Global Terrorism and its types and prevention ppt.
USDA Rural Advantage for Biz Development - for Maricopa Outlook Event
1. The Rural Advantage for
Business Development
Maricopa Economic Development Forum
December 8, 2011
Alan Stephens, State Director
USDA Rural Development/Arizona
2. ARE THERE ADVANTAGES FOR RURAL BUSINESSES?
Metro area businesses have lots of advantages
• bigger labor pool,
• proximity of
• markets,
• distributors,
• services
but for rural businesses, many resources exist
that are specifically FOR rural business
development ONLY
3. WHAT ARE SOME OF THOSE RESOURCES?
• Rural Information Center (RIC) – USDA program
for downtown revitalization
• National Institute of Food and Agriculture
(formally CSREES: the Cooperative State Research,
Education, and Extension Service)
• Small Business Administration
• Department of Commerce
• USDA Rural Development
4. RURAL INFORMATION CENTER
The Rural Information Center (RIC) assists local
communities by providing information and referral services
to local, tribal, state, and federal government officials;
community organizations; libraries; businesses; and
citizens working to maintain the vitality of America's rural
areas.
The RIC Web site contains over 3,000 links to current and
reliable information on a wide variety of rural resources and
funding sources, including RIC’s Database: Federal
Funding Sources for Rural Areas Database.
http://ric.nal.usda.gov/nal_display/index.php?info_center=5
&tax_level=1&tax_subject=205
5. National Institute of Food and Agriculture
The National Institute of Food and Agriculture (NIFA) is an
agency within the U.S. Department of Agriculture (USDA), part
of the executive branch of the Federal Government. Congress
created NIFA through the Food, Conservation, and Energy Act
of 2008. NIFA replaced the former Cooperative State
Research, Education, and Extension Service (CSREES), which
had been in existence since 1994.
NIFA's unique mission is to advance knowledge for
agriculture, the environment, human health and well-
being, and communities by supporting research, education and
extension programs in the Land-Grant University System and
other partner organizations. NIFA doesn't perform actual
research, education, and extension but rather helps fund it at
the state and local level and provides program leadership in
these areas.
http://www.nifa.usda.gov/
6. Small Business Administration
The Rural Business Investment Program (RBIP) is a joint
initiative between the U. S. Department of Agriculture (USDA)
and the Small Business Administration (SBA).
It was created to promote economic development and job
creation in rural areas. The program is similar to existing SBA
venture capital programs. Rural Business Investment
Companies (RBICs) must identify targeted Rural Areas and
demonstrate how they will assist those areas through
disciplined, profit-oriented investing in rural enterprises and
through hands-on technical assistance to rural enterprises via
Operational Assistance (OA) Grant funding.
The SBA also supports Small Business Development Centers
in various locations. Check out SBA services at:
http://archive.sba.gov/aboutsba/sbaprograms/inv/rbip/
7. US Department of Commerce
The DOC has several programs/agencies that are
available to help rural businesses, including the new
Minority Business Development Agency, which has
programs for rural areas.
For a more comprehensive list of DOC resources, go to:
www.commerce.gov/
8. WHAT USDA RD PROGRAMS ARE AVAILABLE FOR RURAL BUSINESSES?
• Business and Industry (B&I) Guaranteed Loan
• Intermediary Relending Program Loan (IRP)
• Rural Business Enterprise Grant (RBEG)
• Rural Business Opportunity Grant (RBOG)
• Rural Economic Development Loan and Grant (REDLG)
• Value-Added Producer Grant (VAPG)
• Rural Cooperative Development Grant (RCDG)
• Section 9007 REAP Loans/Grants
9. Who is eligible for B & I Loans?
Any legal entity, including
– Individuals
– Corporations
– Partnerships
– Cooperatives
– Trusts
– Non-profits
– Indian tribes or federally recognized
Indian tribal groups
All Native American communities are
eligible.
10. What can B&I funds be used for?
Business acquisitions, construction,
expansion, repair, or modernization
Purchase and develop land
Purchase of machinery, equipment,
leasehold improvements, supplies or
inventory
Start-up costs and working capital
Processing and marketing facilities
Refinance outstanding debt
Take out interim lender financing
11. How does the B & I Program work?
Lender-driven program (business finds lender, we
make guarantee to the lender)
80% guarantee for $5 million or less
70% guarantee for over $5 million up to and including
$10 million
60% guarantee for loans exceeding $10 million and
up to and including $25 million
A 3% guarantee fee must be paid to Rural
Development at the time of issuance of the Loan
Guarantee
The lender and their borrower negotiate the rate,
term, fees, security and loan covenant requirements,
subject to Rural Development approval
Annual servicing fee: ¼ of 1% x principal balance.
12. What is the Intermediary
Relending Program (IRP)?
IRP provides loans at 1% interest to
intermediaries which, in turn, provide
loans to recipients who are developing
business facilities or community
development projects in rural areas.
IRP loans are scheduled for repayment
over a period of up to 30 years.
Rural areas are any areas, except cities of
more than 25,000 people.
13. Who are eligible intermediaries for the IRP program?
Eligible intermediaries include:
• Public Bodies
• Nonprofit Organizations
• Indian Tribes
• Cooperatives
What can IRP loans to ultimate recipients be used for?
• Pay business start-up costs and working capital
• Build a new building or remodel an existing building on
fee land or leasehold
• Purchase new equipment, inventory or supplies
• Refinance existing debt
14. What are Rural Business Enterprise
Grants (RBEGs)?
RBEGs are grants used to support the
development of small and emerging private
business enterprises in rural areas.
They are NOT a grant for individual businesses
Rural areas are all areas except cities of more
than 50,000 people.
Eligible grantees are non-profits, public bodies
and federally recognized Indian Tribes.
15. What are eligible RBEG project purposes?
RBEG funds can be used
• To establish or supplement a revolving loan fund
• To provide technical assistance to small businesses
through education or training courses or seminars
• For site development by an eligible grantee (e.g. small
business incubator, infrastructure improvements) in
conjunction with other funds
16. In 2009, USDA Rural Development funded a Rural
Business Enterprise Grant to the City of Maricopa for
$30,000 in ARRA funds.
The funds were to provide an extensive training program
for prospective rural entrepreneurs and managers, as
well as existing small business owners.
The training was to help business development and
growth to create and save jobs. The program was to
enhance and compliment existing economic
development activities in the area.
17. What are Rural Business Opportunity Grants
(RBOGs)?
Rural Business Opportunity Grants are to
fund technical assistance and planning
activities in rural areas for the purpose of
improving economic conditions in the
areas.
Rural is any area of a state that
is not within the boundaries
of a city with a population
in excess of 50,000 people.
18. How may RBOG funds may be used?
RBOG funds may be used for:
• Technical assistance for business development and
economic development planning
• Identifying & analyzing business opportunities that will
use rural materials or resources
• Identifying, training, & providing technical assistance to
existing or prospective rural managers
• Establishing centers for training
19. What is the Rural Economic Development
Loan and Grant (REDLG) program?
• REDLG provides zero interest loans or grants to
eligible RUS electric or telecommunications
borrowers to promote rural economic development
and job creation projects
• Maximum loan term is 10 years
• Requires a minimum amount of 20% supplemental
funds for all loans and grants
• Loans are specifically to RUS borrowers to relend to
private for profit entities
20. What are Rural Cooperative
Development Grants?
Rural Cooperative Development Grants are used to
establish and operate centers to assist in the
development of cooperatives in rural areas.
Eligible applicants are non-profits and institutions of
higher education.
The matching fund requirement is 25% of the total
project cost.
21. What are Value-Added
Producer Grants?
• Value-Added grants are to assist producers who
have measurable value realized as a result of a
physical change in the product, change in
marketing, or product identity
• Examples are a group of growers processing grain
into bread or pizza; a tomato grower marketing the
product as a organic tomato; and/or tracing
hormone-free livestock to a retailer.
22. How do Value-Added Producer Grants work?
• Eligible grantees are independent producers, farmer
or rancher cooperatives, or agricultural producer
groups.
• Applicants must provide matching funds at least
equal to the grant request.
• Grant funds can be used for planning activities (i.e.
feasibility study and/or business plan) or for working
capital purposes.
23. 9007 Renewable Energy and Energy Efficiency
Improvements Grant Program
Designed to assist farmers, ranchers and rural small
businesses with energy projects. Over $150 million in
funds have been provided.
Grant funds can pay for up to 25% of eligible project
costs. Applicant must provide the other 75% or obtain
from other non Federal sources.
24. USDA Rural Development
Housing Programs:
• Single Family Direct Loans
• Single Family Guarantee Loans
• Multi-family
• Multi-family Rental Assistance
• Self-help Housing
• Home Repair Loans/Grants
25. Single Family Direct -- 502
• Funded directly to applicant by USDA RD
• Lowest fixed interest rate
• Available for low and very low income households
• 100% financing available for purchase of existing dwelling or to
Purchase a newly constructed dwelling
• Provides financing at reasonable rates and terms with -0- down
• Mortgage payments based on adjusted income
• Monthly payments must not be over 29%-33%
• Total debt may not be over 41%
Borrowers must:
• Have the ability to personally occupy the dwelling
• Be a citizen of the United States or be admitted for
permanent residency
• Non-occupant co-borrowers are not permitted
• Have stable, dependable income; credit worthiness
26. Single Family Guaranteed Loans - 502
Applicants for loans may have an income of up to
80% of median income for direct and 115% of the
median income for guaranteed for the
area. Families must be without adequate
housing, but be able to afford the mortgage
payments, including taxes and insurance. In
addition, applicants must have reasonable credit
histories.
27. In 2010, USDA Rural Development made
193 Guaranteed Home Loans
in Maricopa totaling
$21,461,170!
The Total Funding for Pinal
County for Guaranteed Home
Loans for FY10 and FY11 is:
FY10—1324 loans totaling
$153,049,362.00
FY11—782 loans totaling
$82,779,539.00
28. Multi-Family Housing
Rural rental housing loans are direct, competitive
mortgage loans made to provide affordable
multifamily rental housing for very low-, low-, and
moderate-income families; the elderly; and persons
with disabilities.
This is primarily a direct mortgage program, but
funds may also be used to buy and improve land
and to provide necessary facilities such as water and
waste disposal systems.
29. Rental Assistance
The rural rental assistance program provides
an additional source of support for households
with incomes too low to pay basic rent from
their own resources. RD pays the owner of a
multi-family housing complex the difference
between the tenant's contribution
(30 percent of adjusted income) and the
monthly rental rate.
30. Mutual Self-help Housing
The 502 mutual self-help housing loan program is used primarily to
help very low- and low-income households construct their own
homes. Families perform approximately 65 percent of the construction
labor on each other's homes under qualified supervision. The savings
from the reduction in labor costs allows otherwise ineligible families
to own their homes.
Applicants must be able to afford the mortgage payments including
principal, interest, taxes and insurance. These payments are 22 to 26
percent of an applicant's income. Applicants must be unable to obtain
credit elsewhere, yet have reasonable credit histories. Families with
very low incomes living in substandard housing
are given first priority.
31. Repair and Rehabilitation Grants - 504
Rural Housing Repair and Rehabilitation Grants are
funded directly by the Government. A grant is
available to dwelling owner/occupant who is 62 years
of age or older. Funds may only be used for repairs or
improvements to remove health and safety hazards, or
to complete repairs to make the dwelling accessible for
household members with disabilities. The amount of
the grant is based on the applicant's ability to repay
and must be used in conjunction with the repair and
rehabilitation loan. The lifetime maximum grant
amount is $7,500.
32. The Bottom Line…
In FY2010, with the addition of special funding through the
American Recovery and Reinvestment Act (ARRA), USDA
Rural Development invested over
$750,000,000
in rural Arizona!
In FY2011, the agency’s investment, excluding ARRA
funds which were no longer available, STILL outstripped
the previous year, with a record investment of regular state
allocation funds of over $355 million, not counting
the projects funded through our national office
33. CONTACTS
AREA ONE OFFICES AREA TWO OFFICES AREA THREE OFFICES
Prescott Valley Area Office Phoenix Area Office Willcox Area Office
8841 Florentine, Suite A 230 N. 1st Avenue, Suite 206 Suite 658 Bisbee Ave.
Prescott Valley, AZ 86314 Phoenix, AZ 85003 Willcox, AZ 85643
928.759.9301, ext. 3 602.285.6376 520.384.3529, ext. 4
928.759.9284 fax 602.285.6379 fax 520.384.2735 fax
Show Low Sub-Area Office Yuma Sub-Area Office Green Valley Sub-Area Office
1801 W. Deuce of Clubs 2197 S. 4th Avenue 1131 S. La Canada
Suite 120 Suite 104 Suite 203
Show Low, AZ 85901 Yuma, AZ 85364 Green Valley, AZ 85622
928.532.2270 928.782.0860, ext. 4 520.648.1769
928.532.2273 fax 928-782-0951 fax 520.648.0335
Flagstaff Satellite Office St. Michaels Satellite Kingman Satellite Office
1585 S. Plaza Way, #120 Office 101 E. Beale St., Suite B
Flagstaff, AZ 86001 Hwy 264, P.O. Box 859 Kingman, AZ 86401
928.774.2401, ext. 3 St. Michaels, AZ 86511 928.753.6181, ext. 4
928.774.2780 fax 928.871.5038, ext. 4 928.753.3524
928.871.4530 fax
ARIZONA STATE OFFICE All Business Program
230 N. First Avenue, Suite 206 Inquiries Should go to:
Phoenix, AZ 85003
602.280.8701 – Fax 602.280.8770
www.rurdev.usda.gov/az/ 602.280.8738