Texas Rural Community Loan

The Texas Rural Community (TRC) Loan provides affordable access to needed financing in the form of a traditional loan, bond, or other securities (i.e., anticipation note) for rural communities to capitalize diverse economic development projects and support the agricultural industry.

The TRC Loan offers a cost-effective alternative to revenue bonds, with significantly reduced costs of issuance and competitive rates.

Eligible Applicant

• Eligible applicants are rural Economic Development Corporations (EDCs) and rural political subdivisions, including Municipal Development Districts (MDDs).
• A rural area means an area that is predominately rural in character; an unincorporated area or a city with a population under 50,000; or a county with a population under 200,000.

Eligible Use of Proceeds

• Proceeds can be used to capitalize economic development projects including infrastructure, business recruitment and expansion, community facilities (i.e. healthcare facilities), and any other eligible use that can be identified to improve or assist in rural economic development and/or impact the agricultural industry.

Application Details

• Maximum loan amount - $5 million.
• Loan applications are accepted on a rolling basis.
• The applicant must commit to at least a ten (10%) equity contribution into the project either in the form of cash and/or assets directly associated with the project identified in the application.
• Loans must be fully collateralized.
• The application fee is $1,000. If the loan is closed, the fee will be applied to the principal.
• To begin the application process, please reach out to EconomicDevelopment@TexasAgriculture.gov