USDA Rural Development. Programs Working in Rural America January 2015 Wyoming Economic Development Association

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USDA

Rural Development

Programs Working in Rural

America

January 2015

Wyoming Economic

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Renewable Energy & Energy

Efficiency

– Energy Grants may be used to pay up to 25% of the eligible project costs, or as follows:

Type of Application Minimum Amt. Maximum Amt.

Renewable Energy System $2,500 $500,000

Energy Efficiency Improvement $1,500 $250,000

– Energy Loan Guarantees (or combination Grant & Loan Guarantee) may be used to pay up to 75% of the eligible project costs, or as follows:

Type of Application Minimum Amt. Maximum Amt. Renewable Energy System $2,500 $25,000,000 Energy Efficiency Improvement $1,500 $25,000,000

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Renewable Energy & Energy

Efficiency

• Existing private owned businesses, Ag producers,

• Purchase/retrofit equipment for a building, • Install renewable energy system,

• Must be in a town with a population of 50,000 or less,

• Must be 51% owned by a US Citizen or legal permanent resident

.

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Value Added Producer

Grants

• Changing the physical state of an

agricultural commodity or product (i.e.

wheat to flour or cookies);

• Differentiated production or marketing

(i.e. organic tomatoes);

• Renewable energy (i.e. anaerobic

digester, electricity);

• Processing and marketing (i.e. wine

bottles for those former grapes).

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Value Added Producer

Grants

• Eligibility includes independent ag

producers ($1,000 of product

annually)

• Farmer/Rancher Co-ops

• Ag producer groups

• Majority controlled producer-based

business ventures

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Intermediary Relending

Program

• Rural Development lends funds that are then loaned to others for new businesses, expansion, create employment, or save existing jobs or community projects.

• RD interest 1% per annum. You charge what is negotiated between you and the ultimate recipient (see reg.).

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Rural Economic

Development Grants

• Grants made to a Utility provider.

• Utility provider operates and administers a revolving loan fund from the grant.

• Utility provider must contribute 20%.

• First loan is zero interest to a non-profit entity or public bodies, etc.

• As funds are repaid (revolved), subsequent loans are set by provider not to exceed

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Other Programs you may not

be aware of for Businesses

• Rural Business Enterprise Grant

• Rural Business Opportunity Grant

• Rural Cooperative Development

Grant

• Business and Industry Guaranteed

Loans

• Cooperative Services Technical

Assistance

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Rural Community

Development Initiative

• Undertake project in housing,

community facilities and economic

development in rural areas.

• Nationally competitive program

• Conduct community development

programs

• Provide training and staffing

• Provide resources for professional

services

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Rural Community

Development Initiative

• $50,000 to $500,000, average

$330,000

• Dollar for dollar match. No in-kind

• Public or private organizations

including Tribal entities can apply.

• Recipients of assistance can be

non-profit organizations, low income

communities or federally recognized

tribes.

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Grants are available depending upon the Median Household Income (MHI) of the servicing area and location of the facility as compared with the State/National Median Household Income ○ Grant funding is subject to available appropriated funds. Wyoming receives approximately $70,000 annually year in Community Facility Grant funds.

○ Loans are available with interest rates determined

according to service area MHI for terms of up to 40 years, depending upon the useful life of the security.

○ Based upon repayment ability & outstanding indebtedness. THIS IS PRIMARILY A LOAN PROGRAM.

Community Facilities Direct

Loans & Grants

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Water and Environmental

Programs

• We have loans and grants for infrastructure including: • Water

• Waste water • Solid waste

• Preliminary Engineering Reports

• Approved soft costs not covered by other funding partners • Road/street repair when area disturbed by pipe replacement. • Community Facility loan can be leveraged with WEP

loan/grant for street repair.

• No origination or application fee • Sustainable projects

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Water and Environmental

Programs

Search and Pre-development grants. Eligible entities below the poverty line or below 80% of statewide non-metropolitan median household income.

These grant are to help communities with little or no resources pay for pre-development of Preliminary

Engineering Report and make application for necessary projects.

Other Loans and grants.

Loan and grant funds are based on sound underwriting. Financial need determines grant funding for any project. Revenue Bonds are general security for water projects. These are not put out for public sale, so there is no bond rating and costs are much cheaper than public bond sales. Guaranteed loans work directly with local lenders.

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