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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)
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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
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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
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Today’s Presenters Include:
John H. Broussard,
Business and Industry Division
Tony Crooks, Energy Division
Mark Brodziski, Specialty Programs
Presenters
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BusinessProgram Opportunities
Overview of
Business Programs
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Objectives
Become familiar with USDA Rural Development:
Business Programs
B&I Guaranteed Loan ProgramSpecialty Programs Division
Energy Programs Division
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USDA Rural Development
The mission of USDA Rural Development is to increase economic opportunity and improve the quality of life for all rural Americans.
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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.
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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
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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
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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.
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Business & Industry
Guaranteed Loan
made for state of the
art drilling barge used
within inland waters
of the Gulf Coast.
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Business & Industry
Chef Paul Prudhomme’s
hometown Andouille and Tasso
Meat processing facility.
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Business & Industry
Sells peanuts to Mars Candy to
produce Snickers and peanut M&Ms
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Business & Industry
Outside Advertising Storage & Integrated Systems
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Manufacturer of outdoor wrought-iron furniture
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Manufacturer of outdoor wrought-iron furniture
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Mining
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Renewable Energy Funding
Opportunities
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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.
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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
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REAP – 3 programs in 1
Energy Audits & Renewable Energy Assistance
Feasibility Study grants
Equipment & construction of renewable energy and energy efficiency projects
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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.
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REAP - Part 1 - EA/REDA
Eligible applicants• Governmental (State, Tribal and
Local) and their instrumentalities • Institutions of Higher Education • Electric cooperatives • Public power entities
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REAP – Parts 2 & 3
Renewable Energy Systems
Wind
Solar
Geothermal
Biomass
Hydro Power
Hydrogen
Energy Efficiency Improvements Buildings
Industrial (Equipment)
**Replacement**
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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
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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
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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.
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Energy Efficiency Improvement
Improvements to a facility, building, or process that reduces energy consumption, or reduces energy consumed per square foot.
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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
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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
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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.
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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
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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%)
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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
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REAP Projects
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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
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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
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Franklin General Hospital, Hampton, Iowa
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Sportsmans Resort—Tourism
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Timeless Bridal—Retail
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North Manufacturing—Mfg
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Local Food Enterprise Center
White House Champions of Change
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LSU Training Mobile
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Rural Business Enterprise Grant
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Resources
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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
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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
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Any Questions?
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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
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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.