USDA Rural Development Sustaining Relationships in Indian Country

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1 USDA Rural Development Sustaining Relationships in Indian Country 1

2 Summary of Investments $2.6 billion benefitting American Indians & Alaska Natives Including: Home Ownership Loans = $742.2 million (5,801 loans) Water and Environmental = $442 million Community Facilities = $380.3 million Broadband/Telecom = $303.8 million Electric = $581.7 million Rural Business and Cooperative Programs = $133.1 million 2

3 Community Facilities Programs Grants Contact: FY 15 ~ $13.7 Million Tribal College Initiative ~ $4 Million State and/or Local Office Economic Impact Grants ~ $6.7 Million Direct Loans Poverty, Intermediate and Market Rates FY 15 ~ $2.2 Billion Guaranteed Loans Negotiate interest rate FY 15 ~ $135.4 Million Rural Community Development Initiative (RCDI) FY 15 ~ $10.4 Million 3

4 Water & Environmental Programs Water & Waste Disposal Loans & Grants FY 15 Direct Loans ~ $917.8 Million FY 15 Grants ~ $372.6 Million Another $27 million for federally recognized Tribes Another $25 million for Rural Alaska Village Grants Technical Assistance & Training Grants FY15 ~ $13.8 million Solid Waste Management Grants FY15 ~ $4 million Contact: State and/or Local Offices Chehalis Tribe Water Towers 4

5 Telecommunications Programs Broadband Loans FY15 ~ On hold to implement Farm Bill Changes Community Connect Grants FY15 ~ $11 million Contact: Telecommunications General Field Representatives (GFRs) National Office Additional information: Distance Learning & Telemedicine Grants FY 15 ~ $22.5 million Applications due: TBD Telecomm Infrastructure Loans FY15 ~ $690 million available 5

6 Electric Programs Electric Loans FY15 ~ $5 Billion Energy Efficiency Program High Energy Cost Grant Program FY15 ~ $26.6 Million Contact: Electric General Field Representatives National Office Additional information: 6

7 Rural Business & Cooperative Programs Rural Business Development Grants (RBDG) = RBOG + RBEG FY15 ~ $19.5 million Intermediary Relending Program (IRP) FY15 ~ $11.2 million Set Asides for Federally Business and Industry (B&I) Guaranteed Loans Recognized Tribes FY15 ~ $1.2 billion FY15 ~$3.7 million Rural Energy for America Program (REAP) Renewable Energy Systems and Energy Efficiency Improvements Grants and Loan Guarantees Value Added Producer Grant FY15 ~$1.7 million FY 15 ~ $19.4 million Cooperative Development Programs Contact: State and/or Local Office 7

8 Rural Business & Cooperative Programs Value-Added Producer Grant National Competition Maximum Award Amounts $75,000 Planning $200,000 Working Capital Matching Requirement 1-to-1 match (50 percent of total project costs) cash or eligible in-kind contributions to be used only for eligible project purposes. Grant Period Up to 36 months, depending on project complexity. Contact: State and/or Local Offices 8

9 Rural Business & Cooperative Programs Rural Energy of America Program REAP Program Reduces Energy Costs for Ag Producers and Small Businesses The 2014 Agricultural Act (2014 Farm Bill) authorized the Rural Energy for America Program with $50 Million in mandatory funding each fiscal year. 9

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12 National American Indian Housing Council June 2014

13 National American Indian Housing Council June 2014

14 National American Indian Housing Council June 2014

15 National American Indian Housing Council June 2014

16 National American Indian Housing Council June 2014

17 National American Indian Housing Council June 2014

18 National American Indian Housing Council June 2014

19 Value-Added Producer Grant 101

20 VAPG National Competition Maximum Award Amounts $75,000 Planning $200,000 Working Capital Matching Requirement 1-to-1 match (50 percent of total project costs) cash or eligible in-kind contributions to be used only for eligible project purposes. Grant Period Up to 36 months, depending on project complexity.

21 VAPG Four Eligible Applicant Types Independent Producers Agricultural Producer Groups Farmer or Rancher Cooperatives Majority-Controlled Producer-Based Businesses

22 VAPG All Four Applicant Types Must : Currently produce and own more than 50 percent of the raw commodity that will be used for the Value-Added product. Own the product from its raw commodity state through the production of the Value- Added product during the Project (except for MTVC).

23 Project Eligibility Value-added product methodology Expansion of customer base Greater portion of revenue from the process returned to the producer

24 VAPG 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

25 Purpose Eligibility VAPG 1) Planning Grant 2 Types of VAPG Grants To pay a qualified (third-party) consultant for development of feasibility, marketing, business plan related to the processing and/or marketing of a value-added product. 2) Working Capital Grant To pay eligible project expenses related to the processing and/or marketing of a value-added product.

26 VAPG Grant Period Eligibility Maximum timeframe of 36 months in length from the date of award (date of grant agreement execution). Note: this is not open-ended. Each project s grant period will be based on the project s complexity, as indicated in the application work plan. Extensions of up to 12 months will be considered only if for unavoidable or unforeseen circumstances. (Note: no grant may extend beyond 36 months, therefore no extension is available for grants with 36 month grant periods).

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