Cup Loan Program Application Guide. How to Apply Step-by-Step

Are you in need of financial support to fund your public facilities project in a remote area? Look no further! This post will provide you with all the necessary information to apply online for the USDA’s low-interest loan program, the Community Facilities Loan Program (Cup Loan Program). We will guide you through the advantages of this program, the eligibility criteria, and the application process. Let’s begin!

Cup Loan Program Application

What is the Cup Loan Program

The Community Use of Public Amenities (CUPF) Loan Program, also known as the Cup Loan Program, is intended to offer financial assistance for the building, remodeling, and improvement of public amenities in rural areas. This program aims to improve rural areas’ quality of life and promote economic development nationwide.

The Consolidated Farm and Rural Development Act’s Section 306 governs the Cup Loan Program, which is run by the USDA Rural Development. Low-interest loans with periods of up to 40 years are available through this scheme.

A variety of projects, including the purchase or installation of equipment, furnishings, fixtures, or technology for public facilities, are eligible for funding through the Cup Loan Program.

Cup Loan Program Application – Who Can Apply?

Any public organization that runs a public facility in a rural location is eligible to apply for the Cup Loan Program application. A state, county, city, town, township, district, authority, or other state political subdivision can be a public entity. Any building that offers the general public basic communal functions qualifies as a public facility.

The public entity must satisfy the following requirements in order to be eligible for the Cup Loan Program:

– The project must be located in a rural area with a population of 20,000 or less in order for the public body to qualify for Cup Loan Program.

– Your project must benefit a rural community with a median household income that is at or below           80% of the state’s nonmetropolitan median household income, whichever is lower can apply for cup loan program application.

– The initiative must show that it is sustainable financially.

– Federal, state, and local laws and regulations must be followed by your project.

– Neither the environment nor historic assets may be negatively impacted by the project.

How to apply for the Cup Loan Program

Here are the procedures you must follow if you want to apply for the Cup Loan Program application:

1. Get in Touch with your Local USDA Rural Development Office

Visit the USDA Rural Development website to locate the office that is closest to you. Throughout the application process, you will receive direction and support from your local office. They will also assist you in determining the viability and eligibility of your project for the program.

2. Prepare your Application Package

Various papers and documentation must be submitted with your cup loan program application. Among the necessary paperwork are:

– A statement of intent outlining the goals, objectives, budget, site, and beneficiaries of your project.

– A draft architectural report with comprehensive details on the layout and requirements of your project.

– An engineering report that offers comprehensive details regarding the project site and surrounding conditions.

– A report on the facility’s financial viability that confirms your capacity to pay back the loan and run and maintain it.

– A legal opinion attesting to your legitimacy and ability to enter into agreements and borrow money.

– A resolution approving your application and appointing a designated official as your representative.

• A Cup loan application form (Form RD 1942-46) containing fundamental details for your company and project.

– The terms and conditions of your loan arrangement are outlined in a loan resolution form (Form RD 1942-47).

You will need to fill out several forms for cup loan program application, These include:

. Form RD 1940-1: Request for Obligation of your Finance

. Form RD 1942-46: Letter of Intent to Meet Conditions

. Form RD 400-1: Equal Opportunity Agreement

. Form RD 400-4: Assurance Agreement

. Form AD-1047: Certification Regarding Debarment, Suspension, and Other Obligated issues

. Form AD-1049: Certification Regarding Drug-Free Workplace Requirements

. Form SF-LLL: Disclosure of Lobbying Activities

. Form RD 1940-20: Request for Environmental Information

. Form RD 1942-47: Preliminary Engineering Report

. Form RD 1942-48: Preliminary Architectural Feasibility Report

. Form RD 1942-49: Project Summary

. Form RD 1942-50: Financial Feasibility Report

. Form RD 1942-51: Project Budget/Cost Analysis

. Form RD 1942-52: Sources and Usage of Funds

. Form RD 1942-53: Project Management Plan

. Form RD 1942-54: Project Schedule

You can get further information about the cup loan program application requirements and forms by exploring Community Facilities Direct Loan & Grant Program (USDA).

3. Submit your Cup Loan Program Application Package

Through RD Apply, an online site that enables you to construct and maintain your cup loan program application online, you can submit your application package electronically. You can also deliver your cup loan program application materials in person or by mail to the USDA Rural Development office in your area.

4. Wait for Approval

The USDA Rural Development staff will examine your application packet after you’ve submitted it to make sure it’s complete and eligible. They will also carry out a technical assessment of the viability and design of your project. If necessary, they could ask you for clarification or further details. Depending on the size and complexity of your project, the cup loan program application approval procedure can take several months.

5. Receive your Loan Funds

You will receive a letter of conditions outlining the terms and conditions of your loan agreement after your application is accepted. You must accept the letter of terms and finish any outstanding tasks, like acquiring licenses, insurance, and environmental clearances. A promissory note and cup loan program application agreement that obligates you to repay the debt must also be signed. Following these procedures, you will obtain your loan cash and be able to begin your project.


Here are some frequently asked questions about the Cup Loan program Application and our responses:

Q: How much money can I borrow from the Cup Loan Program? 

A: Your ability to repay the loan and the cost of your project will determine how much you can borrow via the Cup Loan Program. The lowest loan amount is $10,000, however there is no maximum lending limit.

Q: What is the interest rate for the Cup Loan Program? 

A: The median household income of the area where your project is located determines the interest rate for the Cup Loan Program. The interest rate falls along with your income. The loan rate might be further lowered by 1% if your project satisfies particular energy efficiency requirements. The Cup Loan Program’s current interest rates are:

– Poverty: 2.375%

– 3.125% for intermediate.

– 3.875% for the market

Q: What are the repayment terms for the Cup Loan Program?

A: The Cup Loan Program’s payback periods are determined by the usable life of your project and your capacity to make payments. The 40-year maximum repayment period may be shortened depending on the nature of your project and your financial status.

Q: Can I combine the Cup Loan Program with other funding sources? 

A: The Cup Loan Program can be used in conjunction with other financial options like grants, gifts, or other loans. But you need to make sure that none of the financing sources overlap or have a conflict of interest. Additionally, you need to declare all other funding sources in your application and get USDA Rural Development’s permission.

Q: What are the fees and charges for the Cup Loan Program? 

A: The following are the costs associated with the Cup Loan Program:

a $100 one-time cup loan program application fee

a one-time, 1% of the loan amount upfront service charge

0.5% of the outstanding principal balance as a yearly service fee

5% of the amount past due as a late payment penalty

If you pay off your loan before it matures, there will be a prepayment penalty of 1% of the amount prepaid.

Q: Is the Cup Loan Program legit?  

A: Yes, it’s is a legit.


Public facilities in rural areas have a great opportunity to get cup loan program application on low-interest loans for their building, remodeling, or improvement needs under the Cup Loan Program. The program can assist public institutions in improving their services and infrastructure, as well as their quality of life and economic development, and their ability to serve rural areas.

Do not hesitate to get in touch with your regional USDA Rural Development office right away if you are interested in applying for the Cup Loan Program. They’ll walk you through the application procedure and assist you in realizing your project.

We sincerely hope you found this blog post to be educational and beneficial. We hope that this blog post has given you the necessary knowledge and support. Please feel free to leave any comments or questions you may have concerning the Cup Loan Program Application below. Please get in touch with us.

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