USDA Rural Development (RD) runs federal loans and grants for people, small businesses, farms, nonprofits, and local governments in rural California — including most of Nevada County. RD funds housing for low‑income buyers, water and broadband systems, community facilities (clinics, libraries, fire stations), small‑business growth, and renewable‑energy upgrades for farms and rural small businesses.
Who it's for
- Individuals & families: very‑low to moderate‑income rural Californians who want to buy, build, or repair a home.
- Small businesses, farms, and ranches: rural businesses needing capital, energy upgrades, or technical help.
- Nonprofits & local governments: organizations building community facilities, water/wastewater systems, or affordable housing.
If you're not sure your address counts as "rural," check the USDA property eligibility map: https://eligibility.sc.egov.usda.gov/eligibility/.
Main programs (housing)
- Section 502 Direct Home Loan — up to 100% financing for low/very‑low‑income buyers, with payment‑assistance subsidy. Interest rate is 5.00% for low‑income applicants effective May 1, 2026 (subsidy can lower the effective rate to as low as 1%). Self‑assessment tool: https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans.
- Section 502 Guaranteed Loan — 0% down loans through participating private lenders for moderate‑income buyers.
- Section 504 Home Repair Loan & Grant — loans up to $40,000 (1% interest) and grants up to $10,000 for very‑low‑income homeowners to repair/modernize a home or remove health & safety hazards. Grants are restricted to homeowners age 62+.
- Multi‑Family Housing Direct Loans / Rental Assistance — for owners of affordable rural rental properties and for tenants needing rent assistance in eligible properties.
Main programs (business, farm, community)
- Rural Energy for America Program (REAP) — grants and guaranteed loans for solar, efficiency, and renewable‑energy projects for ag producers and rural small businesses.
- Business & Industry (B&I) Guaranteed Loans — loan guarantees for rural businesses.
- Community Facilities Direct Loan & Grant — for nonprofits, tribes, and public bodies building/improving rural hospitals, clinics, schools, libraries, public safety, and child‑care facilities.
- Water & Waste Disposal Loans & Grants — for rural water districts and small utilities.
- ReConnect — broadband construction loans/grants in unserved rural areas.
How to apply
- Confirm your property/business is in an RD‑eligible rural area: https://eligibility.sc.egov.usda.gov/eligibility/.
- Pick the program above that matches your need.
- Contact the California State Office or your local Area Office — they assign a specialist and walk you through paperwork. For housing, you can also start the 502 Direct self‑assessment online.
California contacts
- CA State Office (Davis): 430 G Street, Agency 4169, Davis, CA 95616
- General line: (530) 792‑5800 — toll‑free 1‑800‑670‑6553
- Single Family Housing: 1‑800‑414‑1226
- Multi‑Family Housing: 1‑800‑438‑1832
- Rural Business‑Cooperative Service: 1‑866‑377‑8642
- Water & Environmental Programs: 1‑800‑338‑5546
- Full contacts page: https://www.rd.usda.gov/contactpage/california-contacts
Source
- USDA Rural Development California: https://www.rd.usda.gov/ca
- Single Family Housing Direct Loans (rate confirmed effective 2026‑05‑01): https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
Information verified 2026‑05‑17.