct Loan and Grant Program
The CF program funds essential community facilities in rural areas including healthcare facilities, schools, libraries, public safety buildings, and community centers. Eligible applicants include municipalities, tribes, and nonprofits. Grants are available for projects in the most economically distressed rural communities (grant percentage increases as community income decreases). Project types include new construction, renovation, equipment, and vehicle purchases for rural emergency services.
Rural Business Development Grants (RBDG)
RBDG provides competitive grants to nonprofits and public bodies to support small and emerging private businesses in rural areas. Opportunity grants fund technical assistance, training, and planning activities for small businesses (under 50 employees). Enterprise grants fund projects to support the development of private businesses (usually through revolving loan funds or micro-enterprise programs). Award sizes range from $10,000 to $500,000.
ReConnect Broadband Program
The ReConnect Program provides grants, loans, and loan-grant combinations for broadband infrastructure in rural areas without adequate service (defined as 100 Mbps service). Awards have ranged from $25,000 to $25 million. Eligible applicants include nonprofits, cooperatives, municipalities, and for-profit businesses. The most recent rounds have prioritized tribal lands and areas with the lowest broadband access levels.
Rural Energy for America Program (REAP)
REAP grants and loan guarantees fund renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses. Grants cover up to 50% of eligible project costs (25% for energy audits and renewable energy development assistance). Applications are accepted on a rolling basis through local USDA RD offices.
Water and Environmental Programs
USDA RD's Water and Environmental Programs fund water and wastewater infrastructure in rural communities. The Water and Waste Disposal Loan and Grant Program provides grants (up to 75% for severely distressed communities) for water systems, wastewater treatment, solid waste, and storm drainage. Eligible applicants are municipalities, tribes, and nonprofits serving rural areas.
Economic Development Administration (EDA)
EDA funds regional economic development in distressed areas, including rural communities. Key programs: Public Works and Economic Adjustment Assistance grants fund infrastructure and facility construction for economic development purposes; Planning grants fund regional planning organizations; Research and National Technical Assistance grants support economic development research. EDA requires matching funds (typically 20–50% of project costs) and focuses on projects projected to create or retain jobs.
Appalachian Regional Commission (ARC) and Delta Regional Authority (DRA)
ARC serves 423 counties in 13 Appalachian states, funding economic development, infrastructure, education, and health projects through its POWER (Partnerships for Opportunity and Workforce and Economic Revitalization) initiative and Area Development grants. DRA serves 252 counties in 8 states in the Mississippi Delta region with similar economic development programming. Both ARC and DRA award grants to local governments, nonprofits, and economic development organizations in their service areas.
Foundation Funding for Rural Development
Private foundations with rural development focus areas include: the W.K. Kellogg Foundation for rural food systems, economic development, and community health; the Annie E. Casey Foundation for rural child and family wellbeing; the Robert Wood Johnson Foundation for rural health access; the Walton Family Foundation for rural conservation and community in the Arkansas/Ozarks region; the Walton Family Foundation's Home Region program; the Ford Foundation for rural economic justice; and the Quixote Foundation for rural environmental stewardship. Many agricultural state foundations (Iowa, Nebraska, Kansas) fund rural development in their regions. Community foundations in rural areas are often the most accessible funders for small rural organizations.
Application Tips for Rural Grants
- Define rural eligibility clearly: Different USDA programs use different rural population thresholds (2,500; 10,000; 20,000; 50,000). Confirm your service area meets the specific program's rural definition before applying. USDA's Eligibility website (eligibility.rd.usda.gov) allows you to enter an address and check program-specific eligibility.
- Engage your USDA RD state office early: USDA Rural Development state offices can pre-screen projects, provide technical assistance, and identify the best program fit before you invest in a full application. Call your state office early in the project development process.
- Leverage matching fund requirements: Many USDA RD programs require matching funds. Identify local government contributions, state grants, and foundation funds that can serve as match before applying. Matching commitments make applications significantly more competitive.
- Document economic distress: EDA and USDA prioritize the most economically distressed rural communities. Pull census data on unemployment rates, poverty rates, and median household income for your service area before writing your application narrative.
Find Rural Development Grants with FindGrants
USDA Rural Development alone administers over 40 programs — and EDA, ARC, DRA, and private foundations add dozens more. FindGrants.io surfaces rural development grant opportunities matched to your organization type, rural geography, and focus area. Enter your profile once and see which rural grants align with your project — so you spend time on proposals, not on cross-referencing program guides.