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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
Multi-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
Business & Cooperatives
Beneficiaries of Our Programs
• Individuals• Corporations• Cooperatives• Partnerships• Other public/private for-profit/non-profit
legal entities• Federally recognized Indian tribes
Business & Cooperatives
Business & Cooperatives Programs
Business Programs
• Business & Industry Loan Guarantees• Intermediary Relending Program
(IRP) • Rural Microentrepreneur Assistance
Program (RMAP)• Rural Business Development Grants
(RBDG)Business & Cooperatives
Business & Cooperatives Programs
Energy Programs
• Rural Energy for America Program (REAP)
• Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program
• Advanced Biofuel Payment Program• Repowering Assistance Program
Business & Cooperatives
Business & Cooperatives Programs
Cooperatives Programs
• Value-Added Producer Grants (VAPG)• Small Socially-Disadvantaged
Producer Grant (SSDPG)• Rural Cooperative Development
Grants (RCDG)
Business & Cooperatives
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
Business & Cooperatives
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
Business & Cooperatives
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
Business & Cooperatives
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
Business & Cooperatives
• 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
Funding Opportunities
Business & Cooperatives
• 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
Funding Opportunities
Business & Cooperatives
• 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
Funding Opportunities
Business & Cooperatives
• 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
Funding Opportunities
Business & Cooperatives
Funding Opportunities
• 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
Business & Cooperatives
Eligible Areas
Applicants must be located in towns with populations less than 50,000 for most programs.
Business & Cooperatives
BUSINESS & INDUSTRY LOAN GUARANTEES
Case Studies
Business & Cooperatives
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
Business & Cooperatives
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
Business & Cooperatives
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
Business & Cooperatives
RURAL BUSINESS ENTERPRISE GRANTS (RBEG)
Case Studies
Southern California Focus on Cooperation
RBEG $55,000Applicant $18,000
Business & Cooperatives
California State University, Fresno Foundation
RBEG $50,000Applicant $51,000
Business & Cooperatives
West Hills Community College District
RBEG $99,500Applicant $50,000
*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
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
Funding Opportunities
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
Funding Opportunities
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
Funding Opportunities
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
Funding Opportunities
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
Funding Opportunities
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
Funding Opportunities
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
Business & Cooperatives
Karen Firestein, Program Director
(530) 792-5825
Community Programs
Anita Lopez, Program Director
(530) 792-5822
Single Family Housing
Ron Tackett, Program Director
(530) 792-5816
Multi-Family Housing
Stephen Nnodim, Program Director
530-792-5830
Contact Us at the State Office
