9.20.12 accessing usda rural development programs for cooperatives

Rural Development’s Broad Base of Economic Development Programs

September 2012

Rural Development

Committed to the Future of Rural Communities

United States Department of Agriculture

Rural Development (RD)

Rural Development

Under Secretary Dallas Tonsager

Rural Utilities Service

Acting Administrator

John Padalino

Business and Cooperative Programs

Acting Administrator

Lillian Salerno

Housing and Community Facilities Programs

Administrator

Tammye Trevino

Rural Development’s3 Agencies

Operations & Management

Acting Administrator

Ron Banegas

Rural Development

Under Secretary Dallas Tonsager

Business and Cooperative Programs

• Strengthening &

Diversifying Rural Economies

• Creating jobs

Housing and Community Facilities Programs

• Improving Quality of Life

• Strengthening Communities

• Building Ownership & Opportunity

Rural Development’s3 Agencies

Operations & Management

• Programs’ Support Service

• St. Louis Servicing

• Internal & External Relations

Rural Utilities Service

• Equal Access to Essential Services

• A Cleaner Environment

• Infrastructure for Growth

Today’s Presenters Include:

John H. Broussard,

Business and Industry Division

Tony Crooks, Energy Division

Mark Brodziski, Specialty Programs

Presenters

BusinessProgram Opportunities

Overview of

Business Programs

Objectives

Become familiar with USDA Rural Development:

Business Programs

B&I Guaranteed Loan ProgramSpecialty Programs Division

Energy Programs Division

USDA Rural Development

The mission of USDA Rural Development is to increase economic opportunity and improve the quality of life for all rural Americans.

Business Programs

Enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace.

We accomplish this by:

• Investing financial resources and providing technical assistance to businesses located in rural communities

• Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity

Business Programs

• B&I Guaranteed Loan Program• Intermediary Relending Program• Rural Business Enterprise Grant Program• Rural Business Opportunity Grant Program• Rural Economic Development Loan and

Grant Program• Rural Microenterprise Assistance Program• Energy Programs

B&I Guaranteed Loan Program

To improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.

This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide

lasting community benefits.

Business & Industry

Guaranteed Loan

made for state of the

art drilling barge used

within inland waters

of the Gulf Coast.

Business & Industry

Chef Paul Prudhomme’s

hometown Andouille and Tasso

Meat processing facility.

Business & Industry

Sells peanuts to Mars Candy to

produce Snickers and peanut M&Ms

Business & Industry

Outside Advertising Storage & Integrated Systems

Manufacturer of outdoor wrought-iron furniture

Manufacturer of outdoor wrought-iron furniture

Mining

Renewable Energy Funding

Opportunities

USDA Rural Development is helping to lead the way in the agriculture sector finding energy solutions in our fields and helping rural residents and communities access renewable energy systems and use energy more efficiently.

Rural Energy for America Program

Created in the 2002 Farm Bill as the Section 9006 program

Revised in the 2008 Farm Bill as Section 9007, Rural Energy for America Program

REAP – 3 programs in 1

Energy Audits & Renewable Energy Assistance

Feasibility Study grants

Equipment & construction of renewable energy and energy efficiency projects

REAP – Part 1EA/REDA

Renewable Energy Development Assistance/Energy Audit – includes site evaluation and report development for rural small businesses and agricultural producers to become more energy efficient and to use renewable energy technologies and resources.

REAP - Part 1 - EA/REDA

Eligible applicants• Governmental (State, Tribal and

Local) and their instrumentalities • Institutions of Higher Education • Electric cooperatives • Public power entities

REAP – Parts 2 & 3

Renewable Energy Systems

Wind

Solar

Geothermal

Biomass

Hydro Power

Hydrogen

Energy Efficiency Improvements Buildings

Industrial (Equipment)

**Replacement**

Feasibility Study Grants

Up to 25% of eligible project costs

Maximum: Lesser of $50,000 or 25% of cost

Minimum: No set minimum

Determine Feasibility of Renewable Energy Systems

REAP – parts 2 & 3 Eligibile Applicants

Agricultural ProducersDirectly engaged in ag production

50%+ of gross income comes from ag production

Electric Cooperatives (considered a small business as long as annual electric output is < 4 million MW hours)

Rural Small BusinessesMust meet SBA small business size standards

Use NAICS code for industry type: http://www.sba.gov/size/index.html

Renewable Energy

Energy derived from a wind, solar, renewable biomass, small hydroelectric, ocean energy, or geothermal source; or hydrogen derived from one of these sources

Renewable energy systemA system that produces or produces and delivers

usable energy from a renewable energy source.

Energy Efficiency Improvement

Improvements to a facility, building, or process that reduces energy consumption, or reduces energy consumed per square foot.

Eligible Costs

This program is for bricks and mortar projects, so the majority of funds should go towards: Post application purchase & installation of

equipmentPost application construction or project

improvements

Renewable Energy Examples

Solar installation to provide power to a rural small business or farm operation

Wood burning furnace to supply heat to the farm/construction shop

Anaerobic digester for a dairy operation to provide methane for on-site energy requirements and to sell to the local utility

Energy Efficiency Improvement Examples

Replace a grocery store’s coolers and freezers with high efficiency models.

Purchase a high efficiency grain dryer to replace an older dryer. Applicant could be an agricultural producer or small grain elevator.

Replace old inefficient furnace in retail shop with high efficiency HVAC system.

Common Inquiries which are INELIGIBLE

Residential improvementsMost common request – Solar to power

home and farm

Projects for Schools, Communities or not-for-profits

Landfill projects (methane gas extraction)

Research and Development projects

Types of Financial Assistance

Grant Only Up to 25% of total eligible costs

Guaranteed Loan Only Up to 75% of total eligible costs

Combination Grant & Guaranteed Loan (Combo)Up to 75% of total eligible costs (grant

cannot exceed 25%)

Funding Limits

Renewable EnergyMinimum grant - $2,500

Maximum grant - $500,000

Minimum loan - $5,000

Maximum loan –

$25 million

Energy EfficiencyMinimum grant - $1,500

Maximum grant - $250,000

Minimum loan - $5,000

Maximum loan –

$25 million

REAP Projects

Business Programs

• B&I Guaranteed Loan Program• Intermediary Relending Program• Rural Business Enterprise Grant Program• Rural Business Opportunity Grant Program• Rural Economic Development Loan and

Grant Program• Rural Microenterprise Assistance Program• Energy Programs

Pass-Through Loans

Revolving Loan Fund Programs

Business Incubator Centers

Technical Assistance and Other Training

Public Facility, Utilities, and Infrastructure

Community Development

EXAMPLES OF SPECIALTY PROGRAMS PROJECTS

Internet Explorer.lnk

Franklin General Hospital, Hampton, Iowa

Sportsmans Resort—Tourism

Timeless Bridal—Retail

North Manufacturing—Mfg

Local Food Enterprise Center

White House Champions of Change

LSU Training Mobile

Rural Business Enterprise Grant

Resources

Alliances and Partnerships• Community Banks and Commercial Lenders• Community Development Financial Institutions (CDFI)• Other Federal Agencies—SBA, EDA, Commerce, etc.• Universities and Community Colleges • Local/Regional Councils of Government and Regional

Planning Commissions• Community Action Agencies• County and local community and economic

development organizations

Business Programs

Lillian Salerno, Acting Administrator

Pandor H. Hadjy, Deputy Administrator

Vacant, Assistant Deputy Administrator

John H. Broussard, B&I Division Director

William Smith, Energy Director

Mark Brodziski, Specialty Programs Director

Any Questions?

Web Links• USDA Rural Development

www.rurdev.usda.gov

• Rural Business-Cooperative Service www.rurdev.usda.gov/rbs

• Rural Area Eligibility – www.rurdev.usda.gov/rbs

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider, employer, and lender.