Upload
others
View
6
Download
0
Embed Size (px)
Citation preview
USDA Rural Development Business Programs
Assistance for Businesses • Business & Industry Guaranteed Loans (B&I)
• Rural Energy for America Program (REAP)
• Rural Economic Development Loan (RED-L)
• Value Added Producer Grants (VAPG)
Business & Industry (B&I) Guaranteed Loans • National Program Funding
• $1.0 billion
Business & Industry Guaranteed Loan Totals in Kansas Fiscal Year Amount
2015 $17,900,000
2014 $13,000,000
2013 $9,600,000
2012 $16,600,000
2011 $20,500,000
2010 $56,700,000
2009 $ 7,370,000
B&I Eligibility • Location
• Borrower/Entity
• Type of Project
B&I Eligible Areas • Population of 50,000 or less
• 2010 census and maps used
B&I Eligible Borrowers • Type of entity
• Citizenship
• Rural Area
B&I Past Projects in Kansas • Manufacturing
• Retail Business
• Hotel
• Professional Health Care Office
B&I Eligible Loan Purposes • Expansion
• Machinery & Equipment
• Business Purchases
• Construction Costs
• Start up working capital • Not line of credit
B&I Eligible Loan Purposes • Refinancing
• Some limitations, including – when necessary to improve cash flow and create or save jobs
• Agricultural Production • Fully integrated business
• Tourist and Recreational Facilities
• Packaging Fees
B&I Ineligible Loan Purposes • Line of Credit
• Owner-Occupied Housing
• Golf Courses
• Gambling Facilities
Percentage of Guarantee • 80% up to $5 Million
• 70% over $5 Million to $10 Million
• 60% over $10 Million to $25 Million
B&I Loan Rates and Terms • Rate
• Lender and borrower negotiate
• Interest rates, fixed or variable
• Maximum Terms • 7 years start up and working capital
• 15 years on machinery and equipment
• 30 years real estate and improvements
B&I Borrower Equity Requirements • 10% tangible balance sheet equity for existing business
• 20% tangible balance sheet equity for new business
• USDA RD measures equity in accordance with Generally Accepted Accounting Principles (GAAP)
B&I Loan Fees • Guarantee Fee: 3% x loan x% of guarantee
• Paid when guarantee is issued
• ½% annual renewal fee
• Other Loan Charges allowed • Routine Lender Fees/Professional Services
B&I Program • Inability to obtain other credit is not a requirement
• Not just for rural areas – as many might define a rural area
• Not just for agricultural related business
• B&I Guaranteed Loan Recipient
• Sharp Bros Seed Company located in Healy, Kansas
Rural Energy for America Program (REAP) Renewable Energy Systems & Energy Efficiency Improvements Program
• Grants
• Guaranteed Loans
Eligible Applicants
The technology must be commercially available. Research and development projects do not qualify.
Improve Profits for Your Rural Small Business, Farm or Ranch with REAP
REAP Grant Assistance • Up to 25% of Eligible Project Cost
REAP Guaranteed Loan Assistance • Up to 75% of Eligible Project Costs
Minimum Loan Amount $5,000 Total eligible project costs ≥ $6,667
Maximum Loan Amount $25 million Total eligible project costs ≥ $33.4 million
Details • USDA guarantees a commercial loan, applicant must have a willing lender
• Terms are negotiated between the lender and borrower
• Fees, appraisals, equity and collateral requirements apply
REAP Application Window Closing Deadlines October 31 Grant requests $20,000 or less
April 30 • Grant request $20,000 or less • Grant request ˃ $20,000 • Combination Grant/Loan Request
Continuous Application Cycle • Guaranteed Loans • Loan must score a minimum of 50 to
compete monthly • First monthly competition held once eight
applications are on file
Chicken Farm REAP Energy Efficiency
Radiant heat, fans, vents and computerized controls
• $99,293 Total Cost
• $20,000 REAP Grant
• $79,293 Commercial Loan
Improved egg production, reduced time and labor, energy savings
Veterinary Hospital Renewable Energy
Rooftop solar panels
• $148,050 Total Cost
• $ 20,000 REAP Grant
• $128,050 Applicant Funds
30-40% reduction in operating expenses
Laundromat & Dry Cleaner Energy Efficiency
Energy efficient equipment
• $42,040 Total Cost
• $10,510 REAP Grant
• $31,531 Dealer Financing
52% energy savings
Nursery Energy Efficiency
Energy efficient glass roof, radiant heat, fans, vents, & computerized controls
• $287,855 Total Cost
• $ 71,964 REAP Grant
• $100,000 REAP Guarantee
• $115,891 Commercial Loan
40% reduction in energy costs
Grocery Store
Energy efficient cooler doors
• $41,363 Total Cost
• $8,827 REAP Grant
• $2,950 Electric Co-op Rebate
$500 per month savings
Rural Manufacturer
Efficient lighting system
• $78,511 Total Cost
• $19,695 REAP Grant
• $58,816 Applicant Funds
50% savings on lighting bill
Grocery Store Renewable Energy
Geothermal heat, energy efficient coolers and lighting
• $198,600 Total Cost
• $49,650 REAP Grant
• $148,950 Commercial Loan
40% reduction in energy costs
Flower & Gift Shop Energy Efficiency
Energy efficient heating and cooling, insulation
• $34,509 Total Cost
• $8,627 REAP Grant
• $17,200 REAP Guarantee
• $8,682 Applicant Funds
60% reduction in energy costs
How to Apply • Contact a USDA Rural Development Business Program Specialist:
Doug Bruggeman, Katie Casper, Travis Snider or David Kramer
• REAP application forms are available at: http://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency/ks
• Submit applications any time of year
• Applications compete for funding based on score throughout the year
Rural Economic Development Loan & Grant Program
REDLG Program Overview • Loan up to 80% of a project cost
• Project must be in a rural area
• National competition for funds (monthly)
REDLG Program Overview • Loan made to ‘eligible’ Electric or Telecom intermediaries that
re-lend/pass loan on to a business
• Intermediary may charge 1% fee and require letter of credit to secure their loan
• $1 million maximum loan in federal fiscal year 2015
• Repayment over 10 years
Schwinn Produce Farm & The Barn in Leavenworth, Kansas.
Value Added Producer Grant Program (VAPG)
VAPG • Value-Added Producer Grants assist agricultural producers enter into
value-added activities related to the processing and/or marketing of value-added products
• Working Capital up to $250,000
• Planning grants up to $75,000
• Requires a $1 producer match for each grant $1
VAPG • Eligible Applicants
• Independent producers, Farmer and rancher cooperatives, Agricultural producer groups, Majority controlled producer-based business ventures
• Funds Can Be Used For: • Processing cost • Marketing and advertising expenses • Some inventory and salary expenses
• VAPG funds cannot be used to build facilities, produce the raw commodity or purchase equipment
VAPG • Start working with us today on the application
• Contact Nancy Pletcher (785) 271-2733 [email protected]
Gary’s Berries in Grantville, Kansas.
Wiebe Dairy in Durham, Kansas.
Wine Barn Winery and Vineyard is located in Kansas City, Kansas.
Nu Life Market based in Scott City, Kansas.
• Randy Snider, Business Programs Director, Iola Area Office, (620) 365-2901, Ext. 1430, [email protected]
• Doug Bruggeman, Business Programs Specialist, Hays Area Office, (785) 628-3081, Ext. 1435, [email protected]
• Katie Casper, Business Programs Specialist, Iola Area Office, (620) 365-2901, Ext. 1427, [email protected]
• David Kramer, Business Programs Specialist, Topeka State Office, (785) 271-2700, Ext. 2736, [email protected]
• Nancy Pletcher, Business Programs Specialist, Topeka State Office, (785) 271-2700, Ext. 2733, [email protected]
• Travis Snider, Business Programs Specialist, Newton Area Office, (620) 316-283-0370, Ext. 1439, [email protected]
USDA RD Business Programs Staff in Kansas