It is very easy to get the Cup Loan as it does not require checking your credit score or credit history. All you need to do is apply to the department by following the steps that have been explained in this article. So, if you are interested in the low-interest funds that this scheme offers and looking for how to get the Cup Loan, relax and read this to the end.

With lots of evidence, it is a fact that the Cup Loan has been helpful to facilities in many rural areas of the country. Through it, many organizations have secured enough funds to restructure their businesses to serve humanity better. No wonder many people out there are looking for how to get the Cup Loan.

If you are here because you want to know about the loan program or you’ve heard of it but do not know how to get it, then follow through the various paragraphs as I unravel how to get it as well as other vital details about it.

What Is A Cup Loan?


The Cup Loan is one of the alleviation programs of the United States Department of Agriculture (USDA). It is aimed at giving loans to public facilities in the rural areas of the country. These loans are meant to be used for restructuring, construction, renovation, re-equipping, and other similar works for the betterment of the facilities.

How To Get A Cup Loan

Interestingly, these loans are given at very low-interest rates as compared to commercial loans. Not only that, you will be given a very long time to repay the loan. With this, you do not have to panic about the loan. The repayment time could be as long as 40 years. Intriguing, right? Now see how to get the loan in the next section.

How To Get A Cup Loan


To get the Cup Loan, you must follow the following straightforward steps.

Step 1: Make Sure You Meet The Eligibility Criteria


This is by far, the most important step as you will not proceed with the application if this is not done. All it involves is for you to research the eligibility criteria of the loan beforehand. With this, you will be able to ascertain if you are eligible to start the application or not. As we proceed, I will show you some of them below. You can also check our website to learn more about them. There are many resources online to abreast of the criteria for the loan.

Step 2: Visit Your Local USDA Rural Development Office


If you meet the criteria in step one above, now proceed to the USDA Rural Development office in your area. There are offices in each state and local area. There you will be given all the guidance that you need on the application process which will lead to getting the loan. See how to find your local USDA.

Step 3: Prepare Your Required Documents


I know that by now, you must have been told about the documents that you will have to submit for a successful application. I will show you some of those documents as we proceed. In the meantime, get all of these documents ready as you will be submitting them along with the entire application package.

Step 4: Fill Out The Various Application Forms


At the office or the online portal, you will be given some application forms to fill out. The forms are many hence you might not be able to complete them immediately. Take them home and take your time to understand each of them. Enter every required information correctly as it will determine whether you will get the Cup Loan or not. Below are some of the application forms.

  • 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 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 5: Submit Your Application


After putting everything together, submit your application package. This can be done in 3 ways. You can submit it at the office directly or send it through an email. You can also visit the USDA online portal, create an account, and send your application.

Step 6: Receive Your Loan


After the application package has been submitted, the department will go through the entire package to make sure that all the information is correct. A thorough investigation will be carried out before approval. If there is a need to require additional information, you will also be contacted. After all of that is done, you will be contacted and the funds will be paid to your desired bank account.

How To Get A Cup Loan For Individuals


The process explained above also applies when you want to get the Cup Loan as an individual. However, you must be the owner of a public facility before you are eligible to apply. See more on the Cup Loan eligibility criteria in the next paragraph.

Eligibility Criteria To Get A Cup Loan


The following are some of the simple criteria for the Cup Loan Program.

  •  Must be a public facility such as a school, hospital, old people’s home, library, park, community center, transport service, etc.
  • The public facility must be located in a rural area with not more than 20,000 people.
  • People living in the area must be in the middle household income or poverty line of 80%.
  • Your facility must not be harmful to the environment and historic edifices in the area.

Requirements To Get A Cup Loan


Some documents that will be required of you as in step 3 above are;

  • A detailed budget for the project
  • An income statement for your project’s operation for at least 5 years.
  • Cash flow statement for your facility for at least 5 years
  • A Debt Service Coverage Ratio (DSCR) showing your Net Operation Income Ratio to Debt Service. And the ratio must not be lower than 1.25. That is, you must have at least 25% more income than your debt payment.
  • A business and strategic plan
  • A recently audited financial statement or annual report
  • Your organizational chart including staff resumes and qualifications, etc.

What Are The Interest Rates Of Cup Loan Program?


The interest rates vary for each application. However, it is usually between 2.275% and 3.385%. The variation could emanate from factors such as the median household income of the area, expected income of the project, etc.


From all that we have discussed on how you get a Cup Loan, you can see that it is a straightforward process. It only needs your dedication and willingness to get the required documents. Therefore by following the steps explained above, you will get your loan soon.