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               Researh Sevice






USDA Rural Development and COVID-19:

Supplemental Funding and Agency Actions



May 15, 2020
The U.S. Department of Agriculture (USDA) Rural Development agency (RD) administers loan, grant,
and technical assistance programs that support infrastructure, housing, and business development in rural
areas. In response to the COVID- 19 pandemic, Congress provided supplemental funding to certain RD
programs. In addition, RD has taken a number of actions to provide relief for current program participants
and assist potential applicants in applying for program funding.

CARES Act Provisions Related to USDA RD Programs
Congress included supplemental funding for, and provisions related to, RD programs in the Coronavirus
Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136). Division B of this act includes $25
million for the Distance Learning and Telemedicine (DLT) Program and $100 million for grants under the
ReConnect broadband pilot program. It also provides a $20.5 million loan subsidy for the Business and
Industry Loan Guarantee Program, which will support approximately $1 billion in loan guarantees to
businesses in eligible rural areas. The loan subsidy is the estimated cost of providing a certain level of
loans, including administrative costs and the potential costs of borrower defaults.
In January 2020, prior to enactment of the CARES Act, RD began accepting applications for the second
round of ReConnect ftinding. In March 2020, after President Trump signed the CARES Act into law, RD
announced that it would use the supplemental CARES Act funding to award additional grants under the
second round of ReConnect. The application window for the second round of ReConnect was open from
January 31 to April 15, 2020. In April 2020, RD announced a second application window for FY2020
DLT funding and stated that it will use the supplemental CARES Act funding in addition to unused funds
from the first FY2020 DLT application window. The application window for DLT is open April 14-July
13, 2020. RD accepts applications for the Business and Industry Loan Guarantee Program year-round.
The CARES Act's foreclosure moratorium, single-family and multifamily mortgage forbearance
provisions, and eviction moratorium apply to RD rural housing programs, including single-family and
multifamily direct and guaranteed loans and rural rental assistance. Prior to enactment of the CARES Act,
RD had implemented its own foreclosure moratorium and forbearance options as well as more limited
eviction protections for its multifamily and single-family programs.

                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                    IN11391

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