USDA, Rural Development Business and Coopera8ve Programs

Transcription

1 USDA, Rural Development Business and Coopera8ve Programs Bryan J. Zulko Management Analyst Rural Development U.S. Department of Agriculture 355 East Hancock Ave Athens, GA Cell # "CommiQed to the future of rural communires"

2 Where? Eligible Rural Areas CiRes, towns, and census designated places (CDPs) with popularons of 20,000 or less according to the latest decennial census of the United States. There is no limitaron placed on popularon in unincorporated rural areas, with the excepron of CDP s.

3 Eligible Rural Areas Projects must primarily serve and benefit rural residents and communires. At least 51% of popularon served must be in an eligible rural area.

4 All facilires must be for public use and be located in an eligible rural area. What Is An Essen8al Community Facility? Provides an essenral service to the local community the service must be a funcron customarily provided by a local unit of government. Must be a public improvement needed for the orderly development of a rural community.

5 An Eligible Facility Must Be: A funcron customarily provided by a local unit of government Operated on a non- profit basis Able to demonstrate significant support (N/A for Public Bodies)

6 Eligible Applicants PUBLIC BODIES Such as: municipality county district authority, or, other polircal subdivision of a state

7 Eligible Applicants NON- PROFIT ORGANIZATIONS An organizaron operated on a not- for- profit basis, such as an associaron, cooperarve, or private corporaron. Need to provide organizaronal documents to demonstrate nonprofit status.

8 Nonprofit Corpora8ons Must have significant 8es to local community To ensure that a facility under private control will carry out a public purpose Facility will conrnue to primarily serve rural areas

9 How Can Funds Be Used? Eligible Loan Purposes Purchase real estate/buildings ConstrucRon, expansion, or renovarons, to essenral community facilires Purchase vehicles and major equipment

10 Eligible Loan Purposes Purchase an exisrng facility to improve or to prevent a loss of service; Construct buildings, roads, bridges, day care facilires, hospitals, medical clinics, public safety facilires, city halls, court houses, etc. Finance anything essenral for orderly community development except recrearonal facilires

11 Special CF Ini6a6ve Science, Technology, Engineering and Math (STEM) Goal is to engage students early (by third grade?) to get them interested in STEM usually with the use of roborcs and problem solving. CF funds could be used to purchase equipment necessary for STEM.

12 Loan Terms Up to 40 years dependent upon the useful life of the security and repayment ability. Principal can be deferred for up to 3 years to allow facility to become operaronal.

13 Interest Rates (as of April 1, 2013) Present rates (subject to change quarterly): Market % (above $49,785) Intermediate % ($39,828 - $49,785) Poverty % (below $39,828) NOTE: Rates based on applicant s median household income as shown in the 2010 Census Data. The Poverty rate involves allevia6ng an exis6ng health or sanitary problem.

14 Community Facili6es Funding FY 2013 For FY 2013, USDA, Rural Development in Georgia is operarng under a ConRnuing ResoluRon. We hope to receive the following funds based on the FY 2012 allocaron: Direct Loans - $19,000,000 Guaranteed Loans - $1,000,000 CF Grants - $100,000 EII Grants - $50,000

15 Economic Development Opportuni6es Examples of possible economic development opportunires that could be funded through the use of Rural Development Community FaciliRes Loan Funds: Industrial Parks CF Funds can be used for the purchase of land and installaron of infrastructure. Funds cannot be used for individual site development or construcron of spec buildings EducaRon Workforce Development Center

16 Economic Development Opportuni6es Things to avoid: Cannot cross the line from a service you would expect from local government into a business venture Example development of retail space or office space that will be leased to for- profit enrres.

17 Example of Projects: Joint Development Authority of Franklin, Hart and Stephens Coun6es

18 Funding Sources USDA, Rural Development Appalachian Regional Commission Georgia Department of Community Affairs One Georgia Franklin and Hart CounRes SPLOST Funds

19 Rural Business Enterprise Grants (RBEG) Rural Defini8on: A city or town with a popula8on less than 50,000 and not con8guous to an urban area (based on the latest census). Property Eligibility website hzp://eligibility.sc.egov.usda.gov/eligibility 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 educa8on programs.

20 Eligible Use of Grant Funds Technical Assistance (TA) for business development Training (ex: welding, nursing, truck driving) Bricks/Mortar projects, real estate, equipment, infrastructure Revolving Loan Fund (RLF) to make small business loans

21 Example of Projects Funded (RBEG) Purchase/Renovate a theater Revolving Loan Fund Equipment & Training Technical Colleges Training Technical Assistance Commercial Kitchens

22 Rural Business Opportunity Grants (RBOG) The RBOG program promotes sustainable economic development in rural communities with exceptional needs through provision of training and technical assistance for business development, entrepreneurs, and economic development officials. The maximum grant for a project serving a single state is $50,000. The maximum grant for a project serving two or more states is $150,000. RD Instructions 4284-G

23 Who Is Eligible? (RBOG) Rural public bodies, rural nonprofit corpora8ons, rural Indian tribes, and coopera8ves with primarily rural members that conduct ac8vi8es for the mutual benefit of the membership are eligible provided they have sufficient financial strength and exper8se to carry out the ac8vity to be funded.

24 Sec8on 9007 Rural Energy for America Program Loans and Grants for Farmers, Ranchers, and Rural Small Businesses Purchase renewable energy systems (A process that produces energy) Improvements to a facility or process that reduce energy consumpron

25 What is an Energy Efficiency Improvement? Improvements to a facility, building, or process that reduces energy consump8on, or reduces energy consumed per square foot

26 2 6 What is Renewable Energy? BIOMASS!

27 2 7 What is Renewable Energy? Manure Digesters!

28 2 8 What is Renewable Energy? SOLAR!

29 2 9 What is Renewable Energy? WIND!

30 What are Energy Efficiency Improvements? Added Insula8on Insulated Windows 3 0

31 What are Energy Efficiency Improvements? Broiler House Upgrades 3 1

32 Small Socially Disadvantaged Producers Grant The primary objec8ve of the SSDPG program is to provide technical assistance to small, socially- disadvantaged agricultural producers through eligible coopera8ves and associa8ons of coopera8ves. Maximum Grant Amount Can vary, but generally between $175,000 and $200,