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Rural Development Advance

Rural Development Advance (RDA)

The Rural Development Advance (RDA) provides financing for economic development projects in rural areas that benefit individuals or families with incomes at 115% or less of the area median income. A rural area is defined as a unit of general local government with a population of 25,000 or less.

RDA funding is a non-competitive source of low-priced, medium-term funds that are available in the form of advances to Federal Home Loan Bank of New York (FHLBNY) member community lenders. As part of the suite of Community Lending Programs, RDA Advances are priced below regular FHLBNY advance rates. RDA Advances may be used to finance commercial and economic development projects that meet any of the geographic, individual, or small business criteria listed below:

Geographic Criteria


Located in a neighborhood with a median income at or below 115% of the area median income;


Located in a rural Champion Community, or a rural Empowerment Zone, or a rural Enterprise Community, as designated by the Secretary of USDA;


Eligible for a federal Brownfield Tax Credit;


Located in an Indian area, as defined by the Native American Housing Assistance and Self Determination Act of 1996;


Located in an area affected by a federal military base closing or realignment; and/or


Located in an area identified as a designated community under the Community Adjustment and Investment Program.

Individual Criteria

The annual salaries for at least 51% of the permanent full- and part-time jobs, computed on a full-time equivalent basis, created or retained by the project, other than construction jobs, are at or below 115% of the median income;

At least 51% of the families who otherwise benefit from (other than through employment) or are provided services by the project have incomes at or below 115% of the median income.

Small Business Criteria

Projects that qualify as small businesses as defined by section 3(a) of the Small Business Act and implemented by the Small Business Administration under 13 CFR Part 121.

Examples of commercial and economic projects that qualify for RDA funding

Small business loans

Daycare centers

Manufacturing facilities

Retail stores

Mixed-use buildings

Healthcare facilities

Educational facilities

Warehouse facilities

Grocery stores

Equipment purchases for commercial expansion

Community services, such as fire stations and trucks

Acquisition, construction, refinancing or rehabilitation

Construction or rehabilitation of public or private infrastructure, such as roads, utilities, and sewers

Debt refinancing or consolidation for commercial business

Contact us to learn more about the RDA

email: [email protected]

RDA Success Stories

Member: HSBC Bank USA
Project Name: Parise's Auto & Towing and C.W. Cold Storage
Member: Sun National Bank
Project Name: Congress Hall