Rural Development Program Update. Randall Gore, State Director North Carolina USDA Rural Development

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1 Rural Development 2015 Program Update Randall Gore, State Director North Carolina USDA Rural Development

2 USDA Rural Development Impact Portfolio of more than $206 billion in loan and loan guarantees invested in rural communities as of FY2014 USDA Rural Development is the only Federal Department with the primary mission of serving rural areas In North Carolina - More than $1.4 billion was invested in FY2014 and $9.3 billion since FY 2009 in rural housing, rural businesses, utilities, community programs, broadband and energy programs across rural North Carolina.

3 Over 40 Programs Utilities - Addresses needs for basic services like clean water, sewers and waste disposal, electricity, and telecommunications/broadband Housing - Works to eliminate substandard housing by helping people buy, rent, refurbish or build quality housing Community Facilities - Addresses needs for community infrastructure such as police, fire and rescue stations, hospitals, libraries, schools and town halls Business - Creates jobs by funding and growing businesses

4 Programs that may benefit Agri-Business Rural Energy for America (REAP): Energy grants and loan guarantees Projects can receive grants up to 25% of the eligible project costs. Example: $100K project you will receive a $25K grant. Business and Industry Guaranteed Program (B&I) Loans made by traditional lenders, who seek a government guaranty in order to provide financing - Maximum loan up to $25 million Rural Business Enterprise Grants (RBEG) are for rural projects that finance and facilitate development of small and emerging rural businesses in rural areas. Rural Economic Development Loans and Grants (REDLG) are for electric and telephone cooperatives that have Rural Utility Service Loans Value Added Producer Grants (VAPG) Provides funds for economic planning activities or eligible working capital expenses: To help agricultural producers enter into value-added activities related to the processing and marketing of agricultural products and to expand markets for, and increase financial returns to agricultural producers

5 What Does Value Added Mean? Change in Physical State - An irreversible processing activity that alters the raw agricultural commodity and enhances its value and is something other than a post-harvest process that primarily acts to preserve the commodity for later sale. Examples include, but are not limited to: milk into cheese wheat into flour wool into clothing or rugs corn into E-85 ethanol livestock into packaged meat North Carolina Contact: Lyn Millhiser [email protected]

6 FY2014 VAPG Awards in North Carolina Applicants Must currently produce and own more than 50 percent of the raw commodity and Own the product from its raw commodity state through the production of the Value-Added product during the project. Applicant Name Grant Amount Raw Commodity Value Added Product Covington Spirits, LLC $200,000 Working Capital sweet potatoes Vodka Calderon Produce, Inc. $200,000 Working Capital tomatoes, peppers, squash, pickling cucumbers Safety certified local food M&M Produce, Inc. $75,000 Planning Grant tomatoes/bell peppers Safety certified local food Sunburst Trout Farms, LLC $148,579 Working Capital farm raised water rainbow trout Trout jerky and trout caviar Hero Farms, Inc $200,000 Working Capital variety of produce and grains Mixed salad greens, veg stirfry, fruit/veg bar Summerfield Farms DFC, LLC Simply Natural Dairy Farms, LLC $75,000 Planning Grant grass fed cattle Source-traceability, specialty cuts for unique markets, new products from hide/bones $180,000 Working Capital cow s milk Yogurt, bottled milk, flavored milks, half and half, heavy cream and butter Nooherooka Natural, LLC $40,000 Working Capital natural, free-range, whey-fed pork Various cuts, hot dogs, sausage, bratwurst

7 The Chapel Hill Creamery VAPG 2011 Recipient $180,000 (Working Capital) milk (raw commodity) / cheese (value added product)

8 Covington Spirits, LLC - VAPG 2014 Recipient

9 RURAL BUSINESS ENTERPRISE GRANTS (RBEG) PROGRAM The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses help fund distance learning networks, and help fund employment related adult education programs. To assist with business development, RBEGs may fund a broad array of activities. USDA is assisting with Phase II of the Foothills Farmers Market USDA is assisting with the purchase of refrigerator truck to use for delivery of specialty crops from farm to market. USDA funds are being used for Technical Assistance training for small craft based businesses located in western North Carolina counties. USDA is assisting with the renovation/upfit of storage facility cooler/freezer space and installation of energy efficient freezer units. North Carolina Contact: Lyn Millhiser [email protected]

10 Housing Programs in North Carolina Investment Since FY 2009 $6,580,922,380 and assisted more than 35,000 families Home Ownership Section 502 Direct Section 502 Guaranteed Home Repair Section 504 Loan/Grant Program Self Help Program Multi-Family Housing

11 Our programs are currently provided across the state through (6) Area Offices and (14) Sub-Area and Local Offices. USDA is an equal opportunity provider, employer and lender.