Small Towns, BIG Futures Rural Developments Financial Toolkit One - - PowerPoint PPT Presentation

Small Towns, BIG Futures

Rural Development’s Financial Toolkit

Presented by Vince Paumier Community Economic Development Specialist

One USDA, Seven Mission Areas

• Farm & Foreign Agricultural Services
• Food, Nutrition & Consumer Services
• Food Safety
• Marketing & Regulatory Programs
• Natural Resources & Environment
• Research, Education & Economics
• Rural Development (highlighted for

emphasis)

USDA Ru Rural al D Develop

• pment’s

s Mi Mission

Rural Development’s Organizational Structure

• Rural Development
• Rural Business-Cooperative Service
• Rural Housing Service
• Rural Utilities Service

Rural Development at work in Ohio • Fiscal Year 2017

2017 Program Obligations Amount invested

Single Family Housing Direct Loan Program 252 More than $28.2 million Single Family Housing Repair Loans & Grants 272 More than 1.3 million Single Family Home Loan Guarantee Program 5,345 Nearly $603 million Single Family Housing Self-Help Technical Assistance Grants 1 $600,000 Multi-Family Housing Loan Guarantee Program 2 $2 million Multi-Family Housing Rural Rental Housing Direct Loans 6 More than $1.8 million Multi-Family Housing Rental Assistance Program 10,023 units Nearly $33 million Multi-Family Housing Preservation Grants 3 $140,952 Community Facilities Direct Loan, Loan Guarantees, & Grant Program 56 More than $88 million Water & Waste Disposal Loan & Grant Program 30 Nearly $94 million Business & Industry Loan Guarantee Program 14 More than $39 million Rural Development Business Grants | Intermediary Relending Program 12 More than $1.2 million Rural Energy for America Program 38 More than $5.4 million Rural Utilities Service Electric Program 5 More than $45.7 million

OHIO TOTALS: 6,036 More than $943 million

Rural Development’s Programs

Rural Housing Service

Rural Housing Service

Singl ngle-Family ily Ho Hous using ng

• No Down Payment
• 100 Percent

Affordable Fixed Rate Financing

Single-Family Housing

• Closing Costs and Repairs

may be included

• No Private Mortgage

Insurance (PMI)

• No Prepayment Penalties

Rural Housing Service

Example: Single Family Housing Direct Loan

• Family of three
• Annual adjusted gross income = $24,000
• Other debt = $250 / month
• Home purchase $120,000
• 1 percent interest rate
• Monthly payment = $356, plus $200 in taxes and

insurance = $556 /month This family qualifies for a $120,000 home

• n an annual income of $24,000!

Rural Housing Service • Multi-Family Housing

Pike C Coun unty:

• $1.5 million Guaranteed Rural

Housing loan

• More than $10.5 million total funding
• Nearly 100 affordable rental units

renovated and preserved La Lawren ence ce C Cou

• unty

ty:

• $600,000 Guaranteed Rural

Housing loan

• $6.4 million total funding
• 60 affordable rental units

renovated and preserved

Rural Housing Service • Single Family Home Repair Loans and Grants

• Access for persons with disabilities
• Roofs and septic tanks
• Energy-saving upgrades, and more.

Rural Housing Service • Community Facilities

Community ty F Faci ciliti ties

• Hospitals, health clinics
• Schools
• Daycares
• Fire houses, first responder

vehicles and equipment

• Community centers and

more.

The Community Facilities Program at work in Ohio

Ohio Northern University College of Engineering

• $67.2 million Community

Facilities loan

• New construction: 109,500

square-foot building

• Remodel of existing College
• f Engineering

Rendering: www.onu.edu/front/building_impact

The Community Facilities Program at work in Ohio

A $344,000 C

Community Facilities es l loan an combined with a $238,000 Co Community F Facilities es gra rant financed the purchase of a ladder fire truck for the City of Upper Sandusky in Wyandot

County. The refurbished truck replaced an older, smaller model that outlasted its useful life. The new ladder truck will provide nearly 6,600 Upper Sandusky residents with enhanced fire protection.

The Rural Community Development Initiative Grant at work in Ohio

A $250, $250,000 000 Rur ural Communi nity De ty Development Ini nitiative Grant has given Sandusky County’s WSOS Community Action Commission an opportunity to assist 11 rural communities in three Midwest states. WSOS is using Global Positioning Systems (GPS) and Geographic Information Systems (GIS) to build databases documenting the locations of vital utility infrastructure. Once completed, the databases will improve the

• perational and management efficiencies of utilities in

New London and Russell’s Point, Ohio; Beaverton, Capac, Cheboygan, Farwell, Lake Odessa, and Olmstead, Michigan, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians of Wisconsin, and the Menominee Indian Tribe of Wisconsin.

Rural Business-Cooperative Service

Rural Business-Cooperative Service

Bus Business P Program ams

Busines ness & & Indus dustry Lo Loan G Guarantees

• Convert, enlarge, repair,

modernize, or develop business

• Purchase and develop land,

easements, rights-of-way, buildings, or facilities

Rural Business-Cooperative Service

Busines ness & & Indus dustry Lo Loan G Guarantees

• Purchase equipment, machinery,

supplies, or inventory

• Refinance when new jobs will be

created and other conditions are met

Rural Business-Cooperative Service

Business & Industry Loan Guarantees

• Acquire businesses and

industries when the loan will keep the business from closing and/or save or create jobs.

Rural Business-Cooperative Service

The Business & Industry Loan Guarantee Program at work in Ohio

A t two-generation family business, McElroy Contract Packaging has manufactured corrugated b boxes in rural North Central O Ohio for nearly 4 40 years. The company’s focus on short-run, specialized p packaging allows i it to thrive i in a market saturated with manufacturers that cater t to Am Amazon a and other mega-shippers. A A $1 million Rural Development Business and Industry l loan is being used to purchase an exi xisting 3 30,000 square foot building in Orrvi ville, w while an additi tional $925,120 Business and Industry loan guarantee w will be used t to finance the purchase o

• f equipment a

and refinance debt.

Energy P Programs

• Repowering Assistance

Program

• Rural Energy for America

Program (REAP)

• Energy Audits & Renewable

Energy Development Grants

• Renewable Energy Systems &

Energy Efficiency Improvement Loans & Grants

Rural Business-Cooperative Service

REA EAP

Rural Business-Cooperative Service

• Install energy efficient lighting
• Upgrade refrigeration systems
• Improve insulation, duct work,

windows, and make other building upgrades

• Lower heating and cooling costs with

heating, ventilation, and air conditioning upgrades

• Install solar panels or wind turbines
• Purchase anaerobic digesters

The Rural Energy for America Program at work in Ohio

A $19,845 Rural En

Energy gy f for

• r A

America P Prog

• gram gr

grant

helped finance the installation of a solar photovoltaic system at Athens County-based Devil’s Kettle Brewing. The solar panels are expected to generate about 36,600 kilowatt hours of electricity, supporting award-winning Brewmaster Cameron Fuller’s vision for a world-class brew system and sustainable, self-reliant taproom in which to showcase it.

Co Coope perative Programs

Rural Business-Cooperative Service

The Rural Business Development Grant Program at work in Ohio

A A $99,967 Rural Business Development Grant i is being u used t to help fund a technical assistance program called “Retail is Detail.” This program p provi vides t technical assistance to businesses in five r rural Ohio communities: : As Ashland, Ravenna, Wellington, Sidney, and Xenia, offering help with topics s such a as defining business purpose and mission, finding the right product / service mix, x, m managing inventory, store d design and merchandising, , signage, e-commerce, staffing, marketi ting, k key financial ratios, and other d details small retailers m must t address to compete s successfu fully. . Collecti tively, , th the f five c counti ties located in th the area th the grant t serves – Ashland, d, Portage, Lorain, n, S Shelby, and G Greene –pay annual retail employee salaries about 9 9 percent lower than the s statewide average. The grant is exp xpected to help create or save 28 jobs a and assist 15 rural businesses.

The Rural Business Development Grant Program at work in Ohio

A $72, $72,388 388 Ru Rural B Business ss De Development Gr Grant t is bei eing used ed f for i inves estm tment planning, partner ership coor

• ordination
• n a

and e equipmen ent i installation

• n a

at Athen ens’ C County’s A Appal alac achian an Center er f for Econ

• nom
• mic Networks (

(ACEn Enet). The R e RBDG p proj

• jec

ect focuses es o

• n t

two c

• cluster

ers wi within ACEnet's t targeted ed s sector

• rs: w

wood

• dworker

ers and c custom w wood m manufactu turers, s, a and m mea eat p t processo ssors a s and l lives estock producers. s. The f funds w s will a allow e existi ting en entrepreneurs s and ten enants s to e expand their b businesse sses, s, increase se a annual s sales, es, diver ersi sify m market c t channels, s, retain a and c crea eate jobs, s, a and m more effecti tively s sec ecure res esources f s from other s support t agen encies, s, ed educators a s and access ss to capital loans a s and eq equi uity i investm tment. t. The gr grant i is expe pected t to hel elp c crea eate 27 27 jobs s and assist t 18 18 rural b businesse sses. s.

Rur Rural U Utilities es Ser Servi vice ce

Rural Utilities Service

Electr ctric P c Progr grams

The Rural Electric Program at work in Ohio

Borrower and County: Type Amount invested

Darke (County) Rural Electric Cooperative Loan Guarantee $6.1 million Lorain-Medina (Counties) Rural Electric Cooperative Loan Guarantee $9.4 million Logan County Cooperative P&L Association Loan Guarantee $4.29 million Hancock-Wood (Counties) Electric Cooperative Loan Guarantee $25 million NOPEC, Inc. (Direct Rural Energy Savings Program) Relending $1 million

OHIO TOTALS: $45.79 million

Telec ecommuni nications ns Programs

Rural Utilities Service

Water er an and Envi vironm

• nmen

ental Programs

Rural Utilities Service

Water er an and W Was aste e Dispo posal al L Loans ns and nd Grants s

• Improve infrastructure
• Support public health and

safety or

• Promote economic

development.

Rural Utilities Service

The Water & Environmental Program at work in Ohio

A $28.8 million Water a and Waste Disposal loan and grant combination is financing the c construction o

• f a

a wastewater collecti ction system i in n Athens ns County ty’s U U.S. 50 50 Albany y corridor. The area s suffers from failing o

• n-site

te w wastewate ter t tre reatment systems, placing the h health o

• f about 1,170 rural residents at risk

and c creating an envi vironmental h hazard a along the s scenic Hocking River. r. Lack of a modern rn, centralized wastewater r treatment system also stym tymies r regional r residential a and c commercial d development. . Once c completed, the new s system will help protect the health th of Al Albany corridor r residents, improve the water quality of the Hocking River, and increase the potential f for regional d development. t.

Dave Hall, State Director

USDA Ohio Rural Development – Columbus

Gerald Arnott, Director

Rural Housing Service Programs – Columbus

David Douglas, Director

Community Programs – Columbus

Deborah Rausch, Acting Director

Business-Cooperative Service Programs - Columbus

John Miller, Director

Ohio Rural Development East (Massillon Area Office)

Chris Spellmire, Director

Ohio Rural Development West (Findlay Area Office)

Contact Information

Assistance under USDA Rural Development programs is available to applicants in areas designated as “rural.” Under law, the definition of “rural area” is different for each program. Contact: Vince Paumier, Community Development Specialist USDA Ohio Rural Development vince.paumier@oh.usda.gov 614-255-2404 Or go to: www.rd.usda.gov/oh

USDA is an equal opportunity provider, employer, and lender.