Top 5 US Government Loan Programs You Didn’t Know About, Apply Now

Are you looking for financial support but don’t know where to start? Many people are familiar with popular government-backed loans, such as student loans or FHA home loans. However, there are several lesser-known loan programs that provide excellent opportunities for small business owners, public servants, rural homebuyers, and students.

In this article, we will explore five US government loan programs that you may not have heard of before. These programs offer significant financial benefits and can help you achieve your goals. Whether you want to buy a home, start a business, or fund your education, these loans can make a big difference. Let’s take a closer look at each of them.

1. Good Neighbor Next Door Program – Home Purchase Discount for Public Servants

The Good Neighbor Next Door Program is designed for teachers, law enforcement officers, firefighters, and emergency medical technicians (EMTs). It allows eligible public servants to purchase homes at a 50% discount, making homeownership more affordable for those who serve their communities.

How It Works

This program, run by the Department of Housing and Urban Development (HUD), helps revitalize neighborhoods by encouraging public servants to live in the areas they serve. Homes eligible for the program are located in designated revitalization areas.

Participants must commit to living in the purchased property for at least three years. By doing so, they help improve local communities while benefiting from substantial savings.

Eligibility Requirements

• Must be a teacher, law enforcement officer, firefighter, or EMT.
• Must purchase a home in a HUD-designated revitalization area.
• Must live in the property for at least three years.

How to Apply

Eligible properties are listed on the HUD Good Neighbor website for seven days at a time. If you find a home that fits your needs, apply quickly before it’s gone! Visit the official HUD website to browse available homes and learn more about the application process.

2. USDA Section 502 Guaranteed Loan – Helping Rural Homebuyers

For those looking to buy a home in rural areas, the USDA Section 502 Guaranteed Loan is a fantastic option. This program provides low-interest, zero down payment home loans for low- to moderate-income buyers in rural and semi-rural regions.

Benefits of the Program

This loan program is designed to promote homeownership in areas with a lower population. No down payment is required, and borrowers benefit from low interest rates, making homeownership more accessible for rural residents.

Eligibility Requirements

• Must be a U.S. citizen or permanent resident.
• The property must be in an eligible rural area (determined by USDA guidelines).
• Household income must meet USDA income limits.

How to Apply

Applications are handled by USDA-approved lenders. You can visit the USDA Loans website to check if your area qualifies and find a list of approved lenders.

3. SBA Microloan Program – Small Business Funding

The Small Business Administration (SBA) Microloan Program provides financial support for small businesses and non-profit childcare centers. If you need funding for working capital, inventory, or equipment, this program can help.

Benefits of the Program

Small businesses can borrow up to $50,000 through this program. Unlike traditional bank loans, SBA Microloans come with affordable interest rates and additional support, including business training and mentoring.

Eligibility Requirements

• Must own or plan to start a small business or a non-profit childcare center.
• Must demonstrate the ability to repay the loan.
• Some applicants may need to participate in business training programs provided by SBA lenders.

How to Apply

Microloans are issued by SBA-approved intermediaries. Visit the SBA Microloan website to find a participating lender and learn more about the application process.

4. Advanced Technology Vehicles Manufacturing (ATVM) Loan Program – Funding for Automotive Manufacturers

The ATVM Loan Program helps manufacturers design and produce fuel-efficient and environmentally friendly vehicles. This program, managed by the Department of Energy (DOE), supports technological advancements in the U.S. auto industry.

Benefits of the Program

This loan encourages innovation by funding the development of energy-efficient vehicle technologies. It helps companies meet environmental standards while boosting American manufacturing.

Eligibility Requirements

• Must be an automotive manufacturer or supplier.
• Must produce advanced technology vehicles or components.
• Must meet fuel efficiency and environmental standards.
• Must demonstrate financial stability and technical expertise.

How to Apply

The DOE ATVM website provides application details, including eligibility requirements and necessary documentation. Manufacturers can apply online through the official DOE ATVM portal.

5. TEACH Grant – Education Funding for Future Teachers

The Teacher Education Assistance for College and Higher Education (TEACH) Grant is designed to encourage students to pursue careers in teaching. This grant offers up to $4,000 per year to students who commit to teaching in high-need fields at low-income schools for at least four years.

Benefits of the Program

Unlike a loan, a grant does not need to be repaid, as long as the recipient fulfills the service commitment. This program helps address teacher shortages in critical subject areas and supports students pursuing education degrees.

Eligibility Requirements

• Must be enrolled in a TEACH Grant-eligible program.
• Must agree to teach in a high-need field (such as math, science, or special education).
• Must work at a low-income school for at least four years.
• Must maintain a minimum GPA requirement.

How to Apply

To apply, students must first fill out the FAFSA (Free Application for Federal Student Aid) and consult with their school’s financial aid office. More information is available on the TEACH Grant website.