Webinar on USDA Program Funding Opportunities
Did you know cooperatives are eligible for over 15 different funding programs within the US Department of Agriculture (USDA)?
In this webinar, NCBA Director of Public Policy R.L. Condra will host a panel of experts from USDA who will discuss a variety of funding opportunities available through USDA Rural Development. These officials and program staff will provide overviews of the agency’s programs and discuss other co-op-related funding opportunities. Webinar participants will:
- Learn about USDA Rural Development programs open to cooperatives
- Understand the array of funding opportunities available, such as the Business & Industry Guaranteed Loan Program, Intermediary Relending Program, Rural Community Advancement Program and Rural Energy For America Program and other energy programs
- Hear an update on the Rural Cooperative Development Grant Program
- Have an opportunity to interact with USDA officials
Panelists
- John H. Broussard, Director, Business and Industry Division, USDA Rural Development
- Chad Parker, Deputy Administrator, Cooperative Programs, Rural Business and Cooperative Programs
- Anthony Crooks, Energy Specialist, Energy Division, USDA Rural Development
Who Should Participate?
- Executive directors and leadership staff of:
- Credit unions
- Electric and other utility cooperatives
- Other cooperatives that could benefit from USDA funding
- Mayors and community leaders
- Economic and community development staff
- Cooperative developers, representatives and volunteers
- Grant writers
- Members of cooperatives
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
9.20.12 Accessing USDA Rural Development Programs for Cooperatives
1. United States Department of Agriculture
Rural Development (RD)
Rural Development’s Broad Base
of Economic Development Programs
September 2012
Rural Development
Committed to the Future of Rural
Communities
2. Rural Development’s
3 Agencies
Rural Development
Under Secretary Dallas Tonsager
Housing and Community
Facilities Programs
Administrator
Tammye Trevino
Business and Rural Utilities Service
Cooperative Programs
Acting Administrator
Acting Administrator Operations & John Padalino
Lillian Salerno Management
Acting Administrator
Ron Banegas
3. Rural Development’s
3 Agencies
Rural Development
Under Secretary Dallas Tonsager
Housing and Community
Facilities Programs
•Improving Quality of Life
Business and •Strengthening Communities Rural Utilities Service
Cooperative Programs •Building Ownership & Opportunity
•Equal Access to Essential Services
•Strengthening &
•A Cleaner Environment
Diversifying Rural Economies
•Infrastructure for Growth
•Creating jobs
Operations &
Management
•Programs’ Support Service
•St. Louis Servicing
•Internal & External Relations
5. Business
Program Opportunities
Overview of
Business Programs
6. Objectives
Become familiar with
USDA Rural Development:
Business Programs
B&I Guaranteed Loan Program
Specialty Programs Division
Energy Programs Division
7. USDA Rural Development
The mission of USDA Rural Development is to
increase economic opportunity and improve
the quality of life for all rural Americans.
8. 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.
9. 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
10. 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
11. 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.
12. Business & Industry
Guaranteed Loan
made for state of the
art drilling barge used
within inland waters
of the Gulf Coast.
13. Business & Industry
Chef Paul
Prudhomme’s
hometown
Andouille and
Tasso Meat
processing facility.
21. 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.
22. 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
23. REAP – 3 programs in 1
Energy Audits & Renewable Energy
Assistance
Feasibility Study grants
Equipment & construction of renewable
energy and energy efficiency projects
24. REAP – Part 1
EA/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.
25. REAP - Part 1 - EA/REDA
Eligible applicants
• Governmental (State, Tribal and
Local) and their instrumentalities
• Institutions of Higher Education
• Electric cooperatives
• Public power entities
26. REAP – Parts 2 & 3
Renewable Energy Energy Efficiency
Systems Improvements
Wind Buildings
Solar Industrial
Geothermal (Equipment)
Biomass
Hydro Power **Replacement**
Hydrogen
27. 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
28. REAP – parts 2 & 3 Eligibile
Applicants
Agricultural Producers Rural Small Businesses
Directly engaged in ag Must meet SBA small
production business size standards
50%+ of gross income Use NAICS code for
comes from ag production industry type:
http://www.sba.gov/size/ind
Electric Cooperatives ex.html
(considered a small
business as long as annual
electric output is < 4 million
MW hours)
29. 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 system
A system that produces or produces and delivers
usable energy from a renewable energy source.
31. Eligible Costs
This program is for bricks and mortar
projects, so the majority of funds
should go towards:
Post application purchase & installation of
equipment
Post application construction or project
improvements
32. 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
33. 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.
34. Common Inquiries
which are INELIGIBLE
Residential improvements
Most 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
35. 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%)
36. Funding Limits
Renewable Energy Energy Efficiency
Minimum grant - Minimum grant -
$2,500 $1,500
Maximum grant - Maximum grant -
$500,000 $250,000
Minimum loan - $5,000 Minimum loan - $5,000
Maximum loan – Maximum loan –
$25 million $25 million
38. 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
39. EXAMPLES OF SPECIALTY
PROGRAMS PROJECTS
Pass-Through Loans
Revolving Loan Fund Programs
Business Incubator Centers
Internet Explorer.lnk
Technical Assistance and Other Training
Public Facility, Utilities, and Infrastructure
Community Development
49. 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
50. 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
52. 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
53. 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.
Hinweis der Redaktion
REDLG $740,000 loan and $300,000 Grant through two intermediaries
IRP RLF Ultimate Recipient
RBEG RLF Ultimate Recipient
RBEG RLF Ultimate Recipient0—mfg of barrels for hunting rifles
RBEG for improvements to a vacant facility to start a local/regional food business incubator center—corner stone of a $4.5 million project. (Recipient)at the White House, in Washington, DC, on Wednesday, Jul. 6, 2011. These rural communities leaders came from across the country for the White House Rural Champions of Change event whose aim is to strengthen rural communities and promote economic growth.
