USDA RD Our Mission To increase economic opportunity and improve the quality of life for all rural Americans
USDA - Rural Development Rural Business / Cooperative Programs Business Finance-Nine Programs
Business and Industry Guarantee For starting or expanding rural businesses and cooperatives Reduces risk to lenders and raises their lending limits Guarantees to local lenders 80% up to $5 million 70% up to $10 million 60% up to $25 million
Business and Industry Guaranteed Loans Loans are Made by Eligible Lenders Uses of loans: –Equipment –Construction –Working capital –Refinancing in Certain Situations
Provides Grants to: Public Bodies (Cities) Non-Profits, Tribes All Serving Rural Areas Rural Business Enterprise Grant (RBEG) Grants can finance small and emerging private businesses and cooperatives, provide technical assistance or fund a revolving loan program Commonly requests are $99,000 or less have higher priority
Rural Business Opportunity Grants (RBOG) Eligible applicants: tribes, nonprofits, public bodies Purposes: –Identify and analyze business opportunities –Provide TA to existing or prospective entrepreneurs –Conduct local or multi-county Econ. Dev. Planning –Conduct leadership training –Pay for professional services for planning or training. Priority scoring: Applications under $50,000
Zero Percent Interest Loans may be made to RUS Borrowers (Electric or phone Coops) Supplemental Funding of at Least 20% of the Zero Percent Interest Loan is Needed $740,000 Maximum Loan Rural Economic Development Loan
Revolving Loan Fund (RLF) Established by Electric or Telephone Coop Funding for Community / Medical Facilities and Education Facilities $300,000 Maximum Per Project Rural Economic Development Grant
Value Added Producer Grants (VAPG) Eligible: Individuals, LLC, LLP, For-Profits, or Non- Profits that are owned or controlled by Ag Producers Deadline to be announced soon (60 day window to submit applications) Planning Grant $100,000 Working Capital $300,000. There is a $1 to $1 match requirement Must be a change in the physical state of the product
Changes to VAPG Provide up to 10 % funding to beginner farmers and socially disadvantaged farmers and ranchers; Provide up to 10 % funding to local and/or regional supply networks that link producers with companies marketing their products; Give priority for grants to beginner farmers, socially disadvantaged farmers and ranchers, and operators of small and medium-sized family farms; Extend grant eligibility to producers who market their products within their state or within a 400-mile radius.
Sec. 9007: Rural Energy for America Program (REAP) Grants and Loan Guarantees for Rural Small Businesses, Farmers and Ranchers
Renewable Energy and Energy Efficiency Improvement Purchase renewable energy systems (A system that produces or produces and delivers usable energy from a renewable energy source) Energy Efficiency Improvements (Improvements to a facility or process that reduce energy consumption)
REAP Program Overview REAP– Cost Sharing –The amount of the grant shall not exceed 25% of the eligible cost of the activity funded. –The combined loan and grant made or guaranteed shall not exceed 75% of the eligible cost of the activity funded. –Only post-application costs eligible.
What Small Businesses are Eligible? A private entity including a sole proprietorship, partnership, corporation, & cooperative Citizenship Visit http://sba.gov/size/index.html for meeting the size definition.http://sba.gov/size/index.html –NOTE: Public or private non-profits are not eligible.
What Agricultural Producers Are Eligible? Must directly engage in production of agricultural products. At least 50% of gross income must be from agriculture production. Citizenship.
Solar Powered Stock Tanks in the Powder River Basin: A Renewable Energy System for Livestock Producers Solar Energy Wind Energy
Geothermal – Direct Use A system that uses thermal energy directly from a geothermal source –At high temperatures, can directly heat water or buildings –At lower temperatures, temperature difference between earth and air can heat and cool buildings
Blender Pumps APPLICANT ELIGIBILITY The applicant must be a rural small business or agricultural producer. For gasoline service stations with convenience stores, applicants must have total income of $27 million or less in the previous tax year. Total income is defined as gross receipts less cost of goods sold. Current on all Federal debts. PROJECT ELIGIBILITY The project must be for the purchase and installation of a renewable flexible fuel blender pump system (such as mid-range ethanol blends or E85).
Application Deadlines We encourage applicants to file early. For renewable energy system and energy efficiency improvement grant applications and combination grant and guaranteed loan applications: June 15, 2011. For renewable energy system and energy efficiency improvement guaranteed loan only applications: June 15, 2011 For renewable energy system feasibility study and energy audits and assistance applications: June 30, 2011. FY11 $61 million for Guarantees/ $42 million for Grants Contact Rural Development office nearest you to start the application process and get a firm bid!
Intermediary Relending Program Eligible applicant: Nonprofits, Tribes, public agencies Purpose: Start a revolving loan fund Rates & Terms – 1% for 30 years to the intermediaries and they relend Deadline to apply: Quarterly
Rural Microentrepreneur Assistance Program (RMAP) RMAP’s goal is to help new & existing rural microentrepreneurs by providing funds to development organizations for microlending and technical assistance
RMAP Loans to capitalize revolving microloan funds Grants for microlenders to assist their applicants & borrowers and to build their own capacity