Cup Loan Program Application 2024. How to Apply Step-by-Step?

Are you looking for financial assistance to support your public facility project in a rural area? Look no further! In this article, we will provide you with comprehensive information about the Cup Loan Program Application online, a low-interest loan program offered by the USDA. We will guide you through the application process, eligibility criteria, and the benefits of this program. Let’s dive in!

Cup Loan Program Application

Cup Loan Program How to Apply

Wanna score some cash for that worn-down town hall? Snagging a CUP loan from the USDA is a cakewalk. Just ring up your local rural development peeps, fill out the forms, send them your docs, and then wait for the green light. I’ll walk you through the easy application step-by-step.

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What is the Cup Loan Program?

The Cup Loan Program, also known as the Community Use of Public Facilities (CUPF) Loan Program, is designed to provide financial aid for the construction, renovation, and improvement of public facilities in rural areas. This initiative aims to enhance the quality of life and foster economic growth in rural communities across the United States.

Administered by the USDA Rural Development, the Cup Loan Program operates under Section 306 of the Consolidated Farm and Rural Development Act. This program offers low-interest loans with terms of up to 40 years.

The Cup Loan Program can be used for various types of projects, such as:

  • Purchase or installation of equipment, furniture, fixtures, or technology for public facilities.
  • Development or expansion of recreational facilities or services for public use.

Cup Loan Application – Who can apply?

The Cup Loan Program Application is open to any public body that operates a public facility in a rural area. A public body can be a state, county, city, town, township, district, authority, or other political subdivision of a state. A public facility can be any facility that provides essential community services to the public.

To be eligible for the Cup Loan Program, the public body must meet the following criteria:

– The project must be located in a rural area with a population of 20,000 or less.

– Your project should serve a rural area with a median household income below the higher of the poverty line or 80% of the state nonmetropolitan median household income.

– The project must demonstrate financial feasibility and sustainability.

– Your project should comply with federal, state, and local laws and regulations.

– The project must not adversely affect the environment or historic properties.

How to apply for a Cup Loan Program?

If you’re interested in the Cup Loan Program Application, here are the steps you need to follow:

1. Contact your local USDA Rural Development office.

You can find your nearest office by visiting the Official website of USDA Rural Development. Your local office will provide you with guidance and assistance throughout the application process. They will also help you determine if your project is eligible and feasible for the program.

2. Prepare your application package.

You will need to submit various documents and forms to support your application. Some of the required documents include:

– A letter of intent that describes your project and its purpose, scope, cost, location, and beneficiaries.

– A preliminary architectural report that provides detailed information about your project design and specifications.

– A preliminary engineering report that provides detailed information about your project site and environmental conditions.

– A financial feasibility report that demonstrates your ability to repay the loan and operate and maintain the facility.

– A legal opinion that certifies your legal authority and capacity to borrow funds and execute contracts.

– A resolution that authorizes your application and designates an official representative.

– A Cup loan application form (Form RD 1942-46) that provides basic information about your organization and project.

– A loan resolution form (Form RD 1942-47) that outlines the terms and conditions of your loan agreement.

You will need to fill out several forms These include:

  • Form RD 1940-1: Request for Obligation of Funds
  • 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 Responsibility Matters
  • 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 Uses of Funds
  • Form RD 1942-53: Project Management Plan
  • Form RD 1942-54: Project Schedule

You can find more information about the application requirements and forms by visiting Community Facilities Direct Loan & Grant Program (USDA).

3. Submit your Cup Loan application package.

You can submit your application package electronically through RD Apply, an online portal that allows you to create and manage your application online. You can also submit your application package by mail or in person to your local USDA Rural Development office.

4. Wait for approval.

After you submit your application package, it will be reviewed by USDA Rural Development staff for completeness and eligibility. They will also conduct a technical evaluation of your project design and feasibility. They may request additional information or clarification from you if needed. The approval process may take several months, depending on the complexity and size of your project.

5. Receive your loan funds.

Once your application is approved, you will receive a letter of conditions that outlines the terms and conditions of your loan agreement. You will need to accept the letter of conditions and complete any remaining requirements, such as obtaining permits, insurance, and environmental clearances. You will also need to sign a loan agreement and a promissory note that legally binds you to repay the loan. After you complete these steps, you will receive your loan funds and start your project.


Here, we provide answers to some FAQs about the Cup Loan Application:

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

A: The amount of money you can borrow from the Cup Loan Program depends on the cost of your project and your repayment ability. There is no maximum loan amount, but the minimum loan amount is $10,000.

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

A: The interest rate for the Cup Loan Program is determined by the median household income of the area where your project is located. As your income decreases, the interest rate decreases as well. If your project meets specific energy efficiency standards, the interest rate can be further reduced by 1%. The current interest rates for the Cup Loan Program are:

– Poverty: 2.375%

– Intermediate: 3.125%

– Market: 3.875%

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

A: The repayment terms for the Cup Loan Program are based on your project’s useful life and repayment ability. The maximum repayment term is 40 years, but it can be shorter depending on your project type and financial situation.

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

A: Yes, you can combine the Cup Loan Program with other funding sources, such as grants, donations, or other loans. However, you must ensure that there is no duplication or conflict of interest among the funding sources. You must also disclose all other funding sources in your application and obtain approval from USDA Rural Development.

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

A: The fees and charges for the Cup Loan Program include:

  • A one-time application fee of $100
  • A one-time initial service fee of 1% of the loan amount
  • An annual service fee of 0.5% of the outstanding principal balance
  • A late payment fee of 5% of the overdue amount
  • A prepayment penalty of 1% of the prepaid amount if you pay off your loan before maturity
Q: Is Cup Loan Program legit?

A: Yes, the Community Use of Public Facilities loan program from the U.S. Department of Agriculture is legit, It provides real low-interest loans for building or fixing up things like hospitals, fire stations, or community centers in small rural towns across the country.


The Cup Loan Program is a great opportunity for public facilities in rural areas to obtain low-interest loans for their construction, renovation, or improvement needs. The program can help public facilities enhance their services and facilities, improve their quality of life and economic growth, and serve their rural communities better.

If you’re interested in applying for the Cup Loan Program, don’t hesitate to contact your local USDA Rural Development office today. They will guide you through the application process and help you make your project a reality.

We hope this blog post has been informative and helpful for you. We believe that this blog post has provided you with the required information and assistance. If you have any questions or comments about the Cup Loan Program Application, feel free to leave them below. We’d love to hear from you!

Cup Loan Program

I'm Ellie, a freelance writer with years of experience in the loan industry. Based in the United States, I founded, a loan finance blog providing expert advice and insights. I specialize in creating high-quality content promoting financial literacy and consumer rights to ensure fair and transparent lending access.