Presentation on theme: "Business Program Opportunities Overview of Business Programs."— Presentation transcript:
Business Program Opportunities Overview of Business Programs
Today’s Presenters Include: Mark Brodziski, Director Specialty Programs Division Mark.Brodziski@wdc.usda.gov John H. Broussard, Director, Business and Industry Division John.Broussard@wdc.usda.gov Presenters
Business Programs Lillian Salerno, Acting Administrator Pandor H. Hadjy, Deputy Administrator Mary Ann Clayton, Asst. Deputy Administrator John H. Broussard, B&I Division Director William Smith, Energy Director Mark Brodziski, Specialty Programs Director
Objectives Become familiar with USDA Rural Development Rural Business—Cooperative Programs: B&I Guaranteed Loan Program Specialty Programs Division Energy Programs Division Cooperative Programs
USDA Rural Development The mission of USDA Rural Development is to increase economic opportunity and improve the quality of life for all rural Americans.
Rural Business Programs Enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace.
We accomplish this by: Investing financial resources and providing technical assistance to businesses located in rural communities Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity
Business Programs B&I Guaranteed Loan Program Intermediary Relending Program Rural Business Enterprise Grant Program Rural Economic Development Loan and Grant Program Rural Microenterprise Assistance Program Rural Business Investment Program Energy Programs
Business & Industry Guaranteed Loan made for state of the art drilling barge used within inland waters of the Gulf Coast.
Business & Industry Chef Paul Prudhomme’s hometown Andouille and Tasso Meat processing facility.
Business & Industry Sells peanuts to Mars Candy to produce Snickers and peanut M&Ms
Specialty Programs Intermediary Relending Program (IRP) Rural Business Enterprise Grant Program (RBEG) Rural Economic Development Loan and Grant Program (REDLG) Rural Microenterprise Assistance Program (RMAP) Rural Business Investment Program (RBIP)
Specialty Programs Eligible applicants/intermediaries: Rural public entities (towns, communities, State agencies, and authorities) Indian tribes Non-profit corporations Some cooperatives for IRP REDLG is limited to entities eligible for USDA-RUS Electric & Telecomm
Highlights: Businesses and projects assisted must be located in a rural area Matching or supplemental funding is generally required Program funding is competitive Applications are processed through Rural Development Area and State Offices Specialty Programs
Rural Energy for America Program Created in the 2002 Farm Bill as the Section 9006 program Revised in the 2008 Farm Bill as Section 9007, Rural Energy for America Program
REAP – 3 programs in 1 Energy Audits & Renewable Energy Development Assistance Feasibility Study grants Equipment & construction of renewable energy and energy efficiency projects
REAP – Part 1 EA/REDA Renewable Energy Development Assistance/Energy Audit – includes site evaluations for rural small businesses and agricultural producers to utilize more energy efficient measures and to use renewable energy technologies and resources.
REAP - Part 1 - EA/REDA Eligible applicants Governmental (State, Tribal and Local) Institutions of Higher Education Electric cooperatives Public power entities
REAP – Parts 2 & 3 Renewable Energy Systems Wind Solar GeothermalBiomass Hydro Power Hydrogen Energy Efficiency Improvements Buildings Industrial (Equipment) **Replacement**
Feasibility Study Grants Up to 25% of eligible project costs Maximum: Lesser of $50,000 or 25% of cost Minimum: None Determine Feasibility of Renewable Energy Systems
REAP – parts 2 & 3 Eligibile Applicants Agricultural Producers Directly engaged in ag production 50%+ of gross income comes from ag production Electric Cooperatives (considered a small business as long as annual electric output is < 4 million MW hours) Rural Small Businesses Must meet SBA small business size standards Use NAICS code for industry type: http://www.sba.gov/size/ind ex.html http://www.sba.gov/size/ind ex.html
Renewable Energy Energy derived from a wind, solar, biomass, or geothermal source; or hydrogen derived from biomass or water using wind, solar, biomass, or geothermal energy sources Renewable energy system A system that produces or produces and delivers usable energy from a renewable energy source.
Energy Efficiency Improvement Improvements to a facility, building, or process that reduces energy consumption, or reduces energy consumed per square foot.
Eligible Costs This program is for bricks and mortar projects, so the majority of funds should go towards: Post application purchase & installation of equipment Post application construction or project improvements
Renewable Energy Examples Solar installation to provide power to a rural small business or farm operation Wood burning furnace to supply heat to the farm/construction shop Anaerobic digester for a dairy operation to capture methane, convert it to electricity, and to sell to the local utility Wind turbines producing electricity to power livestock buildings
Energy Efficiency Improvement Examples Replace a grocery store’s coolers and freezers with high efficiency models. Replace ventilation system in dairy barn Purchase a high efficiency grain dryer to replace an older dryer. Applicant could be an agricultural producer or small grain elevator. Replace old inefficient furnace in retail shop with high efficiency HVAC system.
Common Inquiries which are INELIGIBLE Residential improvements Most common request – Solar to power home on a farm Projects for Schools, Communities or not-for-profits Landfill projects (methane gas extraction) Research and Development projects
Types of Financial Assistance Grant Only Up to 25% of total eligible costs Guaranteed Loan Only Up to 75% of total eligible costs Combination Grant & Guaranteed Loan (Combo) Up to 75% of total eligible costs (grant cannot exceed 25%)
Funding Limits Renewable Energy Minimum grant - $2,500 Maximum grant - $500,000 Minimum loan - $5,000 Maximum loan – $25 million Energy Efficiency Minimum grant - $1,500 Maximum grant - $250,000 Minimum loan - $5,000 Maximum loan – $25 million
Cooperative Programs Value Added Producer Grant (VAPG) Rural Cooperative Development Grant (RCDG) Rural Business Opportunity Grant (RBOG)
Value-Added Producer Grant Purpose: The Value-Added Producer Grant (VAPG) Program is intended to provide grant funds to agricultural producers for planning activities and working capital expenses to assist them in receiving a greater share of the consumer’s dollar for value-added agricultural products
Value-Added Producer Grant VAPG Applicant Eligible Entities: 1.Independent Producer 2.Farmer or Rancher Cooperative 3.Agricultural Producer Group 4.Majority-Controlled Producer-Based Business Venture
VAPG Product Eligibility 1.Change in physical state (e.g. lamb chops, diced tomatoes) 2.Differentiated production or marketing (e.g. organic) - must reference a business plan 3.Product segregation (e.g. identity-preserved corn) 4.Farm-based renewable energy 5.Aggregation and marketing as a locally produced agricultural food product
VAPG Purpose Eligibility Planning Grants ($100,000 maximum) - activities to determine the viability of a potential Value-Added venture including feasibility studies, marketing strategies, business plans and legal evaluations. Working Capital Grants ($300,000 maximum) - to provide funds to operate ventures and pay the normal expenses of the venture including salaries, utilities, inventory, packaging, labels, and marketing expenses.
Rural Cooperative Development Grant Purpose: The Rural Cooperative Development Grant (RCDG) Program is intended to provide grant funds for establishing and operating Rural Cooperative Development Centers.
Rural Cooperative Development Grant Program Overview: Provides grant funds for establishing and operating Rural Cooperative Development Centers. Eligible applicants are non-profit organizations and institutions of higher learning. Required matching funds equaling 25 percent of total project costs. Maximum grant size $175,000
Rural Cooperative Development Grant Development Activities: Startup, expansion or operational improvement of a cooperative. Development activities include technical assistance, and research, educational, and advisory services. Operational improvement includes making a cooperative more efficient or better managed.
Examples of FY2012 Award Recipients California Center for Cooperative Development, in Davis, CA will use grant funds to support an existing Center for Cooperative Development in rural areas of California and Lincoln County Nevada. Projects include farmer, worker, and food cooperative development and education programs. The University of Nebraska in Lincoln, NE will used an RCDG award to support an existing Center that will assist rural Nebraska businesses in forming Cooperatives. The Center will offer technical assistance to businesses who are developing or are considering the development of a cooperatively owned business. Services offered include needs assessments, planning assistance to development groups, identifying resources needed, feasibility studies, market analysis, business plans and membership needs and priorities. Virginia Foundation for Agriculture, Innovation & Rural Sustainability in Richmond, VA, will use grant funds to support an existing Center, the Cooperative Development Center, that will serve rural areas in Virginia, West Virginia, Kentucky, Tennessee, Maryland and North Carolina. The Center will facilitate and coordinate technical and financial assistance to advance agricultural economic development by assisting in the formation and growth of cooperative businesses.
Rural Business Opportunity Grant Program Purpose: 1.Promote sustainable economic development that uses local resources 2.Assist rural communities with identifying their needs and taking advantage of available resources and opportunities 3.Focus assistance on priority communities 4.Sponsor “best practice” economic development activities that are transferable
Rural Business Opportunity Grant Eligible Applicants: Public bodies (e.g. state and local governments) Nonprofit corporations Indian tribes Cooperatives with members that are primarily rural residents Institutions of higher education
Rural Business Opportunity Grant Eligible Use of Funds: Identifying and analyzing business opportunities that will use local resources Providing training to entrepreneurs and managers Establishing business support centers Conducting leadership training Note: Grant funds may not be used to buy or develop real estate or for construction.
Alliances and Partnerships Community Banks and Commercial Lenders Local Utilities Community Development Financial Institutions (CDFI) Other Federal Agencies—SBA, EDA, Commerce, etc. Universities and Community Colleges Local/Regional Councils of Government and Regional Planning Commissions Community Action Agencies County and local community and economic development organizations
Web Links USDA Rural Development www.rurdev.usda.gov www.rurdev.usda.gov Rural Business-Cooperative Service www.rurdev.usda.gov/rbs www.rurdev.usda.gov/rbs Rural Area Eligibility – www.rurdev.usda.gov/rbs www.rurdev.usda.gov/rbs
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider, employer, and lender.