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USDA Rural Development California

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Presentation on theme: "USDA Rural Development California"— Presentation transcript:

1 USDA Rural Development California
Introduction & Overview April 21, 2015 Karen Firestein Program Director Business & Cooperatives Programs USDA Rural Development California

2 Why are we here? RD’s vision is to maximize our program benefits to support a rural America that is a healthy, safe, and prosperous place to live and work. Find the USDA Rural Development Strategic Plan for here:

3 How do we work? Rural Development uses over 40 loan and grant programs to create opportunities in housing, business, and infrastructure. We serve as a catalyst to improve conditions in rural America by offering technical assistance and increasing the flow of capital through leveraged partnerships. Successful rural economic development requires collaboration, cooperation and coordination with local leaders, public and private sector partners, and educational institutions. Find the USDA Rural Development Strategic Plan for here:

4 What do we do? Find the USDA Rural Development Strategic Plan for here: Pictured: Cherryvale, KS. We are a federal agency that makes loans and grants to protect and preserve the livelihood of rural communities across the United States.

5 Rural Development Programs
Rural Utilities Service Rural Housing & Community Facilities Rural Business & Cooperative Service Electric Program Water & Environmental Programs Telecommunications and Broadband Programs Homeownership Loans Home Repair Loans & Grants Mutual Self-Help TA Grants Multi-Family Housing Loans Housing Preservation Grants Community Facilities Loans & Grants Programs Business and Industry Guaranteed Loans Rural Business Development Grants Intermediary Relending Program Rural Energy for America Program Advanced Biofuel Payment Program Value Added Producer Grants Cooperative Development Assistance

6 Rural Development Funding Streams
Types of Funding Guaranteed Loans Direct Loans Grants Direct Payments

7 What is our impact on rural America?

8 Annual Funding $973 Million FY 2014 FY 2013 $1.2 Billion $998 Million

9 Total Funding in FY2014: $973 Million
Single Family Housing $725 Million Community Programs $52 Million Business & Cooperatives $70 Million Multi-Family Housing $126 Million

10 Business & Cooperatives
Programs Community Programs Single Family Housing Business & Cooperatives Multi-Family Housing

11 Business & Cooperatives

12 What is the mission of Business & Cooperatives?
To create and save rural jobs To improve the economic and environmental climate of rural communities Business & Cooperatives

13 Beneficiaries of Our Programs
Individuals Corporations Cooperatives Partnerships Other public/private for-profit/non-profit legal entities Federally recognized Indian tribes Generally, an applicant may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. Individual borrowers must be citizens of the United States (U.S.) or reside in the U.S. after being legally admitted for permanent residence. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. Business & Cooperatives

14 Business & Cooperatives Programs
Business Programs Business & Industry Loan Guarantees Intermediary Relending Program (IRP) Rural Microentrepreneur Assistance Program (RMAP) Rural Business Development Grants (RBDG) Business & Cooperatives

15 Business & Cooperatives Programs
Energy Programs Rural Energy for America Program (REAP) Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program Advanced Biofuel Payment Program Repowering Assistance Program Business & Cooperatives

16 Business & Cooperatives Programs
Value-Added Producer Grants (VAPG) Small Socially-Disadvantaged Producer Grant (SSDPG) Rural Cooperative Development Grants (RCDG) Most Business & Cooperatives programs apply to cooperative organizations, but the second two listed here are limited only to cooperatives. Find a complete list of programs eligible for cooperative applicants here: Business & Cooperatives

17 Funding Opportunities
Business & Industry Loan Guarantees (B&I) Guarantees loans by eligible lenders to rural businesses Maximum $10-$25 million per borrower One-time guarantee fee of 3% Real estate: 30 year term Chattel: 15 year term Working capital: 7 year term Guarantees of varying percentages available depending on loan size Business & Industry Loan Guarantees are made by eligible lenders to rural businesses and work to improve, develop, or finance business industry and employment. A borrower must be engaged in a business that will provide employment, promote the use of water for aquaculture, and reduce reliance on nonrenewable energy resources. Funds may be used for business and industrial acquisitions, construction, conversion, expansion, repair, modernization, or development costs; purchase of equipment, machinery, supplies, or inventory; start-up costs and working capital; processing and marketing facilities’ pollution control and abatement; purchase of land, easements, rights-of-way, buildings, or facilities. Eligible Purposes for Business & Industry Loan Guarantees: Loan purposes must be consistent with the general purpose contained in the regulation. They include but are not limited to the following: Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities. Business conversion, enlargement, repair, modernization, or development. Purchase and development of land, easements, rights-of-way, buildings, or facilities. Purchase of equipment, leasehold improvements, machinery, supplies, or inventory. Find out more about this loan program here: For information in California, contact the state office: Karen Firestein, Program Director (530) Dibakar Barua, BCP Specialist (530) Maretta Siatunuu, BCP Specialist (530) Lee Takikawa, BCP Specialist (559) x134 For local office information, contact your nearest Rural Development California field office: Dan Johnson, Bakersfield (661) Debbie Coggins, Eureka (707) x107 Tammy Laizure, Oroville (530) x131 Dibakar Barua Rick Sturtevant, Salinas (831) Al Correale, Santa Maria (805) x119 Business & Cooperatives

18 Funding Opportunities
Intermediary Relending Program (IRP) Recipients are nonprofit, public agency, tribal or cooperative intermediaries Ultimate beneficiaries are small businesses promoting rural community economic development 1% interest rate Maximum loan to ultimate beneficiary is $150,000 or 75% of project cost The Intermediary Relending Program (IRP) supports loans for smaller and emerging businesses, and business facilities in order to promote community economic development in rural areas. Borrowers are intermediaries and may include private nonprofit corporations, public agencies, American Indian tribes or cooperatives. Intermediaries must have legal authority to carry out the proposed loan purposes and to incur and repay the debt and have a record of successfully assisting rural business and industry, normally including experience in making and servicing commercial loans. They must also be located in an eligible area of 50,000 or less. All loan funds received by intermediary must be re-loaned to ultimate recipients. Loans from intermediaries to recipients must be for the establishment of new businesses; expansion of existing businesses; creation of employment opportunities; or saving of existing jobs. For community development projects, some examples of eligible projects are the purchase or development of land, pollution control and abatement, transportation services, feasibility studies, hotels, motels, and convention centers. Eligible Purposes for the Intermediary Relending Program: IRP funding may be used for a number of purposes but to be eligible, ultimate recipients must be located in a rural area. Under the IRP, a rural area is any area that is not inside a city with a population of 50,000 or more according to the latest decennial census. Some examples of eligible projects are: The acquisition, construction, conversion, enlargement, or repair of a business or business facility, particularly when jobs will be created or retained. The purchase or development of land (easements, rights of way, buildings, facilities, leases, materials) To purchase equipment, leasehold improvements, machinery, supplies Start up costs and working capital Pollution control and abatement Transportation Services Feasibility studies Hotels, motels, B&Bs, convention centers Find more information about this revolving loan program here: For California, contact the state office: Karen Firestein, Program Director (530) Dan Johnson, Area Specialist (661) x127 Business & Cooperatives

19 Funding Opportunities
Rural Microentrepreneur Assistance Program (RMAP) Loans and grants to microenterprise development organizations Ultimate beneficiaries must have 10 or fewer full-time employees Up to $50,000 loans for ultimate recipients or 75% of project cost Grants require 15% match The Rural Microentrepreneur Assistance Program (RMAP) provides loans and grants to microenterprise development organizations (MDO) for microlending and technical assistance to support the development of microentrepreneurs and microenterprises. Microenterprise development organizations are nonprofit, American Indian tribes, or institutions of higher learning. End recipients should be located in a rural area with a population less than 50,000 and have 10 or less full time employees. Microlenders providing fixed interest rate microloans to rural microentrepreneurs for startup and growing microenterprises may receive up to $500,000 in loans. “TA Grants” provide technical assistance and training to eligible microentrepreneurs and microenterprises. The applicant is eligible for 25% of the first $400,000 loaned to microborrowers and 5% of all additional loans. “TA-Only Grant” can be provided to eligible MDOs that seek to provide business-based technical assistance and training to eligible microentrepreneurs and microenterprises. (Entities receiving microlending TA Grants will not be eligible to apply for TA-Only grants). The maximum loan limit is $500,000. Microlenders are eligible for Technical Assistance grants based upon outstanding microloans under this program. Maximum Technical Assistance Only Grants depend on availability of funds. RMAP loans cannot provide more than 75% of the project cost. RMAP grants require a 15% match (which can be matching funds, indirect costs, or in-kind goods or services). Eligible Purposes for the Rural Microentrepreneur Assistance Program: RMAP funding may be used to provide fixed interest rate microloans to rural microentrepreneurs for startup and growing microenterprises. Eligible MDOs will be automatically eligible to receive microlender technical assistance grants to provide technical assistance and training to microentrepreneurs that have received or are seeking a microloan under RMAP. Technical assistance-only grants (for technical assistance and training) may be made to MDOs that have sources of funding other than RMAP funds for making or facilitating microloans. Find out more about this loan and grant program here: For California, contact the state office: Karen Firestein, Program Director (530) Dan Johnson, Area Specialist (661) x127 Business & Cooperatives

20 Funding Opportunities
Rural Energy for America Program (REAP) Guaranteed Loans & Grants (9007) Min $5,000 / Max $25 million loan guarantee Project Types: Renewable Energy System (RES) 25% of project cost/$500,000 maximum grant Energy Efficiency Improvement (EEI) 25% of project cost/$250,000 maximum grant The Rural Energy for America Program (REAP) (Section 9007) funds energy efficiency projects (such as bioenergy, geothermal, hydrogen, solar, wind and hydro-power) that typically involve installing or upgrading equipment to significantly reduce energy use. Applicants may include farmers, ranchers and rural small businesses. The applicant must be the owner of the system and control the operation and maintenance of the proposed project. A qualified third-party operator may be used to manage the operation and/or for maintenance of the proposed project. Non-profit organizations and public entities are excluded. Projects must be located in an eligible area of 50,000 or less. The following items must be an integral and necessary part of the total project: equipment, except agricultural tillage equipment and vehicles; post-application construction or project improvements, except residential; energy audits or assessments; permit fees; professional service fees, except for application preparation; business plans; and retrofitting. A new facility may be constructed only when the facility is used for the same purpose, is approximately the same size, and based on the energy audit will provide more energy savings than improving an existing facility. Only costs identified in the energy audit for energy efficiency projects are allowed. The total input from a nonrenewable energy source for necessary and incidental requirements of the energy system will be determined by the technical reviewer. All projects must be based on satisfactory sources of revenues in an amount sufficient to provide for the operation and maintenance of the system or project. For a grant, project must be for the purchase of a renewable energy system or to make energy efficiency improvements; pre-commercial or commercially available and replicable technology, not for research and development; and technically feasible. The REAP program will move from using a Notice of Funding Availability (NOFA) to a Notice of Solicitation of Applications (NOSA) as of The NOSA will alert potential applicants that the program will be accepting applications at a later date; therefore, actual program funding levels and requirements will be announced some time after the NOSA. This process is intended to allow potential applicants more time to prepare strong applications. Eligible applicants may include farmers, ranchers and rural small businesses. The applicant must be the owner of the system and control the operation and maintenance of the proposed project. A qualified third-party operator may be used to manage the operation and/or for maintenance of the proposed project. Non-profit organizations and public entities are excluded. Find out more information about the guaranteed loan and grant program here: Eligible Purposes for the Rural Energy for America Program: Eligible project costs for Renewable Energy Systems and Energy Efficiency Improvements are: Post-application purchase and installation of equipment (new, refurbished, or remanufactured), except agricultural tillage equipment, used equipment, and vehicles Post-application construction or improvements, except residential Energy audits or assessments Permit and license fees Professional service fees, except for application preparation Feasibility studies and Technical Reports Business Plans and Retrofitting Construction of a new energy efficient facility only when: the facility is used for the same purpose; is approximately the same size; and, based on the energy audit, will provide more energy savings than improving an existing facility. Only costs identified in the energy audit for energy efficiency improvements are allowed. New equipment as long as it is of similar size to the equipment being replaced Working capital (applicable for guaranteed loan only) Land acquisition (applicable for guaranteed loan only) For California, contact the state office: Karen Firestein, Program Director (530) Steven Nicholls, Energy Coordinator (530) Guadalupe Valdes, Area Specialist (209) ext. 119 Business & Cooperatives

21 Funding Opportunities
REAP Energy Audit (EA) and Renewable Energy Development Assistance (REDA) Grant (9007) To assist agricultural producers and small businesses by conducting energy audits Maximum grant $100,000 Find out more about this program here: **Eligible applicants for the EA and REDA programs differ from the REAP funds for Renewable Energy Systems or Energy Efficiency Improvements. Eligible applicants for EA and REDA include a unit of State, Tribal, or local government; instrumentality of a State, Tribal, or local government; institution of higher education; rural electric cooperative; a public power entity; or a council, as defined in 16 U.S.C The recipient of a grant fund will establish a program to assist agricultural producers and rural small businesses with evaluating the energy efficiency and the potential to incorporated renewable energy technologies into their operations. For California, contact the state office: Karen Firestein, Program Director (530) Steven Nicholls, Energy Coordinator (530) Guadalupe Valdes, Area Specialist (209) ext. 119 Business & Cooperatives

22 Funding Opportunities
Rural Business Development Grant (RBDG) Established under the 2014 Farm Bill Designed to assist in the development of small and emerging private businesses and/or nonprofits in rural communities Consolidation of Enterprise Grant (RBEG) and Opportunity Grant (RBOG) programs with no substantive changes Business & Cooperatives

23 Funding Opportunities
Rural Business Development Grant (RBDG) May be used for technical assistance, job training and other economic development activities Up to 10% of authorized funds may be used for “opportunity type grant” related activities Includes set-asides for REAP Zones, Federally Recognized Tribes, and Rural Transportation Business & Cooperatives

24 Funding Opportunities
Rural Business Development Grant (RBDG) More than $28 million available nationally Eligible applicants include public bodies, nonprofits and Tribes Must demonstrate a successful history of administering economic development and technical assistance programs Business & Cooperatives

25 Funding Opportunities
Rural Business Development Grant (RBDG) Contact a local Rural Development office for more details and how to apply Applications for Native American set-aside funds due by 4 PM on May 4, 2015 All other applications due June 19, 2015 Rural Business Development Grants are a consolidation of Rural Business Enterprise Grants (RBEG) and Rural Business Opportunity Grants (RBOG) as part of the 2014 Farm Bill. RBDG is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have less than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into enterprise or opportunity type grant activities. Rural public entities are eligible to apply. RBDG funds must be directed for projects benefitting rural areas or towns outside the urbanized periphery of any city with a population of 50,000 or more. Eligible purposes for the Rural Business Development Grant: Enterprise type grant funds must be used on projects to benefit small and emerging businesses in rural areas as specified in the grant application. Uses may include: Training and technical assistance, such as project planning, business counseling/training, market research, feasibility studies, professional/technical reports, or product/service improvements Acquisition or development of land, easements, or rights of way; construction, conversion, renovation, of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities Pollution control and abatement Capitalization of revolving loan funds including funds that will make loans for start-ups and working capital Distance adult learning for job training and advancement Rural transportation improvement Community economic development Technology-based economic development Feasibility studies and business plans Leadership and entrepreneur training Rural business incubators Long-term business strategic planning Opportunity type grant funding must be used for projects in rural areas and they can be used for: Find more information about this grant program here: For California, contact the state office: Karen Firestein, Program Director (530) Dibakar Barua, BCP Specialist (530) Maretta Siatunuu, BCP Specialist (530) Local Offices: Alturas Office: Serving Lassen, Plumas and Modoc Counties Mike Colbert, Area Specialist (530) ext. 112 Bakersfield Office: Serving Inyo, Kern, Los Angeles, Orange, Riverside and San Bernardino Counties Dan Johnson, Area Specialist (661) El Centro Office: Serving Imperial and San Diego Counties Daniel Cardona, Area Specialist (760) ext. 107 Eureka Office: Serving Del Norte and Humboldt Counties Debbie Coggins, Area Specialist (707) ext. 107 Fresno Office: Serving Fresno and Kings Counties Lee Takikawa, BCP Specialist (559) ext. 134 Merced Office: Serving Alpine, Calaveras, Madera, Mariposa, Merced, Mono, San Joaquin, Stanislaus and Tuolumne Counties Guadalupe Valdes, Area Specialist (209) ext. 119 Oroville Office: Serving Butte, Colusa, El Dorado, Glenn, Nevada, Placer, Shasta, Sierra, Sutter, Tehama, Trinity, Yolo and Yuba Counties Tammy Laizure, Area Specialist (530) ext. 131 Salinas Office: Serving Alameda, Contra Costa, Monterey, San Benito, San Francisco, San Mateo, Santa Clara and Santa Cruz Counties Rick Sturtevant, Area Specialist (831) ext. 130 Santa Maria Office: Serving San Luis Obispo, Santa Barbara and Ventura Counties Al Correale, Area Specialist (805) ext. 119 Santa Rosa Office: Serving Lake, Marin, Mendocino, Napa and Sonoma Counties Reef Atwell, Area Specialist (707) ext. 103 Quinn Donovan, Area Specialist (707) ext. 105 Visalia Office: Serving Tulare County Lisa Butler, Area Specialist (559) ext. 103 Yreka Office: Serving Siskiyou County Kevin DeMers, Area Specialist (530) ext. 112 Business & Cooperatives

26 Funding Opportunities
Rural Business Development Grant (RBDG) Established under the 2014 Farm Bill Designed to assist in the development of small and emerging private businesses and/or nonprofits in rural communities Consolidation of Enterprise Grant (RBEG) and Opportunity Grant (RBOG) programs with no substantive changes Rural Business Development Grants are a consolidation of Rural Business Enterprise Grants (RBEG) and Rural Business Opportunity Grants (RBOG) as part of the 2014 Farm Bill. RBDG is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have less than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into enterprise or opportunity type grant activities. Rural public entities are eligible to apply. RBDG funds must be directed for projects benefitting rural areas or towns outside the urbanized periphery of any city with a population of 50,000 or more. Eligible purposes for the Rural Business Development Grant: Enterprise type grant funds must be used on projects to benefit small and emerging businesses in rural areas as specified in the grant application. Uses may include: Training and technical assistance, such as project planning, business counseling/training, market research, feasibility studies, professional/technical reports, or product/service improvements Acquisition or development of land, easements, or rights of way; construction, conversion, renovation, of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities Pollution control and abatement Capitalization of revolving loan funds including funds that will make loans for start-ups and working capital Distance adult learning for job training and advancement Rural transportation improvement Community economic development Technology-based economic development Feasibility studies and business plans Leadership and entrepreneur training Rural business incubators Long-term business strategic planning Opportunity type grant funding must be used for projects in rural areas and they can be used for: Find more information about this grant program here: For California, contact the state office: Karen Firestein, Program Director (530) Dibakar Barua, BCP Specialist (530) Maretta Siatunuu, BCP Specialist (530) Local Offices: Alturas Office: Serving Lassen, Plumas and Modoc Counties Mike Colbert, Area Specialist (530) ext. 112 Bakersfield Office: Serving Inyo, Kern, Los Angeles, Orange, Riverside and San Bernardino Counties Dan Johnson, Area Specialist (661) El Centro Office: Serving Imperial and San Diego Counties Daniel Cardona, Area Specialist (760) ext. 107 Eureka Office: Serving Del Norte and Humboldt Counties Debbie Coggins, Area Specialist (707) ext. 107 Fresno Office: Serving Fresno and Kings Counties Lee Takikawa, BCP Specialist (559) ext. 134 Merced Office: Serving Alpine, Calaveras, Madera, Mariposa, Merced, Mono, San Joaquin, Stanislaus and Tuolumne Counties Guadalupe Valdes, Area Specialist (209) ext. 119 Oroville Office: Serving Butte, Colusa, El Dorado, Glenn, Nevada, Placer, Shasta, Sierra, Sutter, Tehama, Trinity, Yolo and Yuba Counties Tammy Laizure, Area Specialist (530) ext. 131 Salinas Office: Serving Alameda, Contra Costa, Monterey, San Benito, San Francisco, San Mateo, Santa Clara and Santa Cruz Counties Rick Sturtevant, Area Specialist (831) ext. 130 Santa Maria Office: Serving San Luis Obispo, Santa Barbara and Ventura Counties Al Correale, Area Specialist (805) ext. 119 Santa Rosa Office: Serving Lake, Marin, Mendocino, Napa and Sonoma Counties Reef Atwell, Area Specialist (707) ext. 103 Quinn Donovan, Area Specialist (707) ext. 105 Visalia Office: Serving Tulare County Lisa Butler, Area Specialist (559) ext. 103 Yreka Office: Serving Siskiyou County Kevin DeMers, Area Specialist (530) ext. 112 Business & Cooperatives

27 Eligible Areas Business & Cooperatives
Applicants must be located in towns with populations less than 50,000 for most programs. Generally, applications are available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns. Find out if you are eligible for funding using the USDA Income & Property Eligibility Site: Business & Cooperatives

28 Business & Industry Loan Guarantees
Case Studies Business & Industry Loan Guarantees

29 El Pajaro Community Development Corporation
B&I Loan Guarantee $2,200,000 Applicant –Purchase Real Estate $66,000 Applicant – LH/Tenant Improvements $335,000 Applicant – FF&E $120,000 Other $400,000 Local bank requested a Business & Industry Loan Guarantee for a $2,200,000 loan to purchase real estate and cover associated loan fees and costs for El Pajaro Community Development Corporation. The organization started a Commercial Kitchen Incubator Program (CKIP) in 2011 to reach out to potential food entrepreneurs in the food business sector and to promote and foster the creation of sustainable food businesses. They negotiated a master lease agreement with the owners of an 8,000 sq. ft. building that had sat vacant for seven years. As of August 2014, at least 15 tenants occupied the building. Business & Cooperatives

30 Hotel Business & Cooperatives Hotel Purchase $350,000
Working Capital $150,000 Fees & Costs $106,000 B&I Loan $3,900,000 A Business & Industry loan guarantee was used to purchase an existing 39-room, two- and three-story exterior corridor hotel for $4,100,000, with the owners injecting over a half million dollars toward the purchase. With this purchase, 9 jobs were retained and 2 were immediately created. Business & Cooperatives

31 Renewable Energy for America Program (REAP)
Case Studies Renewable Energy for America Program (REAP)

32 GroundTrac Solar Panels
Agricultural Producer: Jelly’s Ferry Orchard in Red Bluff, CA Finance Structure: $43,146 REAP Grant $129,438 Applicant $172,584 Total Project Costs A REAP grant was used to build ground-mounted 95,644 kWh (annually) solar panels to power the electric turbine motor of an agricultural well for Jelly’s Ferry Orchard in Red Bluff, CA. The panels were calculated to provide about 87% of the annual electricity for the well. There are two applicant types in the REAP program, agricultural producer and rural small business. This agricultural producer was able to save energy costs in the irrigation of orchards and fields by installing a new solar panel Renewable Energy System. Business & Cooperatives

33 Roof-Mounted Solar Panels
Rural Small Business: Nolind’s Pioneer Auto Body & Shipping in Oroville, CA Finance Structure $20,000 REAP grant $150,000 Bank Loan $4,768 CSI rebate $89,878 Total Project Costs A REAP grant was used to build a roof-mounted, 41,000 kWh solar system that was calculated to replace 82% of the electricity being used by the applicant, Nolind’s Pioneer Auto Body & Shipping in Oroville, CA. There are two applicant types in the REAP program, agricultural producer and rural small business. This rural small business was able to save energy costs by producing electricity from a new solar panel Renewable Energy System to power equipment and machinery in their auto repair shop. Business & Cooperatives

34 Rural Business Enterprise Grants (RBEG)
Case Studies Rural Business Enterprise Grants (RBEG)

35 Southern California Focus on Cooperation
RBEG $55,000 Applicant $18,000 The Southern California Focus on Cooperation received a $55,000 Rural Business Enterprise Grant to provide training, outreach and development for a new worker cooperative called the Green Broom Brigade, located in Lompoc, CA. Funds were also used to plan for a new center for cooperative development. Business & Cooperatives

36 California State University, Fresno Foundation
RBEG $50,000 Applicant $51,000 CSU Fresno Foundation received a $50,000 Rural Business Enterprise grant to provide a technical assistance training for the “Orange Cove Emerging Small Businesses” program series to help address chronic poverty and unemployment through small business support. Business & Cooperatives

37 West Hills Community College District
RBEG $99,500 Applicant $50,000 *Hosting the “Apps for Ag” Hackathon at the Farm of the Future on April 17-19, 2015 $99,500 in RBEG funds were used to provide on-the-job vocational training within the transportation (trucking) and renewable energy (solar installation) industries for unemployed or underemployed adults living in rural communities on the west side of Fresno County that have been adversely affected by the recent California drought through job loss or imminent job loss. This project created 125 new jobs. For more information on the Apps for Ag Hackathon, visit

38 Community Programs

39 What is the mission of Community Programs?
To strengthen infrastructure To support basic needs of food and water To address essential needs of education and health care To meet necessary needs of access to cultural and recreational opportunities Community Programs

40 Beneficiaries of Our Program
Nonprofit Organizations that are broadly based and have significant community support Indian Tribes Public Bodies – including cities, counties and special districts Mutual Water Companies Public Bodies include: Counties, Cities, Towns, or Other Political Subdivision Special-Purpose Districts Such as Hospitals, Schools, Fire Districts Indian Tribes Indian Tribes include: Federally Recognized Tribes Non-federally recognized tribes that are organized as a non-profit Tribes that are served by a public body Nonprofit Organizations also include association, corporations or cooperatives. Community Programs

41 Community Programs Community Programs Water and Sewer Infrastructure
Water and Waste Disposal Loan and Grant Emergency Community Water Assistance Grants Colonias Tribal Community Facilities Loans, Grants and Guarantees Community Programs

42 Community Programs Community Programs
Rural Community Development Initiative Telecommunications including: Broadband Distance Learning Telemedicine Telephone Service Electric Rocky Chenelle (530) Rural Community Development Initiative (RCDI) Grants: These grants are intended to improve housing, community facilities, and community and economic development projects in rural areas. Rural Community Development Initiative grants may be used for, but are not limited to, training sub-grantees to conduct home-ownership education; minority business entrepreneur education; providing technical assistance to sub-grantees on; strategic plan development; accessing alternative funding sources; board training; developing successful child care facilities; creating training tools, such as videos, workbooks, and reference guides; and effective fundraising techniques. Broadband: USDA Rural Development provides loans and loan guarantees for the costs of construction, improvement, and acquisition of facilities and equipment to provide broadband service to eligible rural communities. Distance Learning/Telemedicine: The Distance Learning and Telemedicine program helps rural communities use the unique capabilities of telecommunications to connect to each other and to the world, overcoming the effects of remoteness and low population density. For example, this program can link teachers and medical service providers in one area to students and patients in another. Telephone Service: This program provides financing for the construction, maintenance, improvement and expansion of telephone service and broadband in rural areas. Electric: Rural Development’s electric programs provide leadership and capital to upgrade, expand, maintain, and replace America's vast rural electric infrastructure. Under the authority of the Rural Electrification Act of 1936, the Electric Programs make direct loans and loan guarantees to electric utilities to serve customers in rural areas. The loans and loan guarantees finance the construction of electric distribution, transmission, and generation facilities, including system improvements and replacement required to furnish and improve electric service in rural areas, as well as demand side management, energy conservation programs, and on-grid and off-grid renewable energy systems. Loans are made to corporations, states, territories and subdivisions and agencies such as municipalities, people's utility districts, and cooperative, nonprofit, limited-dividend, or mutual associations that provide retail electric service needs to rural areas or supply the power needs of distribution borrowers in rural areas. For more information on electric programs, contact the statewide coordinator: Rocky Chenelle (530) Community Programs

43 Funding Opportunities
Water and Waste Disposal Loan and Grant Program Low interest rates extend for up to 40 year loans Currently 2.25% % Grants are up to 75% of project cost Water and Environmental (WEP) Program Loans and Grants: Water and Environmental Programs (WEP) provides loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less. Eligible water systems improvements include those pertaining to groundwater and surface water supply, water treatment, water storage and water distribution. Eligible wastewater systems improvements include those pertaining to sewer collection, sewer treatment and effluent disposal. Eligible solid waste systems improvements include those pertaining to collection vehicles, recycling facilities and transfer stations. Public bodies, non-profit organizations and recognized Indian tribes may qualify for assistance. WEP also makes grants to nonprofit organizations to provide technical assistance and training to assist rural communities with their water, wastewater, and solid waste problems. Eligible Purposes for Water and Environmental Program (WEP) Loans and Grants: Water, sewer, solid waste and storm drainage systems, and both new and repair projects (for domestic and industrial users) are eligible for the following purposes: Construction Land acquisition Legal fees Engineering fees Capitalized interest Equipment Initial operation Maintenance costs Project contingencies To connect service lines to a residence Pay utility hook-up fees Find out more about the Water and Waste Disposal Loan and Grant Program here: For California, contact the state office: Anita Lopez, Program Director (530) Dave Hartwell, State Office Specialist (530) Frank Risso, CP Specialist (916) Pete Yribarren, CP Specialist (805) Christina Swegles, CP Specialist (760) Lantenna Hungate, CP Technician (530) Or contact your nearest local field office: Alturas Office: Serving Lassen, Modoc, Plumas, Shasta and Tehama Counties Mike Colbert, Area Specialist x112 Auburn Office: Serving Placer County Michael Velez, Area Specialist (530 ) x101 Bakersfield Office: Serving Inyo and Kern Counties Teresa Hogan, Area Specialist (661) x125 Davis Office: Serving Alameda, Colusa, Glenn, Monterey, San Benito, San Mateo, Santa Clara, Santa Cruz and Yuba Counties Katie Schmitt, Area Specialist (530) El Centro Office: Serving Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties Daniel Cardona, Area Specialist (760) x107 Luis Andrade, Area Specialist x108 Elk Grove Office: Serving El Dorado, Nevada, Placer, Sacramento, Sierra, Solano and Yolo Counties Doug Colucci, Area Specialist (916) x106 Fresno Office: Serving Fresno County Sally Tripp, Area Specialist (559) x132 Antonio Ybarra x4 Manteca Office: Serving Alpine, Amador, Calaveras, Contra Costa, Mono and San Joaquin Counties Merced Office: Serving Madera, Mariposa, Merced, Stanislaus and Tuolumne Counties Deborah Cartwright, Area Specialist (209) x124 Jose Guardado, Area Specialist (209) Oroville Office: Serving Butte, Colusa, Glenn and Sutter Counties Colleen Crowden, Area Specialist (530) x123 Santa Maria Office: Serving San Luis Obispo, Santa Barbara and Ventura Counties Al Correale, Area Specialist (805) x119 Santa Rosa Office: Serving Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, San Francisco and Sonoma Counties Reef Atwell, Area Specialist (707) x103 Quinn Donovan, Area Specialist x105 Visalia Office: Serving Kings and Tulare Counties Lisa Butler, Area Specialist (559) x103 Yreka Office: Serving Siskiyou and Trinity Counties Kevin Demers, Area Specialist (530) x112 Community Programs

44 Funding Opportunities
Community Facilities Direct and Guaranteed Loans 3 interest rate levels: poverty, intermediate, market Guarantees up to 90% of any loss of interest or principal on the loan Term may not exceed applicant’s authority, useful life of facility, or maximum of 40 years Community Facilities Loans, Grants and Guarantees: Community Facilities Programs provide loans, grant and loan guarantees for essential community facilities in rural areas. Priority is given to health care, education and public safety projects. Typical projects are hospitals, health clinics, schools, fire houses, community centers and many other community based initiatives. Eligible Purposes for Community Facilities Direct Loan & Grants: Construct, enlarge or otherwise improve essential community facilities operated on a nonprofit basis. Examples include: Health care: hospitals, clinics, nursing homes, etc. Public safety: police/fire stations, rescue vehicles, communications centers Education: schools, pre-schools, child care centers, school buses, etc. Public services: city halls, courthouses, community centers, airports, libraries, homeless shelters, museums, animal shelters, etc. Transportation infrastructure: such as streets, roads, bridges, and natural gas distribution systems Industrial parks: land acquisition and site preparation only. Purchase of existing facilities to improve or prevent a loss of service Pay the following expenses: reasonable fees, costs and interest; costs of acquiring interest and rights in land; purchasing or renting equipment; or initial operating expenses Eligible Purposes for Community Facilities Guaranteed Loans: Construct, enlarge, extend or otherwise improve essential community facilities operated on a nonprofit basis such as: Fire, rescue, public safety, health Community, social or cultural services Transportation infrastructure: streets, roads, and bridges Facilities used primarily for recreation Purchase existing facilities to improve or prevent a loss of service Pay the following expenses: reasonable fees, costs and interests; costs of acquiring interest & rights in land; purchasing or renting equipment; or initial operating expenses Refinancing debt if the following exist: debts being refinanced are second daily part of loan (less than 50%); debts being refinanced were incurred for facility or service being currently financed; present creditors will not extend or modify terms of the existing debts to an acceptable rate Pay obligations for construction incurred before issuance of the Conditional Commitment (only in limited instances) Find out more about this loan program here: and For California, contact the state office: Anita Lopez, Program Director (530) Dave Hartwell, State Office Specialist (530) Pete Yribarren, CP Specialist (805) Lantenna Hungate, CP Technician (530) Or contact your nearest local field office: Alturas Office: Serving Lassen, Modoc, Plumas, Shasta and Tehama Counties Mike Colbert, Area Specialist x112 Auburn Office: Serving Placer County Michael Velez, Area Specialist (530 ) x101 Davis Office: Serving Alameda, Colusa, Glenn, Monterey, San Benito, San Mateo, Santa Clara, Santa Cruz and Yuba Counties Katie Schmitt, Area Specialist (530) El Centro Office: Serving Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties Daniel Cardona, Area Specialist (760) x107 Luis Andrade, Area Specialist x108 Elk Grove Office: Serving El Dorado, Nevada, Placer, Sacramento, Sierra, Solano and Yolo Counties Doug Colucci, Area Specialist (916) x106 Fresno Office: Serving Fresno County Sally Tripp, Area Specialist (559) x132 Antonio Ybarra x4 Manteca Office: Serving Alpine, Amador, Calaveras, Contra Costa, Mono and San Joaquin Counties Frank Risso, CP Specialist (916) Merced Office: Serving Madera, Mariposa, Merced, Stanislaus and Tuolumne Counties Deborah Cartwright, Area Specialist (209) x124 Jose Guardado, Area Specialist (209) Oroville Office: Serving Butte, Colusa, Glenn and Sutter Counties Colleen Crowden, Area Specialist (530) x123 Santa Maria Office: Serving San Luis Obispo, Santa Barbara and Ventura Counties Al Correale, Area Specialist (805) x119 Santa Rosa Office: Serving Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, San Francisco and Sonoma Counties Reef Atwell, Area Specialist (707) x103 Quinn Donovan, Area Specialist x105 Visalia Office: Serving Kings and Tulare Counties Lisa Butler, Area Specialist (559) x103 Yreka Office: Serving Siskiyou and Trinity Counties Kevin Demers, Area Specialist (530) x112 Community Programs

45 Funding Opportunities
Community Facilities Grants Grants are up to 75% of project cost Priority points for: Small communities: population is ≤ 5,000 Low-income communities: MHI is below the higher of the poverty line or 60% of California’s non-metropolitan MHI Healthcare, public safety, or public and community services Eligible Purposes for Community Facilities Direct Loan & Grants: Construct, enlarge or otherwise improve essential community facilities operated on a nonprofit basis. Examples include: Health care: hospitals, clinics, nursing homes, etc. Public safety: police/fire stations, rescue vehicles, communications centers Education: schools, pre-schools, child care centers, school buses, etc. Public services: city halls, courthouses, community centers, airports, libraries, homeless shelters, museums, animal shelters, etc. Transportation infrastructure: such as streets, roads, bridges, and natural gas distribution systems Industrial parks: land acquisition and site preparation only. Purchase of existing facilities to improve or prevent a loss of service Pay the following expenses: reasonable fees, costs and interest; costs of acquiring interest and rights in land; purchasing or renting equipment; or initial operating expenses Find out more about this grant program here: For California, contact the state office: Anita Lopez, Program Director (530) Dave Hartwell, State Office Specialist (530) Pete Yribarren, CP Specialist (805) Lantenna Hungate, CP Technician (530) Or contact your nearest local field office: Alturas Office: Serving Lassen, Modoc, Plumas, Shasta and Tehama Counties Mike Colbert, Area Specialist x112 Auburn Office: Serving Placer County Michael Velez, Area Specialist (530 ) x101 Davis Office: Serving Alameda, Colusa, Glenn, Monterey, San Benito, San Mateo, Santa Clara, Santa Cruz and Yuba Counties Katie Schmitt, Area Specialist (530) El Centro Office: Serving Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties Daniel Cardona, Area Specialist (760) x107 Luis Andrade, Area Specialist x108 Elk Grove Office: Serving El Dorado, Nevada, Placer, Sacramento, Sierra, Solano and Yolo Counties Doug Colucci, Area Specialist (916) x106 Fresno Office: Serving Fresno County Sally Tripp, Area Specialist (559) x132 Antonio Ybarra x4 Manteca Office: Serving Alpine, Amador, Calaveras, Contra Costa, Mono and San Joaquin Counties Frank Risso, CP Specialist (916) Merced Office: Serving Madera, Mariposa, Merced, Stanislaus and Tuolumne Counties Deborah Cartwright, Area Specialist (209) x124 Jose Guardado, Area Specialist (209) Oroville Office: Serving Butte, Colusa, Glenn and Sutter Counties Colleen Crowden, Area Specialist (530) x123 Santa Maria Office: Serving San Luis Obispo, Santa Barbara and Ventura Counties Al Correale, Area Specialist (805) x119 Santa Rosa Office: Serving Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, San Francisco and Sonoma Counties Reef Atwell, Area Specialist (707) x103 Quinn Donovan, Area Specialist x105 Visalia Office: Serving Kings and Tulare Counties Lisa Butler, Area Specialist (559) x103 Yreka Office: Serving Siskiyou and Trinity Counties Kevin Demers, Area Specialist (530) x112 Community Programs

46 Funding Opportunities
Rural Broadband Access Loans & Guarantees Map existing and proposed service coverage areas Not accepting applications until new Farm Bill 2014 regulation is published Broadband: USDA Rural Development provides loans and loan guarantees for the costs of construction, improvement, and acquisition of facilities and equipment to provide broadband service to eligible rural communities. Eligible Purposes for Rural Broadband Access Loans/Loan Guarantees (Broadband): Construction, improvement, and acquisition of facilities Cost of leasing facilities Refinance obligations on another telecommunications loan made under Rural Electrification Act Pre-loan expenses associated with loan application Find out more about this loan program here: For more information, contact the Broadband Coordinators for California: Rocky Chenelle, General Field Representative | Robert Tse, CA Broadband Coordinator | Community Programs

47 Funding Opportunities
Distance Learning Telemedicine Grants are for up to100% of project cost Notice of Funds Availability (NOFA) announced annually in Federal Register Minimum 15% match Awards range from $50,000 to $500,000 Distance Learning/Telemedicine: The Distance Learning and Telemedicine (DLT) Grant Program is specifically designed to assist rural communities in acquiring distance learning and telemedical technologies so that local teachers and medical service providers who serve rural residents can establish interactive video conferencing links to teachers, medical professionals, and other needed expertise located at distances too far to access otherwise. This video connection links the rural students, rural patients, and rural residents needing various services directly to the source of services needed in their communities, with the local service providers as intermediaries and beneficiaries. Entities providing education and medical care via telecommunications including corporations or partnerships, Indian tribes or tribal organizations, state or local units of government, consortia, and private for-profit or not-for profit corporations. Individuals are not eligible. DLT 100% grant applications are accepted through a competitive process. The application window is announced annually (typically after the first of the year) through a Notice of Funds Availability (NOFA) in the Federal Register. Applicants are required to provide a minimum 15 percent match. Awards can range from $50,000 to $500,000. Eligible Purposes for the Distance Learning and Telemedicine Program (DLT): Capital and hardware costs that will enhance telecommunication capabilities such as: Audio, video, terminal equipment Computer hardware and software Instructional programming Technical assistance and instruction for using equipment Find out more about this grant program here: This program is administered nationally. Contact the national representative in California: Rocky Chenelle, General Field Representative | Community Programs

48 Funding Opportunities
Community Connect Grant Improvement, construction, acquisition, or leasing of facilities used to deploy broadband service Cost of providing necessary bandwidth for service free of charge to Critical Community Facilities for 2 years Minimum: $100,000 Maximum: $3,000,000 Eligible Purposes for the Community Connect Grant Program: Grant funds may be used to finance the following: The construction, acquisition, or leasing of facilities, including spectrum, land or buildings, used to deploy service at the Broadband Grant Speed to all residential and business customers located within the Proposed Funded Service Area (PFSA) and all participating Critical Community Facilities, including funding for up to 10 Computer Access Points to be used in the Community Center. Buildings constructed with grant funds must reside on property owned by the awardee. Leasing costs will only be covered through the advance of funds period included in the award documents; The improvement, expansion, construction, or acquisition of a Community Center and provision of Computer Access Points. Grant funds for the Community Center will be limited to 10% of the requested grant amount or $150,000. If a community center is constructed with grant funds, the center must reside on property owned by the awardee; and The cost of providing the necessary bandwidth for service free of charge to the Critical Community Facilities for 2 years. Find out more about this grant program here: This program is administered nationally. Contact the national representative in California: Rocky Chenelle, General Field Representative | Community Programs

49 Eligible Areas Community Programs
Applicants must be in or outside a city, town or census-designated place with populations under 10,000 for Water Programs and 20,000 for Community Facilities. Applicants must be: Unable to Obtain Credit From Other Sources Possess Financial, Technical, and Managerial Abilities to Comply with Federal and State Laws and Requirements Legal Authority & Responsibility: applicant must have legal authority to own to Construct, Own, Operate, and Maintain facility and Giving security for, and repaying proposed loan. Economic Feasibility: revenue from assessment and fees must be sufficient to provide for facility operation and maintenance, reasonable reserves, and debt repayment. Reasonable User Costs for Rural Residents and Rural Businesses On EDU Basis Community Programs

50 Water & Environmental Programs
Case Studies Water & Environmental Programs

51 City of Woodlake Community Programs WEP Loans $17,479,000
WEP Grants $5,821,000 CF Loans $3,177,100 CF Grants $154,100 Over the past seven years, the city of Woodlake has received $4,338,100 in grants and $18,337,100 in loans from Rural Development California to purchase police vehicles and fire engines, build a new wastewater treatment facility and replace old water tanks, and even build a new community health clinic: 2007: loan of $2 million to replace a 500,000-gallon water tank, water main line and disinfection system 2007: loan of $13,116,000 and a grant of $4,184,000 to construct a new wastewater treatment facility to process 1.28 million gallons per day of activated sludge, including anoxic treatment for nitrogen removal, evaporation-percolation ponds and available land disposal, and lined-bed aerobic sludge treatment; the project also included replacing 6-inch collection lines with 10- inch lines in a section of Naranjo Blvd. and replacing a connective joint on an 18-inch trunk sewer line 2008: grant of $46,200 to purchase three police vehicles 2008: loan of $120,000 and a grant of $50,000 to purchase a fire engine and equipment 2010: loan of $3 million to construct and equip a new 10,571 sq. ft. clinic that will feature 18 exam rooms, nine dental rooms, laboratory, dispensary area, conference room, break room, staff offices, equipment room, IT area, behavioral health and other services for the community 2013: loan of $57,100 and grant of $57,900 to purchase a mini-pumper fire engine 2014: loan of $2.363 million and grant of $1.637 million to install water meters in every home and business Community Programs

52 Case Studies Public Services

53 Community Programs Grant $100,000
Desert Alliance Community Empowerment (DACE) Portable Toilet and Showers Grant $100,000 Desert Alliance Community Empowerment in the Coachella Valley received a $100,000 Community Facilities grant to build a portable toilet and showers for migrant farm laborers to use during the work day on the farm. Community Programs

54 Questions? Visit Our New Website
The Quick Reference Guide lists the relevant details and contact information for California Rural Development’s most popular programs. It also includes a helpful table showing what kinds of applicants are eligible for each program. Visit Our New Website

55 Contact Us at the State Office
Business & Cooperatives Single Family Housing Karen Firestein, Program Director Ron Tackett, Program Director (530) (530) Community Programs Multi-Family Housing Anita Lopez, Program Director Stephen Nnodim, Program Director (530) Find out if your project is eligible for a Rural Development funding opportunity by exploring the resources on the USDA’s Income and Property Eligibility site: Contact us at the State Office here: California State Office 430 G Street, Agency 4169 Davis, CA (530) | (530) fax Or contact one of our Field Offices in your area: Alturas Office 221 West 8th Street, Alturas, CA Phone: (530) | Fax: (530) Auburn Office 251 Auburn Ravine Rd, Ste. 107, Auburn, CA Phone: (530) x4 | Fax: (530) Bakersfield Office California Ave, Ste. 100, Bakersfield, CA Phone: (661) x4 | Fax: (661) El Centro Office 177 North Imperial Ave, El Centro, CA Phone: (760) x4 | Fax: (760) Elk Grove Office Dino Drive, Ste. 170, Elk Grove, CA Phone: (916) x4 | Fax: (916) Eureka Office South Broadway, Ste. 170, Eureka, CA Phone: (707) x4 | Fax: (707) Fresno Office W Jennifer St, Ste. 126, Fresno, CA Phone: (559) x4 | Fax: (559) Indio Office Indio Boulevard, Ste. A Indio, CA Phone: (760) x4 | Fax: (760) Merced Office G Street, Ste. 100, Merced, CA Phone: (209) x4 | Fax: (209) Modesto Office Cornucopia Way, Ste. E, Modesto, CA Phone: (209) x4 | Fax: (209) Moreno Valley Office March Memorial Drive, Ste. 280, Moreno Valley, CA Phone: (951) | Fax: (951) Oroville Office 150-D Chuck Yeager Way, Oroville, CA Phone: (530) x4 | Fax: (530) Redding Office Avtech Parkway, Ste. A, Redding, CA Phone: (530) | Fax: (530) Salinas Office 744-A La Guardia Street, Salinas, CA Phone: (831) x4 | Fax: (831) Santa Maria Office 920 East Stowell Road, Santa Maria, CA Phone: (805) x4 | Fax: (805) Santa Rosa Office 777 Sonoma Ave, E St Annex, Santa Rosa, CA Phone: (707) x4 | Fax: (707) Visalia Office West Orchard Court, Visalia, CA Phone: (559) x4 | Fax: (559) Yreka Office 215 Executive Court, Ste. B, Yreka, CA Phone: (530) x4 | Fax: (530)

56 Contact Us! Karen Firestein BCP Program Director (530) 792-5825


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