Rural Communities Broadband Roundtable

October 24, 2013

USDA Rural Development

• U.S. Department of Agriculture agency Develop economic opportunity and improve the quality of life in rural

areas Administer community, business and housing programs

• Provide assistance through Grants, loans and loan guarantees Includes individual homes, apartment complexes, renewable energy

projects, business start-ups and expansions, and public projects such fire stations, village halls, water and sewer systems

Organization

• Administer more than 20 programs in New York• Three major program areas

Community Housing Business

• National Programs administered through regional General Field Representatives (GFRs) and our National Rural Development office Includes telecommunications, utilities , Distance Learning and

Telemedicine

Community Facilities ProgramOverview

Community Facilities

• Facilities can include:Health care clinics, hospitals, nursing homes, Schools,

child care centers, head start centers, classrooms and dormitories

Police and fire stations, fire trucks, rescue vehicles, jails, communication centers

City/town/village halls, community centers, homeless shelters, food banks, sidewalks, libraries, museums, courthouses, street improvements

Community Facilities

• Applicants must be a municipality, non-profit organization, or Native American Tribe.

• Facilities must be located in rural areas with a population of less then 20,000 residents

• Applicants must be unable to obtain commercial credit at “reasonable rates and terms”

• Municipalities must go through the Bond Resolution process.

Community Facilities

• Applicants may apply for grant assistance on a graduated scale, based on the MHI, population, and funding availability.

• Grants are limited to the minimum amount needed for economic feasibility of the project.

• Direct loan funds may be used to pay 100% of the project cost. These include: construction, legal council, bond council, architect/engineering, construction inspection, etc.

Community Facilities

• Interest rates are a fixed rate with a term of the “useful life” of the facility

• Loans are secured by General Obligation Bonds for municipalities or collateral for a non-profit.

• Current Interest Rates are: Market rate: 3.125% Intermediate rate: 3.750% Poverty rate: 4.500%

Municipal Buildings

New Rescue Vehicle

Animal Shelter

New Rescue Building

New Home for NP Organization

New Health Center

Libraries

Fire Trucks

Museums

Any Questions

Business ProgramsOverview

Rural Business Programs

• Business & Industry Guarantee B & I

• Rural Business Enterprise Grant RBEG

• Intermediary Relending Program IRP

• Rural Energy for America Program REAP

• Rural Business Opportunity Grant RBOG

• Value Added Producer Grant VAPG

• Rural Economic Development Loans and Grants REDLG

• Rural Cooperative Development Grant RCDG

Business & Industry Guarantee (B&I)

• create jobs and stimulate rural economies by providing financial backing for the rural businesses

• Applicant is the banks customer, the bank is our customer• Business applies through a Federal or State Chartered bank,

credit union, or other approved lenders• Can be used for acquisition, start-up, and expansion of

businesses• Applications must be filed through an eligible lender (pre-

applications are recommended)

Rural Economic Development Loans and Grants REDLG

• Applicant must be Electric Cooperatives & Rural Telephone Companies

• Provides zero interest loans and grants to rural communities through Rural Utilities Services (RUS) borrowers.

• Purpose is for Business startup or expansion projects that create rural jobs

Rural Cooperative Development Grant Program (RCDG)

• You must be a non-profit corporation or an institution of higher education

• Grant funds may be used to pay for the cost of establishing and operating centers for rural cooperative development

• Used for technical assistance for improving the economic conditions of rural areas through the development of new cooperatives and improving operating of existing cooperatives.

• The grant will cover 75% of the cost • Maximum grant amount is $200,000

Example of a RCDG recipient

• The Cooperative Development Institute (CDI) has successfully applied for operating funds for many years from the RCDG program.

• CDI serves New England and New York as a technical assistance and training provider for new and existing coops

• Link to their website at http://www.cdi.coop/ , or reach them by phone at 1-877-632-6677

(877-NE-COOPS) or by email at info@cdi.coop

Contacts

• www.rurdev.usda.gov/ny

• State Office (315) 477-6400– Stanley Telega – State Director– Titus Falkenburg – Community Programs Director– Dave Schermerhorn – Business Programs Director

• Canton Local Office (315) 386-2401 ext.4– Renee Hotte – Lead Area Specialist