USDA Rural Development California April 21, 2015 Karen Firestein Program Director Business & Cooperatives Programs USDA Rural.

USDA Rural Development California

http://www.rd.usda.gov/caApril 21, 2015

Karen FiresteinProgram Director

Business & Cooperatives Programs

USDA Rural Development California

Introduction & Overview

Why are we here?

RD’s vision is to maximize our program benefits to support a rural America

that is a healthy, safe, and prosperous place to live

and work.

How do we work?Rural Development uses over 40 loan and grant

programs to create opportunities in housing, business, and infrastructure.

We serve as a catalyst to improve conditions in rural America by offering technical assistance and increasing

the flow of capital through leveraged partnerships.

Successful rural economic development requires collaboration, cooperation and coordination with local

leaders, public and private sector partners, and educational institutions.

What do we do?

We are a federal agency that makes loans and grants to protect and preserve the livelihood of rural

communities across the United States.

Rural Utilities Service

Rural Housing & Community Facilities

Rural Business & Cooperative

Service

Rural Development Programs

Programs

• Business and Industry Guaranteed Loans• Rural Business Development Grants• Intermediary Relending Program• Rural Energy for America Program• Advanced Biofuel Payment Program• Value Added Producer Grants• Cooperative Development Assistance

• Electric Program• Water & Environmental Programs• Telecommunications and Broadband

Programs

• Homeownership Loans• Home Repair Loans & Grants• Mutual Self-Help TA Grants• Multi-Family Housing Loans• Housing Preservation Grants• Community Facilities Loans & Grants

Rural Development Funding Streams

Types of

Funding

Guaranteed Loans

Direct Loans

Grants

Direct Payments

WHAT IS OUR IMPACT ON RURAL AMERICA?

Annual Funding

$973 Millio

n

FY 2013

$998 Millio

n

$1.2 Billio

n

FY 2014

FY 2012

Total Funding in FY2014: $973 Million

Single Family

Housing$725 Million

Community Programs

$52 Million

Business & Cooperative

s$70 Million

Multi-Family Housing

$126 Million

Programs

Community Programs

Business & Cooperatives

Single Family Housing


BUSINESS & COOPERATIVES

What is the mission of Business & Cooperatives?

• To create and save rural jobs• To improve the economic and

environmental climate of rural communities


Beneficiaries of Our Programs

• Individuals• Corporations• Cooperatives• Partnerships• Other public/private for-profit/non-profit

legal entities• Federally recognized Indian tribes



Business Programs

• Business & Industry Loan Guarantees• Intermediary Relending Program

(IRP) • Rural Microentrepreneur Assistance

Program (RMAP)• Rural Business Development Grants

(RBDG)Business & Cooperatives


Energy Programs

• Rural Energy for America Program (REAP)

• Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program

• Advanced Biofuel Payment Program• Repowering Assistance Program



Cooperatives Programs

• Value-Added Producer Grants (VAPG)• Small Socially-Disadvantaged

Producer Grant (SSDPG)• Rural Cooperative Development

Grants (RCDG)


Funding Opportunities

• Business & Industry Loan Guarantees (B&I)– Guarantees loans by eligible lenders to rural

businesses – Maximum $10-$25 million per borrower– One-time guarantee fee of 3% – Real estate: 30 year term– Chattel: 15 year term– Working capital: 7 year term – Guarantees of varying percentages available

depending on loan size


Funding Opportunities• Intermediary Relending Program

(IRP)– Recipients are nonprofit, public agency,

tribal or cooperative intermediaries– Ultimate beneficiaries are small

businesses promoting rural community economic development

– 1% interest rate–Maximum loan to ultimate beneficiary is

$150,000 or 75% of project costBusiness & Cooperatives

Funding Opportunities• Rural Microentrepreneur Assistance

Program (RMAP)– Loans and grants to microenterprise

development organizations– Ultimate beneficiaries must have 10 or

fewer full-time employees– Up to $50,000 loans for ultimate

recipients or 75% of project cost– Grants require 15% match


Funding Opportunities• Rural Energy for America Program

(REAP) Guaranteed Loans & Grants (9007)–Min $5,000 / Max $25 million loan

guarantee– Project Types:• Renewable Energy System (RES)

– 25% of project cost/$500,000 maximum grant

• Energy Efficiency Improvement (EEI) – 25% of project cost/$250,000 maximum grant


Funding Opportunities• REAP Energy Audit (EA) and

Renewable Energy Development Assistance (REDA) Grant (9007)– To assist agricultural producers and

small businesses by conducting energy audits

–Maximum grant $100,000


• Rural Business Development Grant (RBDG)– Established under the 2014 Farm Bill– Designed to assist in the development of

small and emerging private businesses and/or nonprofits in rural communities

– Consolidation of Enterprise Grant (RBEG) and Opportunity Grant (RBOG) programs with no substantive changes



• Rural Business Development Grant (RBDG)–May be used for technical assistance,

job training and other economic development activities

– Up to 10% of authorized funds may be used for “opportunity type grant” related activities

– Includes set-asides for REAP Zones, Federally Recognized Tribes, and Rural Transportation



• Rural Business Development Grant (RBDG)–More than $28 million available

nationally– Eligible applicants include public bodies,

nonprofits and Tribes–Must demonstrate a successful history

of administering economic development and technical assistance programs



• Rural Business Development Grant (RBDG)– Contact a local Rural Development office

for more details and how to apply– Applications for Native American set-

aside funds due by 4 PM on May 4, 2015– All other applications due June 19, 2015




• Rural Business Development Grant (RBDG)– Established under the 2014 Farm Bill– Designed to assist in the development of

small and emerging private businesses and/or nonprofits in rural communities

– Consolidation of Enterprise Grant (RBEG) and Opportunity Grant (RBOG) programs with no substantive changes


Eligible Areas

Applicants must be located in towns with populations less than 50,000 for most programs.


BUSINESS & INDUSTRY LOAN GUARANTEES

Case Studies


El Pajaro Community Development Corporation

B&I Loan Guarantee $2,200,000Applicant –Purchase Real Estate $66,000Applicant – LH/Tenant Improvements $335,000Applicant – FF&E $120,000Other $400,000

HotelHotel Purchase $350,000Working Capital $150,000Fees & Costs $106,000B&I Loan $3,900,000


RENEWABLE ENERGY FOR AMERICA PROGRAM (REAP)

Case Studies

GroundTrac Solar Panels

Agricultural Producer: Jelly’s Ferry Orchard in Red Bluff, CA

• Finance Structure:– $43,146 REAP

Grant– $129,438 Applicant

– $172,584 Total Project Costs


Roof-Mounted Solar PanelsRural Small Business: Nolind’s Pioneer Auto Body & Shipping in Oroville, CA

• Finance Structure– $20,000 REAP grant– $150,000 Bank Loan– $4,768 CSI rebate

– $89,878 Total Project Costs


RURAL BUSINESS ENTERPRISE GRANTS (RBEG)

Case Studies

Southern California Focus on Cooperation

RBEG $55,000Applicant $18,000


California State University, Fresno Foundation



West Hills Community College District


*Hosting the “Apps for Ag” Hackathon at the Farm of the Future on

April 17-19, 2015

COMMUNITY PROGRAMS

What is the mission of Community Programs?

• To strengthen infrastructure• To support basic needs of food and

water • To address essential needs of

education and health care• To meet necessary needs of access

to cultural and recreational opportunities Community Programs

Beneficiaries of Our Program

• Nonprofit Organizations that are broadly based and have significant community support

• Indian Tribes• Public Bodies – including cities,

counties and special districts• Mutual Water Companies

Community Programs

Community Programs• Water and Sewer Infrastructure–Water and Waste Disposal Loan and

Grant– Emergency Community Water

Assistance Grants– Colonias– Tribal

• Community Facilities Loans, Grants and Guarantees

Community Programs

Community Programs• Rural Community Development

Initiative• Telecommunications including:– Broadband– Distance Learning Telemedicine– Telephone Service

• Electric– Rocky Chenelle (530) 379-5032

[email protected]

Community Programs

• Water and Waste Disposal Loan and Grant Program– Low interest rates extend for up to 40

year loans• Currently 2.25% - 3.75%

– Grants are up to 75% of project cost


Community Programs

• Community Facilities Direct and Guaranteed Loans– 3 interest rate levels: poverty,

intermediate, market– Guarantees up to 90% of any loss of

interest or principal on the loan– Term may not exceed applicant’s

authority, useful life of facility, or maximum of 40 years


Community Programs

• Community Facilities Grants – Grants are up to 75% of project cost– Priority points for: • Small communities: population is ≤ 5,000• Low-income communities: MHI is below the

higher of the poverty line or 60% of California’s non-metropolitan MHI • Healthcare, public safety, or public and

community services


Community Programs

• Rural Broadband Access Loans & Guarantees–Map existing and proposed service

coverage areas– Not accepting applications until new

Farm Bill 2014 regulation is published


Community Programs

• Distance Learning Telemedicine– Grants are for up to100% of project cost– Notice of Funds Availability (NOFA)

announced annually in Federal Register–Minimum 15% match– Awards range from $50,000 to

$500,000


Community Programs

• Community Connect Grant– Improvement, construction, acquisition, or leasing

of facilities used to deploy broadband service – Cost of providing necessary bandwidth for service

free of charge to Critical Community Facilities for 2 years

– Minimum: $100,000– Maximum: $3,000,000


Community Programs

Eligible Areas

Applicants must be in or outside a city, town or census-designated place with populations under 10,000 for Water Programs and 20,000 for Community Facilities.

Community Programs

WATER & ENVIRONMENTAL PROGRAMS

Case Studies

City of WoodlakeWEP Loans $17,479,000WEP Grants $5,821,000CF Loans$3,177,100CF Grants $154,100

Community Programs

PUBLIC SERVICESCase Studies

Desert Alliance Community Empowerment (DACE)

Portable Toilet and Showers

Grant $100,000

Community Programs

Questions?

Visit Our New Website

http://www.rd.usda.gov/ca


Karen Firestein, Program Director

(530) 792-5825

[email protected]

Community Programs

Anita Lopez, Program Director

(530) 792-5822

[email protected]

Single Family Housing

Ron Tackett, Program Director

(530) 792-5816

[email protected]


Stephen Nnodim, Program Director

530-792-5830

[email protected]

Contact Us at the State Office

Contact Us!

Karen Firestein

BCP Program Director

(530) 792-5825

[email protected]

USDA Rural Development California April 21, 2015 Karen Firestein Program Director Business & Cooperatives Programs USDA Rural.

Documents

rural america

rural jobs

grant programs

program benefits

total funding

annual funding

technical assistance

direct payments