Texas Rural Municipal Finance Program

The Texas Agricultural Finance Authority (TAFA), a public authority within the Texas Department of Agriculture, provides loan (and bond) financing on favorable terms to rural political subdivisions and development entities — city and county governments, economic development corporations, and various districts — to support agricultural businesses and rural economic development. Projects must be located in a rural (non-metropolitan) area of Texas.

Institutional/rural-government borrowers located in rural areas of Texas that provide significant benefit to the rural area and evidence of ability to repay: city and county governments; economic development corporations; hospital districts; rail districts; utility districts; special districts; agricultural districts; and private water and wastewater corporations. The applicant must certify the project is located in a rural (non-metropolitan) area. Not for individual agricultural producers.

Loans (and, where applicable, bonds) from $50,000 up to an amount approved by the TAFA board of directors, with projects targeted at under $1,000,000. Proceeds may fund real estate purchase, building construction, site improvements, equipment, water and wastewater systems, municipal infrastructure, and other projects that support rural economic development. Administered by the Texas Department of Agriculture (program contact: Karl Young, 512-936-0281).