1. Rural Communities Broadband Roundtable
October 24, 2013

2. USDA Rural Development
U.S. Department of Agriculture agency
Develop economic opportunity and improve the quality of life in rural areas
Administer community, business and housing programs
Provide assistance through
Grants, loans and loan guarantees
Includes individual homes, apartment complexes, renewable energy projects, business start-ups and expansions, and public projects such fire stations, village halls, water and sewer systems

3. Organization Administer more than 20 programs in New York
Three major program areas
Community
Housing
Business
National Programs administered through regional General Field Representatives (GFRs) and our National Rural Development office
Includes telecommunications, utilities , Distance Learning and Telemedicine
As noted on the earlier slide, Rural Development administers more than 20 different grant, loan and loan guarantee programs in New York. Most of our programs are administered within our three larger program areas of Housing, Business and Community Programs. Technically, each program is legally still a service and you’ll sometimes see them referred to as the Rural Housing Service, Rural Utilities Service and Rural Business Service.
This slide lists our major programs. I won’t read each of them to you because I’ll go into them in depth over but will point out the National Programs bullet at the bottom. Several Rural Development programs are administered directly by our national office and this includes telecommunications, which is going to play a major role in administering broadband funds. Other major national programs are Utilities

4. Community Facilities Program
Overview

5. Community Facilities Facilities can include:
Health care clinics, hospitals, nursing homes, Schools, child care centers, head start centers, classrooms and dormitories
Police and fire stations, fire trucks, rescue vehicles, jails, communication centers
City/town/village halls, community centers, homeless shelters, food banks, sidewalks, libraries, museums, courthouses, street improvements

6. Community Facilities
Applicants must be a municipality, non-profit organization, or Native American Tribe.
Facilities must be located in rural areas with a population of less then 20,000 residents
Applicants must be unable to obtain commercial credit at “reasonable rates and terms”
Municipalities must go through the Bond Resolution process.

7. Community Facilities
Applicants may apply for grant assistance on a graduated scale, based on the MHI, population, and funding availability.
Grants are limited to the minimum amount needed for economic feasibility of the project.
Direct loan funds may be used to pay 100% of the project cost. These include: construction, legal council, bond council, architect/engineering, construction inspection, etc.

8. Community Facilities
Interest rates are a fixed rate with a term of the “useful life” of the facility
Loans are secured by General Obligation Bonds for municipalities or collateral for a non-profit.
Current Interest Rates are:
Market rate: %
Intermediate rate: %
Poverty rate: 4.500%

9. Municipal Buildings

10. New Rescue Vehicle

11. Animal Shelter

12. New Rescue Building

13. New Home for NP Organization

14. New Health Center

15. Libraries

16. Fire Trucks

17. Museums

18. Any Questions

19. Business Programs
Overview

20. Rural Business Programs
Business & Industry Guarantee B & I
Rural Business Enterprise Grant RBEG
Intermediary Relending Program IRP
Rural Energy for America Program REAP
Rural Business Opportunity Grant RBOG
Value Added Producer Grant VAPG
Rural Economic Development Loans and Grants REDLG
Rural Cooperative Development Grant RCDG

21. Business & Industry Guarantee (B&I)
create jobs and stimulate rural economies by providing financial backing for the rural businesses
Applicant is the banks customer, the bank is our customer
Business applies through a Federal or State Chartered bank, credit union, or other approved lenders
Can be used for acquisition, start-up, and expansion of businesses
Applications must be filed through an eligible lender (pre-applications are recommended)

22. Rural Economic Development Loans and Grants REDLG
Applicant must be Electric Cooperatives & Rural Telephone Companies
Provides zero interest loans and grants to rural communities through Rural Utilities Services (RUS) borrowers.
Purpose is for Business startup or expansion projects that create rural jobs

23. Rural Cooperative Development Grant Program (RCDG)
You must be a non-profit corporation or an institution of higher education
Grant funds may be used to pay for the cost of establishing and operating centers for rural cooperative development
Used for technical assistance for improving the economic conditions of rural areas through the development of new cooperatives and improving operating of existing cooperatives.
The grant will cover 75% of the cost
Maximum grant amount is $200,000

24. Example of a RCDG recipient
The Cooperative Development Institute (CDI) has successfully applied for operating funds for many years from the RCDG program.
CDI serves New England and New York as a technical assistance and training provider for new and existing coops
Link to their website at , or reach them by phone at (877-NE-COOPS) or by at

25. Contacts www.rurdev.usda.gov/ny State Office (315) 477-6400
Stanley Telega – State Director
Titus Falkenburg – Community Programs Director
Dave Schermerhorn – Business Programs Director
Canton Local Office (315) ext.4
Renee Hotte – Lead Area Specialist