Cup Loan Program Application : 6 Steps To Apply Now

Do you know that you can get as much as a $50,000 low-interest loan to finance your public facility project in a rural area? Yes, you can and the application process is quite easy. You however must meet the eligibility criteria to qualify for the loan. In this article, we have explicitly explained the Cup Loan Program application. Not just that, we went further to help you understand the program by answering other questions that you may likely ask. So sit back and read through it all before you apply.

Starting up, building, renovating, and re-equipping a public facility involves many financial commitments and could be draining sometimes. On some occasions, the projects are abandoned halfway because of insufficient funds. And this situation most times has negative effects on the populace who such facilities are meant to serve. This is why the Cup Loan Program is here to give low-interest-rate loans to help start and complete such projects. 

In this article, we are going to detail the Cup Loan application process, what qualifies you to apply and get the loan, the benefits of this program, and so much more. If you are just coming across this program, read the next paragraph as we begin by giving an overview of what the program is all about. 

What Is A Cup Loan?


Also called the Community Use of Public Facility (CUPF), the Cup Loan Program is a financial intervention scheme by the government of the United States. It is meant to give loans to individuals and corporate bodies to finance public facilities in rural areas. It does this by collaborating with the United States Department of Agriculture (USDA). 


With this program, owners of public facilities can get up to $50,000 to finance their projects. It is meant for construction, renovation, re-equipping, and repair of such facilities. The most interesting part of it is that it comes at a very low interest rate with a long repayment time. You can repay the loan for as long as 40 years. That’s interesting, right? I know you want to apply right away. See how to apply for the Cup Loan Program below. 

Cup Loan Application


The Cup Loan Program application is straightforward but quite cumbersome. So, before you begin, it is best to make inquiries and get all your documents prepared. Take the following 6 steps to apply for the loan.

Step 1: Contact Your Local USDA.


The first stage in the application is to visit or contact the USDA Rural Development office in your locality. Here, you will get all the necessary guidance about the application. They will also help you to access your documents and projects to see if it is qualified for the loan. If everything goes well, you will then proceed to the next stage.

Step 2: Submission Of Required Documents.


In this stage, you have to submit all the documents that will facilitate the loan approval. Some of those documents are:

  • A letter that describes your project and intention including its scope, location, cost, etc
  • An architectural report showing the design of your project and other specifications.
  • An engineering report about the site of your project.
  • A legal permit that shows your capability to borrow funds and execute projects.
  • A feasibility report that shows your ability to repay the loan.

Step 3: Fill Out The Loan Application Form: 


Now you will be presented with the following forms to fill out. Make sure that every information filled out on the form is correct because they will be checked before approval. The forms are;

  • The Cup Loan application form that should provide basic information about your project. This form is known as Form RD 1942-46.
  • A resolution form for the loan which is known as Form RD 1942-47. This contains the terms and conditions of the loan.
  • Form RD 1940-1 Request for obligation of funds
  • Form RD 1940-20: Request for Environmental Information
  • Form RD 1942-50: financial feasibility report
  • Form RD 1942-51: project budget and cost analysis
  • Form RD 1942-52: sources and use of funds
  • Form RD 1942 53: project management plan
  • Form RD 400-1: Equal Opportunity Agreement
  • Form AD-1049 drug-free workplace certification requirements., and many others.

Step 4: Submission Stage


Now, it is time to submit your application. And this can be done in 3 ways. Firstly, The application can be submitted through the RD online portal. Here you can create and manage your application online. You can also submit it by sending an email to the USDA Rural Development office. Lastly, you can visit the USDA office near you and apply. 

Step 5: Loan Approval Stage


This is the stage whereby your application will be reviewed by the USDA Rural Development office. A technical evaluation will be conducted on your project. Note that you might be required to submit more information and to give more clarifications where needed. This stage could take a few months to complete.

Step 6: Disbursement Of Funds

If your application is approved, you will receive some documents including an agreement form and the terms of the loan. After all of these have been signed, the funds will be sent to your bank account. 

Who Can Apply For The Cup Loan Program?


Any public organization that has a public facility that provides essential or community service in a rural area can apply for the Cup loan. However, you must meet the eligibility criteria that are stated in the next paragraph.

What Qualifies You To Apply For  Cup Loan Program? Eligibility Criteria For The Cup Loan Program


  • The facility must be located in a rural area with a population of at least 20,000 people.
  • The facility must not constitute environmental hazards to the community
  • It must not have adverse effects on the historical properties of the environment.
  • It must have a good financial and feasibility record.

What Kind Of Facilities Can Apply For The Cup Loan Program Application?


Any public facility located in a rural area can apply for the loan. Some of them are schools, health centers, community centers, parks, hospitals, etc. 

What Are The Cup Loan Program Interest Rates?


The interest rates vary from one person to another. The variation depends on factors such as availability of funds, repayment period, previous financial record of the facility, etc.



The Cup Loan program is very much beneficial especially, as its interest rate is lower than you will get elsewhere. However, it is not a personal loan. The eligibility criteria are quite easy. We have shown you how to apply for the program in 6 simple steps. And I hope that by following every step discussed above, you will get approval for the loan.

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