U.S Government – Freely Associated States Working Group Coordination Meeting March 20, 2015 Chris J. Kanazawa, State Director USDA Rural Development Hawaii/Western Pacific/American Samoa

REGION OF RESPONSIBILITY State of Hawaii Guam Commonwealth of the Northern Mariana Islands American Samoa Federated States of Micronesia Republic of the Marshall Islands Republic of Palau

RURAL DEVELOPMENT PROGRAMS Over 40 Grant, Direct and Guaranteed Loan and Technical Assistance Programs Rural Housing Programs Community Programs Rural Utilities Programs Rural Business and Cooperative Programs Rural Energy Programs Providing Access to Capital and Credit for Rural Communities

Success Stories in the Federated States of Micronesia Housing $464,200 in loans and grants for renovations and rehabilitations to improve health and sanitary conditions for 34 families. Community Facilities Grants $35,000 Yap Division Public Safety – Solar street lighting. $41,250 Pohnpei security fencing project for Lukop school and community center. $50,000 Kosrae Woman’s Association Day Care Center. Value Added Producers Grant $9,340 Kosrae farm for product packaging and labeling.

Success Stories in the Republic of Palau Housing Since 2013, $399,130 in single family housing loans for 6 families. Since 2010, $461,000 in housing renovation and rehabilitation to improve health and sanitary conditions for 69 families. Community Economic Development Roundtable Event Engagement of key stakeholders to have a discussion on priority factors in strengthening community’s economy. Development of a tailored strategy to address needs specific to Palau.

Success Stories for the Republic of the Marshall Islands Housing Mutual Self Help Housing - $540,000 in financial assistance to enable to 9 families achieve first time homeownership. Since 2005, $1.2 million in technical assistance and $4.5 million in home construction for 91 families achieve homeownership. Since 2010, $622,429 for renovation and rehabilitation to improve health and sanitary conditions for 71 families with low and very low household incomes. High Energy Cost Grant $1.0 million assistance to Marshall Energy Company.

Challenges in Delivery of Programs in the FAS Financial Capacity and Literacy Capacity building and technical assistance grants. Undisbursed Grant Funds Identifying resources to meet “matching” requirements. Land Tenure – Lack of Collateral Establishment of Cash Collateral Escrow Account. Limited Intermediaries Strengthening technical capacity of local NGOs.

Capacity Building Programs Rural Business Enterprise Grant Rural Business Opportunity Grant Rural Energy For America Program Value Added Producers Grant Small Socially Disadvantaged Producers Grant Rural Community Development Initiative Intermediary Relending Program

USDA RURAL DEVELOPMENT MISSION “Improving the quality of life and increasing economic opportunities in rural communities”