How To Apply For The Cup Loan Program – A Detailed Step By Step Guide!

Nowadays quick access to money is very crucial, especially when you are in need and the United States Department of Agriculture through the Cup Loan Program is helping many public facilities to grow and develop.

If you are also looking for financial assistance for expanding and supporting your public facility project, particularly in a rural area then Cup Loan Program is the right option for you. Today, in this blog post, we are going to provide you with an overview of the Cup Loan Program Application process. We are going to provide a complete guide on Cup Loan Program and its application process, so let’s get started….

Cup Loan Program

How to Apply For the Cup Loan Program?

If you are interested to apply for the Cup Loan Program, then first you have to go through its application process which we are going to discuss below:

Step 1: Visit your local USDA Rural Development Office

In the first step of the Cup Loan Program application process, you have to go to your local USDA Rural Development office. If you do not know its location, then the best part is that you can also find the nearest USDA Rural Development office online. All you have to do is to visit its Official website.

Once you find the location, please go to their office and they will guide you throughout the application procedure. Another thing they will help you with is determining the eligibility of your project. In this way, you will get a clear indication of whether your project is feasible for this loan program.

Step 2: Arrange Required Documents to Prepare your Application

Along with your application form, you also have to attach the required documents that will support your application, making you eligible to get the loan. We are going to provide you with a list of documents that are required to be included in the application:

  1. First, you have to provide a letter describing the purpose of your project including other major details like cost, scope, location, and more.
  2. You also have to provide an initial architectural report which includes specifications about your project design and more.
  3. To provide detailed information regarding your project site and the conditions of the surrounding environment, you will also have to submit a preliminary engineering report along with the application.
  4. You also have to show your financial ability to repay the loan along with operating and maintaining the public facility.
  5. You have to include the Cup loan application form (Form RD 1942-46) that gives basic details regarding your organization and the project.
  6. There should be a loan resolution form (Form RD 1942-47) included in the application that provides the terms and conditions of your loan agreement.
  7. Other than these, you also have to fill few other forms such as Form RD 1940-1, Form RD 1942-46, Form RD 400-1, Form RD 400-4, Form AD-1047, Form RD 1942-49, Form RD 1942-50, Form RD 1942-54 and few more.
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In order to get more details about the requirements of the application and required forms, please visit Community Facilities Direct Loan & Grant Program (USDA).

Step 3: Submit your Cup Loan Application Form with the Required Documents

Once you have filled in the details and arranged all the required documents, then it’s time to submit the application form electronically via RD Apply. It is an online platform that lets you create as well as manage your Cup Loan application online. If you don’t want to submit the application online, then there’s another way which is through mail. You can submit your application by mail or else in person as well. All you have to do is to visit your local USDA Rural Development office and submit the application in person.

Step 4: Wait till you get an Approval

After you have submitted your CUP Loan application form along with the documents, the USDA Rural Development staff will evaluate your application to check eligibility. A technical evaluation of the project will be conducted by the staff. If required, they may also request additional details for clarification. Sometimes, the approval procedure may take a few months based on the size and complexity of the project.

Step 5: Sign the Loan Agreement and receive the Funds

As soon as the application is approved, you are going to get a letter from the USDA regarding the confirmation and it will also include the terms and conditions of your loan agreement. After that, you have to complete the process by accepting the letter of conditions or providing any remaining requirements. These may include getting permits, insurance, or environmental approvals, and more. At last, sign the loan agreement and a promissory note that officially bind you to repay the loan. Once all these steps are done, you will get your loan funds and you can go ahead to begin your project.

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Frequently Asked Questions (FAQs)

Question 1: Is the Cup Loan Program legit?

Answer: Yes! It is a Legitimate loan program.

Question 2: How much money can I borrow from this Program?

Answer: It depends on the cost of your project and your financial ability to repay the amount. The minimum loan amount is $10,000 and there is no limit for the maximum amount.

Question 3: What are the repayment terms?

Answer: The maximum repayment term is 40 years, however, it depends on your project type and financial ability so it can be shorter as well.

Question 4: Is there any fee and charges for the Cup Loan Program?

Answer: Yes, there will be a one-time $100 application fee and an initial service fee of 1 percent of the loan amount. You also have to pay an annual service fee of the outstanding principal balance and it will be of 0.5 per cent.

There will be a late payment fee as well of the overdue amount and it is 5%. On top of that, a prepayment penalty of 1% of the prepaid amount will also be charged if you pay off your loan before its maturity period.


The Cup Loan Program is a low-interest loan program that is offered by the USDA without letting you go through several documentation in the application process. The best part is that the process is transparent and you can trust this loan program as it is completely legitimate and provide proper information and secure your personal details throughout the process. Another best thing is that you can also combine this loan program with other funding sources like grants, donations, etc., just make sure to disclose all other funding sources in your application to get approval from USDA Rural Development.

I'm Georgina, a Freelance Content Writer and Blogger having couple of years of experience in Loan Industry. I founded in 2023, a Loan Finance Blog based in United States, Provides the Expert Opinion and Guidelines. I Specialize in creating high-quality content related to Finance and Loan in order to Promote financial literacy and consumer rights.

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