July 25, 2019 USDA Rural Development Mission Helping to improve the - - PowerPoint PPT Presentation

Missouri Main Street Connection Downtown Revitalization Conference July 25, 2019

USDA – Rural Development Mission

“Helping to improve the economy and quality of life in rural America.”

USDA Overview

United States Department of Agriculture ➢ 17 Agencies ➢ Rural Development is one of those agencies ➢ Within RD there are 3 divisions

✓Rural Business and Cooperative Service ✓Rural Housing Service ✓Rural Utility Service

➢ RD delivers over 40 programs to rural communities ➢ All programs fall within the administrative oversight of one the three divisions listed above

Data Analytics

Business Center

Innovation Center

States and Programs

Partnerships

Regulations Management

Innovation Center

Working together to develop fresh, creative solutions – Innovate

Policy and Trend Analysis Drive synergies by promoting collaboration across agencies Rural community capacity building

Population Guidelines

Business Programs: 50,000 and below (some program exceptions for local food projects) Community Programs: 20,000 and below Housing Programs: 35,000 and below Water and Waste Water Programs: 10,000 and below

Business and Industry (B&I) Guaranteed Loans

Program Purpose: Bolsters the existing private credit structure through the guaranteeing of loans for rural businesses, allowing private lenders to extend more credit than they would typically be able. Who May Apply: Lenders with legal authority, sufficient experience, and financial strength to operate a successful lending program. Eligible borrowers: For-profit business, nonprofits and cooperatives, federally-recognized tribes and public bodies Loan guarantee limits: 80% for loans of $5 million or less 70% for loans between $5 and $10 million 60% for loans exceeding $10 million, up to $25 million maximum Terms: Interest rate negotiated between lender and borrower, subject to Rural Development review. Real estate – 30 years, machinery and equipment -15 years and working capital – 7 years. Initial guarantee fee of 3% with annual renewal fee of 0.5% on outstanding principal.

Business and Industry (B&I) Guaranteed Loans

Funded Project Examples: $276,000 to refinance hotel $1,650,000 to refinance commercial building $1,000,000 to assist with expansion of restaurant $146,000 to purchase auto body collision repair business $1,445,000 to purchase and improve a fitness facility $327,000 to assist with refinancing an automotive repair and retail parts store $1,471,000 to assist with expansion of a restaurant and events center $3,015,000 to assist with the purchase of a retail furniture business $950,000 for financing construction of an events center $2,900,000 for financing expansion of residential care facility

Rural Business Development Grant (RBDG)

Program Purpose: Designed to support targeted technical assistance, training and other activities leading to development

• r expansion of small and emerging private businesses; separated into enterprise and opportunity

activities. Who May Apply: Public bodies, units of government and community-based non-profit organizations and Federally- recognized tribes Special Considerations: Eligible costs include real estate improvements, equipment, utility/infrastructure, feasibility studies, engineering services, and/or technical assistance to small businesses. Competitive application process Application Grant Request Limits: Grants less than $100,000 have highest competitive priority

Rural Business Development Grant (RBDG)

Funded Project Examples: $45,731 to assist city with street improvements $50,000 to improve parking areas to support small businesses $61,788 to expand community college nursing program $29,500 to provide technical assistance to small manufacturing businesses $36,300 for the purchase of commercial paper shredding equipment to support employment at a sheltered workshop $48,600 for the purchase of equipment for a food hub business $22,500 to purchase equipment for use in a recycling center $38,550 to assist with the purchase of equipment for a community theater and events building to support small business opportunities

Rural Business Development Grant (RBDG)

“We are so thankful to the USDA for their assistance with this project!” @MainStreetToccoa, Historic Ritz Theater in Toccoa, Georgia Rural Business Development Grant funded part of the latest wave of renovations at this beautifully restored historic theater that has been operational since 1939. Georgia State Office

Rural Economic Development Loans and Grants (REDLG)

Program Purpose: Assist economic and community development projects in rural areas. Who May Apply: Rural electric or telecommunications cooperatives Special Considerations: Real estate improvements, equipment, working capital Pass-through funding from cooperatives to ultimate beneficiary (community project) 20% Match Required from cooperatives Application Request Limits: Up to $1,000,000 Loan Up to $300,000 Grant Terms: All funds must be paid back to cooperative. Re-paid Grant may become Revolving Loan Fund for cooperative Re-paid Loan is paid to USDA – Rural Development Loan term is 0% for 10 years

Rural Economic Development Loans and Grants (REDLG)

Funded Project Examples: $800,000 Loan to construct new recreation facility $250,000 Loan to provide working capital to programs to assist residents with developmental disabilities $900,000 Loan to finance expansion of meat processing facility $500,000 Loan to construct new building at a regional port authority $1,000,000 Loan to construct new family theme park

Rural Energy for America Program (REAP)

Program Purpose: Assist rural small businesses and agricultural producers by providing renewable energy and energy efficiency project development assistance. Who May Apply: Farmers and rural small businesses Special Considerations: Grant is 25% of eligible project costs Application Grant Request Limits: $500,000 maximum for renewable energy projects $250,000 maximum for energy efficiency

Rural Energy for America Program (REAP)

Funded Project Examples: $20,000 Grant to assist fitness center with solar array energy system purchase $1,914 Grant to assist auto dealership with energy efficiency improvements $18,888 Grant to assist bank with purchase of solar array energy system $2,862 Grant to assist bed and breakfast with purchase and installation of energy efficiency improvements $12,707 Grant to assist upholstery and furniture repair business to purchase a solar array energy system $48,915 Grant to assist feed and fertilizer business with energy efficiency improvements $6,890 Grant to assist cabinet manufacturing business with energy efficiency improvements $27,623 Grant to assist grocery store with energy efficiency improvements $20,000 Grant to assist a hotel with purchase of a solar array energy system $20,000 Grant to assist a pharmacy with purchase of a solar array energy system

Intermediary Relending Program (IRP)

Program Purpose: Provides low-interest loans to local intermediaries that re-lend to businesses and nonprofits for community development projects in rural communities. Who May Apply: Public bodies, nonprofits, cooperatives and Federally-recognized tribes Limits to Intermediaries: Up to $2 million for first financing Up to $1 million at a time thereafter Total aggregate debt is capped as defined by funding notice. Terms for Intermediary: Interest rate is fixed at 1% Maximum term is 30 years Interest-only payments may be permitted for the first 3 years Recipient Loans: Maximum loan is $250,000; or 75% of total cost of recipient’s project for which loan is being made, whichever is less. Interest rate and term are set by intermediary.

Intermediary Relending Program (IRP)

Funded Project Examples: $500,000 Loan to continue a revolving loan fund, which will provide low-interest loans for small business and housing assistance. $500,000 Loan to provide low-interest loans to relend for business and community

• development. These funds will supplement an existing revolving loan fund in order to create

new job opportunities or retain existing jobs. $649,293 Loan to start a revolving loan fund, which will provide financing for small business for energy efficiency and renewable energy projects.

Value-Added Producer Grant (VAPG)

Program Purpose: Helps agricultural producers enter into value-added activities related to the processing and/or marketing

• f bio-based, value-added products. Generating new products, creating and expanding marketing
• pportunities and increasing producer income are the goals of this program.

Who May Apply: Independent producers, agricultural producer groups, farmer- or rancher-cooperatives and majority- controlled producer-based business ventures Eligible Uses: Grant and matching funds can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product. Examples of planning activities include conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product. Examples of working capital expenses include processing costs, marketing and advertising expenses and some inventory and salary expenses

Community Facility Grant/Loan Program

Program Purpose: Provides affordable funding to develop essential community facilities. Who May Apply: Public body, community-based, nonprofit organization or Federally-recognized tribes Special Considerations: Essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community. Does not include private, commercial or business undertakings. Provides direct loans, loan guarantees and grants. Loan term: lesser of useful life of facility, state statutes, applicant’s authority or 40 years. Interest rate: currently 3.5% for direct loan. Established by lender under loan guarantee. Loan guarantee maximum is 90% with a one-time guarantee fee of 1%. Application Grant Request Limits: Grants for up to 15%, 35%, 55% or 75% of proposed project depending upon population and MHI of proposed service area.

Community Facility Grant/Loan Program

Funded Project Examples: $2,685,400 Loan to finance new building for chamber of commerce and visitor’s center. $462,200 Loan and $7,800 Grant to construct new fire station. $35,000 Grant to purchase equipment for a community theater as part of renovations. $2,700,000 Loan to construct new city hall and police station. $15,600 Grant to replace kitchen appliances and equipment in a community nutrition center. $23,600 Loan and $21,400 Grant to purchase an existing building for expansion of city hall. $27,500 Grant to update and modernize county library branches. $6,400 Grant to replace school cafeteria equipment.

Economic Impact Initiative (EII) Grant Program

Program Purpose: Provides funding to assist in the development of essential community facilities in rural communities with extreme unemployment and severe economic depression. Who May Apply: Public body, community-based, nonprofit organization and Federally-recognized tribes. Special Considerations: Essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community. Grants may made in combination with other Rural Development financial assistance. Community facilities may include: healthcare, public facilities, public safety and local food systems.

Economic Impact Initiative (EII) Grant Program

Funded Project Examples: $8,300 Grant to purchase equipment to outfit new fire truck. $17,600 Grant to assist with the purchase of four-wheel drive police vehicle. $17,775 Grant to purchase replacement cab chassis for a fire rescue unit, new self-contained breathing apparatus and related fire rescue equipment. $6,800 Grant to purchase a used police vehicle. $11,900 Grant to purchase an early warning storm siren. $8,700 Grant to purchase two police SUVs. $5,235 Grant to purchase first responder equipment.

Rural Community Development Initiative (RCDI) Grant

Program Purpose: Provide technical assistance and training funds to qualified, intermediary organizations to develop their capacity to undertake housing, community facilities, and community and economic development projects. Who May Apply: Public bodies, nonprofit organizations and Federally-recognized tribes. Eligible Uses: Training sub-grantees; for example, home-ownership or minority business entrepreneur education. Technical assistance such as strategic plan development, board training, effective fundraising techniques. Application Grant Request Limits: $50,000 minimum award $250,000 maximum award Matching funds equal to the amount of the grant award

Water and Waste (Water) Disposal Grant/Loans

Program Purpose: Provides funding for drinking water systems, sanitary sewage disposal, sanitary solid waste disposal and storm water drainage. Who May Apply: Most state and local governmental entities, private nonprofits and Federally-recognized tribes Funding Available: Long-term, low-interest loans. If funds are available, a grant may be combined with a loan. Loan Term: 35-year payback period, based on the useful life of the facilities financed with a fixed interest rate. Application Grant Request Limits: Grant must be needed to establish financial feasibility. Depending upon availability, grants for up to 45% or 75% of total project costs depending upon MHI

• f service area.

Single Family Housing 502 Direct Loan Program

Program Purpose: Provides assistance to low- and very-low-income applicants to obtain decent, safe and sanitary housing in eligible rural areas. Who May Apply: Applicants must meet income eligibility for a direct loan. Applicants must be without decent, safe and sanitary housing. Applicants must be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet. Applicants must have the legal capacity to incur a loan obligation. Eligible Uses: Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Terms: Fixed Interest Rate, currently 3.5%. No down payment and up to 33-year payback period

Single Family Housing 502 Loan Guarantee Program

Program Purpose: Assists approved lenders in providing low- and very-low-income households the opportunity to

• btain decent, safe and sanitary housing in eligible rural areas.

Who May Apply: Applicants must meet income eligibility. Applicants must purchase a home which meets program criteria. Applicants must have the legal capacity to incur a loan obligation. Eligible Uses: Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Terms: Provides a 90% loan note guarantee to approved lenders to reduce risk

Single Family Housing 504 Loan/Grant Program

Program Purpose: Provides loans to very-low-income homeowners to repair, improve, or modernize their homes or provides grants to elderly very-low-income homeowners to remove health and safety hazards. Who May Apply: Homeowner and occupant of the house Homeowner must be unable to obtain affordable credit elsewhere Homeowner must have a family income below 50 percent of the area median income For grants, homeowner must be age 62 or older and not be able to repay a repair loan Eligible Uses: Loans may be used to repair, improve, or modernize homes or to remove health and safety hazards. Grants must be used to remove health and safety hazards.

Housing Preservation Grant (HPG) Program

Program Purpose: Provides grants to sponsoring organizations for the repair or rehabilitation of housing occupied by low- and very-low-income families and individuals. Who May Apply: State and local government entities, nonprofit organizations and Federally-recognized tribes Individual homeowners are not eligible Eligible Uses: Home must be in a rural area or community under 20,000 population Repairing or replacing electrical wiring, foundations, roofs, insulation, heating systems, water/waste disposal systems Handicap accessibility features Labor and materials

Distance Learning and Telemedicine (DLT) Grant

Program Purpose: Program helps rural communities acquire the technology and training necessary to connect educational and medical professionals with the teachers and medical providers who serve rural residents at the local level. Who May Apply: State and local governmental entities, Federally-recognized tribes, nonprofit organizations, for-profit businesses and consortia of eligible entities. Eligible Uses: Grant funds may be used for: audio, video and interactive video equipment, broadband facilities that support distant learning or telemedicine, computer hardware, network components and software, acquisition of instructional programming and acquisition of technical assistance and instruction for using eligible equipment. Grant requirements? Awards can range from $50,000 to $500,000 A minimum 15 percent match is required and cannot be from another federal source.

Community Connect Grant

Program Purpose: Program offers financial assistance to eligible applicants that will construct broadband networks that provide service on a community-oriented connectivity basis in rural areas. Who May Apply: State and local governments, Federally-recognized tribes, nonprofits, for-profit corporations and limited liability companies Eligible Uses: The construction, acquisition, or leasing of facilities, spectrum, land or buildings used to deploy broadband service for: all residential and business customers located within the Proposed Funded Service Area and all participating essential community facilities (such as public schools, fire stations, public libraries, and public safety stations). The cost of providing broadband service free of charge to the essential community facilities for 2 years. Up to 10 percent of the grant may be used for the improvement, expansion, construction, or acquisition

• f a community center that provides online access to the public.

Missouri State Office Contact

Missouri State Office Jeff Case, State Director jeffrey.case2@usda.gov 601 Business Loop 70 West Parkade Center, Suite 235 Columbia, MO 65203 (573) 876-0976

Greg Batson, PhD Community Solutions Specialist Innovation Center – Partnership Team USDA – Rural Development (573) 876-9304 gregory.batson@usda.gov