For Administrative Use Only Missouri RD AN No.1387(1940-L)

April 1, 2002

####### TO: All Employees 

FROM: Gregory C. Branum

State Director, Rural Development

SUBJECT: Allocation of Funds --- Fiscal Year 2002

Community and Business Programs

[PURPOSE/INTENDED OUTCOME]{.underline}:

To provide the allocation amounts available for the C&BP programs, to
allocate most C&BP program funds to the Area Offices and to provide
guidance for Fiscal Year 2002.

[COMPARISON WITH PREVIOUS AN]{.underline}:

This AN replaces Missouri AN No. 1370 (1940-L) dated February 7, 2001.

[IMPLEMENTATION RESPONSIBILITIES]{.underline}:

The amounts appropriated nationally in FY 2002 for the various C&BP
programs allocated to states are shown below and compared to FY 2001
allocations:

> [Programs FY2002 FY2001]{.underline}

Water & Waste Direct Loan \$879,316,860 \$883,700,380

Water & Waste Guaranteed Loan 75,000,000 75,000,000

Water & Waste Grant 586,015,000 594,265,000

Rural Business Enterprise Grant 41,000,000 40,664,000

Business & Industry Guaranteed Loan 1,152,333,515 1,556,162,791

Business & Industry Direct Loan 0 50,000,000

Community Facility Direct Loan 249,447,513 250,000,000

Community Facility Guaranteed Loan 210,000,000 210,000,000

Community Facility Grant [10,000,000]{.underline}
[9,000,000]{.underline}

TOTALS \$3,203,112,888 \$3,668,792,171

EXPIRATION DATE: FILING INSTRUCTIONS: Preceding

September 30, 2002 Rural Development Inst. 1940-L

Missouri AN No. 1387(1940-L)

Page 2

The following allocations have been received for Missouri for FY 2002
and are compared to the amounts initially allocated for FY01.
Allocations will be made to Area Offices for most loan and grant
programs as outlined in exhibits attached to this AN.

[Programs FY2002 FY2001]{.underline}

Water & Waste Direct Loan \$20,694,000 \$19,821,000

Water & Waste Guaranteed Loan 1,506,000 1,506,000

Water & Waste Grant 11,361,000 10,685,000

Rural Business Enterprise Grant 689,000 689,000

Business & Industry Guaranteed Loan 22,818,000 17,295,000

Business & Industry Direct Loan 0 1,045,000

Community Facility Direct Loan 5,855,000 5,855,000

Community Facility Guaranteed Loan 3,819,000 3,819,000

Community Facility Grant 207,000 207,000

TOTALS \$66,949,000 \$61,010,000

Funds for the following programs will not be distributed to the States.
Funds can be requested from the National Office on a case-by-case basis.

[Programs FY2002]{.underline}

Solid Waste Management Grant 3,500,000

Technical Assistance & Training Grant 17,465,000

Intermediary Relending Program 38,171,719

Rural Business Opportunity Grant 5,100,000

Rural Economic Development Loan 14,966,887

Rural Economic Development Grant 4,000,000

Distance Learning & Telemedicine Loan 200,000,000

Distance Learning & Telemedicine Grant 15,000,000

Distance Learning & Telemedicine Loan/Grant 110,000,000

[Empowerment Zone/Enterprise Community Earmarks -- Applicable to East
Prairie]{.underline}

Water & Waste Loan \$30,973,837

Water & Waste Grant 25,300,000

Business & Industry Guaranteed Loan 27,540,107

Intermediary Relending Program Loan 6,317,982

Rural Business Enterprise Grant 7,000,000

Rural Business Opportunity Grant 1,000,000

Community Facility Direct Loan 3,001,841

Community Facility Grant 1,000,000

Missouri AN No. 1387(1940-L)

> Page 3

**[Mississippi Delta Earmarks --- Applicable to MO Areas 4, 6 and
7]{.underline}**

Intermediary Relending Program \$7,981,948.62

Rural Business Enterprise Grant 1,000,000.00

Rural Business Opportunity Grant 1,000,000.00

No FY 2002 allocations are available for Watershed, for Resource,
Conservation & Development (RC&D), for B&I Direct Loans or for the
Emergency Community Water Assistance Grant (ECWAG) Programs.

Copies of the following National Office documents containing policies
and distribution of funds to the states were previously e-mailed to all
offices:

RBS -- RD Instruction 1940-L -- Exhibit A -- Attachment 1

RHS -- RD Instruction 1940-L -- Exhibit A -- Attachment 2

RUS -- RUS Instruction 1780 -- Staff Instruction 1780-5

Exhibits attached to this AN include:

Exhibit A - B&I Loans, RBEGs and Other RBS Programs

Exhibit B - Water and Waste Disposal

Exhibit C - Community Facilities

Exhibit D - Summary of Pooling Dates and National Office Funding Cycles

Exhibit E - Documentation to be Submitted to the State Office at the
Time of

RDM Loan/Grant Approval

Exhibit F - C&BP Targeted Counties

Missouri AN No. 1387(1940-L)

Exhibit A

**BUSINESS & INDUSTRY LOANS,**

**RURAL BUSINESS ENTERPRISE GRANTS**

**AND OTHER RBS PROGRAMS**

I. **[General:]{.underline}**

> A. Under the Rural Community Advancement Program (RCAP), budget
> authority has been appropriated for Business & Industry Guaranteed
> Loans, Rural Business Enterprise Grants (RBEG) and Rural Business
> Opportunity Grants (RBOG). Funds are also available for the following
> programs for Fiscal Year 2002: Intermediary Relending Program Loans,
> Rural Economic Development Loans and Grants, North American
> Development Bank Initiative (NADBank), and Armament Retooling and
> Manufacturing Support Initiative (ARMS). Allocations have been made to
> States for B&I Guaranteed Loans, and Rural Business Enterprise Grants.
> Every effort should be made to re-emphasize Rural Development\'s
> mission as a provider of affordable credit to those areas of greatest
> need. No funding was appropriated for B&I Direct Loans this FY.
>
> B. [**Rural Area Eligibility**.]{.underline} For programs under the
> RCAP, the FY2002 Appropriations Bill specifies that assistance is
> limited to rural areas. Rural area is defined as follows for the
> various RBS programs:
>
> 1\. [B&I Guaranteed Loans]{.underline}. All territory that is not
> within the outer boundary of any city having a population of 50,000 or
> more and the immediately adjacent urbanized and urbanizing area with a
> population density of more than 100 persons per square mile. Refer to
> RD Instruction 1980-E -- 1980.402 and 1980.405 and 4279-B --
> 4279.108(c)
>
> 2\. [Rural Business Opportunity Grant (RBOG)]{.underline} - Any area
> of the State not within the boundaries of a city with a population in
> excess of 10,000 inhabitants. Refer to RD Instruction 4284-G -
> 4284.603

3.  [Rural Business Enterprise Grant (RBEG)]{.underline} - Any area of
    the State not within the outer

boundary of a city having population of 50,000 or more and the
immediately adjacent

urbanized and urbanizing areas with a population density of more than
100 persons per

square mile. Refer to RD Instruction 1942-G - 1942.304.

4.  [For all Business Programs]{.underline}: The City of St. Joseph,
    Missouri, shall be considered a

rural area for Rural Development grants and loans relating to an
application from a

farmer-owned cooperative, a majority of whose members reside in a rural
area, for

the purchase and operation of a facility beneficial to the purpose of
the cooperative.

C. **[Transfer of Funds]{.underline}**

1\. Because the following programs are included in the RCAP, the State
Director has the authority to transfer up to 20 percent of their initial
State B&I Guaranteed Loan and RBEG allocations between programs.
Transfer requests received by the National Office by the third Tuesday
of each month will be transferred by the first Tuesday of the following
month.

Missouri AN No. 1387(1940-L)

Exhibit A - Page 2

2\. The impact of transferring funds is dependent on the established
loan subsidy factor amount. The factor is .0374 for B&I Guaranteed
Loans. The impact of transfers is shown in the following examples using
the maximum 20% limit for Missouri.

a\. Maximum transfer of Guaranteed Loan to RBEG Grant:

\$22,818,000 - Initial B&I Guaranteed Loan Allocated

\$4,563,600 - 20% of allocaiton

\$4,563,600 x .0374 = \$170,678.64

\$170,678.64 = RBEG allocation increase

b\. Maximum transfer of RGEG to Guaranteed Loans

\$ 689,000 - Initial RBEG allocation

\$137,800 - 20% of allocation

\$137,800 divided by .0374 = \$3,684,491.97

\$3,684,491.97 --- Guaranteed Loan increase

3\. When the State allocation of B&I Guaranteed funds is exhausted, we
will request funds from the National Office reserve. The State does not
plan to convert RBEG funds to guaranteed funds when we can get funds
from the National Office Guaranteed Loan reserve.

D. **[Biobased Products and Bioenergy]{.underline}**. Executive Order
13134, Developing and Promoting Biobased Products and Bioenergy, signed
by the President on August 12, 1999, contains criteria for agencies to
follow in the creation and adoption of technologies needed to make
biobased products and bioenergy cost-competitive in large national and
international markets. One of the fundamental goals articulated in the
Executive Order is to promote national economic growth, with specific
attention to rural economic interests through the conversion of
renewable farm and forestry resources to affordable electricity, fuel,
chemicals, pharmaceuticals, and other materials. Employees are
encouraged to work with these applicants and consider these
applications, where allowed under current regulations, as priority
applicants. Further guidance will be provided under separate cover
outlining guidelines to utilize in evaluating and processing these
applications.

Missouri AN No. 1387(1940-L)

Exhibit A --- Page 3

**II. [State Allocations]{.underline}**

**A.** **[Business and Industry Guaranteed Loans]{.underline}**

1\. Funds available nationally include:

#######  Total Amount Available (Includes Carryover) \$1,152,333,515.50 {#total-amount-available-includes-carryover-1152333515.50 .unnumbered}

Less Earmark EZ/EC and REAP 27,540,106.95

Less Set-Aside Fed Home Loan Bank 20,000,000.00

Less Set-Aside Native Americans (Carryover) 19,842,199.73

Less Set-Aside Domestic Lamb Asst 5,000,000.00

Less National Office Unrestricted Reserve 176,447,208.74

Allocated to States 903,504,000.08

2\. **[Missouri\'s Allocation]{.underline}** - \$22,818,000 has been
allocated to Missouri. Area Office allocations are shown in Exhibit A,
Page 12.

3**.** **[National Office Unrestricted Reserve]{.underline}**

a\. Funds will be allocated on a monthly competitive basis for projects
that best meet the Agency priorities. Highest priority projects must be
funded with State allocation to the extent possible.

To request funds from the National Office reserve, the following must be
submitted to the State Office: (1) a Project Information/Fund Request
Sheet using the format on page 13 of this exhibit and (2) a copy of
Appendix C of RD Instruction 4279-B, Priority Points Scoring using the
format shown on pages 14-16 of this exhibit. The State Office will
prepare a list of projects funded this fiscal year and a list of
applications currently on hand using the format on page 17 of this
exhibit. It is, therefore, very important that all applications are
properly updated in RCFTS.

b\. Requests for National Office reserve funds must be received in the
National Office by the third Tuesday of the month to be considered for
funding by the first Tuesday of the following month. These requests must
be received in the State Office by the second Tuesday of the month.

For projects not selected for funding, Area Office employees should
contact the lender to advise them and determine if the lender wants the
project to be reconsidered in the next monthly funding cycle.

Missouri AN No.1387(1940-L)

Exhibit A --- Page 4

> 4\. [**RCFTS Monitoring**]{.underline} - As part of the National
> Office effort to monitor RCFTS and submission of post review material,
> an electronic copy of a completed Project Information/Fund Request and
> other documents must be submitted to the State Office, for all B&I
> loans obligated when the Conditional Commitment is accepted. Refer to
> page 1 of Exhibit E of this AN
>
> 5\. **[Pooling of Funds]{.underline}** -- Funds that do not have an
> obligation date by June 30, 2002 will be pooled and revert to the
> National Office reserve. The pooled money will be available to all
> states on a competitive basis.
>
> **An emergency pooling of funds may be necessary to replenish the
> National Office Reserve. If such a pooling becomes necessary, 30 days
> advance notice will be given.**
>
> Send a copy of all Forms RD 1940-10, Cancellation of Obligation, to
> the State Office for any de-obligations processed. These must be
> submitted to the National Office by the State Office.
>
> 6\. **[Certified Lender Program (CLP).]{.underline}** The B&I
> regulations provide that a state may hold an amount of guaranteed
> funds in reserve for a certified lender, equal to a proposed loan, for
> 30 days pending receipt of the application from the lender, however,
> no guarantee authority will be held in reserve after the National
> Office pooling. The request should include the lender name, the
> project name, amount of loan and purpose of loan. **[National Office
> reserve funds can not be requested for this purpose nor can the State
> request money from the reserve if the State has funds
> outstanding.]{.underline}**
>
> 7\. **[Percentage of B&I Loan Guarantee Over 80% and 1% Guarantee
> Fees]{.underline}**

A limited amount of the annual national allocation for the B&I
guaranteed loan program will be obligated with a percentage of guarantee
exceeding 80%. All requests for authority to approve loans having a
percentage of guarantee exceeding 80% will be submitted to the National
Office before the obligation of funds can be processed.

> Regulations provide for guaranteed fees of one percent and two
> percent. All projects requesting a one percent guaranteed fee will
> have to be submitted to the National Office before the obligation can
> be processed.
>
> 75% of the funds for EZ/EC/REAP have been reserved to be obligated at
> a percentage of guarantee in excess of 80% and 12% of the funds with a
> guarantee fee of 1%.

Missouri AN No. 1387(1940-L)

Exhibit A --- Page 5

Request must be in the National Office by the third Tuesday of the month
to be processed by the first Tuesday of the following month.

> It is our intention in Missouri to emphasize 80% guarantees and 2%
> guarantee fees. If there is a request otherwise, a decision will be
> made on a case-by-case basis.
>
> **B. [Rural Business Enterprise Grants (RBEG)]{.underline}**

1\. Amount Available Nationally \$41,000,000

Less Earmark EZ/EC and REAP 7,000,000

Less Earmark for Native Americans \` 2,750,000

Less Earmark for Mississippi Delta 1,000,000

Less Passenger Transportation 500,000

Less Passenger Transportation-Native Americans 250,000

Less TV Demonstration 2,000,000

Less National Office Unrestricted Reserve 2,128,000

Allocated to the States 25,372,000

> 2\. **[Missouri\'s Allocation]{.underline}** - \$689,000 has been
> allocated to Missouri. \$78,700 of this amount has been allocated to
> each Area Office except Area 6 which received \$79,000 for a total for
> the State of \$551,200. The remaining \$137,800 will remain in the
> State Office for possible conversion to B&I Guaranteed funds.
>
> 3\. Reserve funds will be allocated to States for projects which best
> meet Agency priorities. Highest priority projects must be funded with
> State allocations. Set-aside funds can be requested from the National
> Office in the same manner as regular funds.
>
> Additional funds should be requested by submitting a copy of the
> Priority Score Sheet (page 23 of this exhibit) and a Project
> Information/Fund Request sheet (page 13 of this exhibit). A State
> Project List that will be prepared by the State Office (Page 22).
>
> 4\. There will be two funding cycles for the National Office reserve:
> February 15, 2002 and June 28, 2002.
>
> 5\. All RBEG funds (except the 20% set aside for conversion to the B&I
> guaranteed program), need to be obligated before the National Office
> reserve can be accessed.
>
> 6\. **[Pooling of Funds]{.underline}**
>
> All funds will be pooled June 30, 2002 except for Native Americans and
> MS Delta.
>
> The final funding cycle for Lower MS Delta will be August 30, 2002.
> Any funds remaining can be carried over to FY 2003.

Missouri AN No. 1387(1940-L)

Exhibit A - Page 6

**III. [Funds Not Distributed to States]{.underline}**

> **A**. **[Mississippi Delta Earmark Funds]{.underline}**
>
> 1\. Funds will be used where at least 75% of the benefits of a project
> will be received by residents within one or more Lower MS Delta
> designated counties.
>
> Twenty-nine (29) counties in Missouri have been designated. They
> include: Bollinger, Butler, Cape Girardeau, Carter, Crawford, Dent,
> Douglas, Dunklin, Howell, Iron, Madison, Mississippi, New Madrid,
> Oregon, Ozark, Pemiscot, Perry, Phelps, Reynolds, Ripley, Ste.
> Genevieve, St. Francois, Scott, Shannon, Stoddard, Texas, Washington,
> Wayne and Wright.
>
> 2\. Earmarked funds are retained in the National Office reserve. The
> following amounts
>
> are available nationally for this fiscal year. Any unused funds,
> except IRP, can be carried over to FY2003.

Intermediary Relending Program \$7,981,948.62

Rural Business Enterprise Grant 1,000,000.00

Rural Business Opportunity Grant 1,000,000.00

> Any request for these funds should clearly document how the specific
> criteria qualifies for the earmarked funds.
>
> **B.** **[Empowerment Zone/Enterprise Community/Rural Economic Area
> Partnerships (EZ/EC/REAP]{.underline})** The City of East Prairie is
> the only community currently eligible for these earmarked funds.
>
> 1\. Earmarked funds will be retained in the National Office reserve
> and are available until June 30, 2002 (must have obligation date of no
> later than June 30 2002). The following amounts are available for
> national competition:

B&I Guaranteed Loans \$27,540,106.95

IRP Loans 6,317,981.94

RBEG 7,000,000.00

RBOG [1,000,000.00]{.underline}

#######  TOTAL \$41,858,088.89

> 2\. When requesting earmarked money, copies of the benchmark documents
> identifying the project and the specific benchmark number will need to
> be part of the documents submitted. At least 75% of the benefits of a
> project will be received by residents within the EZ/EC/REAP census
> tract boundaries.
>
> Missouri AN No. 1387(1940-L)
>
> Exhibit A - Page 7
>
> 3\. If a community elects to amend their strategic plan and benchmark
> documents to reflect a project, it would not be eligible for
> competition until after the project is adopted by the community,
> approved by the State Director and entered into the Office of
> Community Development benchmark tracking system.
>
> 4\. [NOTE]{.underline}: Areas designated as Rural Economic Area
> Partnerships (REAPS) are also part of these earmarked funds, however,
> Missouri has no REAP designated areas.

# C. [Intermediary Relending Program]{.underline}

> 1\. Funds available for FY 02 \$38,171,719.49
>
> Earmark for EZ/EC & REAP 6,317,981.94
>
> Earmark for Native Americans 3,989,817.17
>
> Earmark for Lower MS Delta 7,981,948.62
>
> 2\. All funds are retained in the National Office. Applications must
> be received by the Agency prior to the first day of a quarter (10/1 -
> 1/1 - 4/1 - 7/1) to be considered during that quarter. Applications
> will continue to be considered each quarter until it is selected for
> funding or has been considered in four consecutive quarterly cycles.
>
> 3\. Due to the large demand for this program, the following loan
> initiatives are being implemented for applications approved this
> fiscal year:

[Initial Loan Application]{.underline}: The loan is limited to a maximum
of \$750,000 [unless]{.underline}:

\- the service area is not covered by another intermediary

\- the State has not received any IRP funding the last two fiscal years,
and

> the proposed service area is an under-served area as defined in the
>
> National/State Strategic Plan.
>
> In cases where all three of the above criteria are met and this is an
> initial loan application, a maximum loan of \$1 Million will be
> considered.
>
> [Subsequent Loan Application]{.underline}: All subsequent loan
> applications will be limited to a maximum of \$750,000.

4\. Requests for funds must be received in the National Office by the
end of the first month following the end of the quarter in which the
application was received. Requests for IRP funding must include
applicant\'s name, applicant location, date application received in RD
office, administrator\'s points justification (see section 4274.344
(C)(6), a priority score sheet (pages 19-21 of this Exhibit) and a
Project Information Fund Request Sheet (Page 13 of this Exhibit). This
information should be e-mailed to the State Office.

> When considering Administrator points, based on severe economic
> problems, the key factor is whether the service area has experienced
> [long-term]{.underline} (over the last 60 years) poverty, population
> decline or job deterioration.

Missouri AN No. 1387(1940-L)

Exhibit A -- Page 8

> 5\. IRP funds earmarked for EZ/EC/REAP, Mississippi Delta, or Native
> American Tribes may be requested in the same manner. Funds earmarked
> for Native Americans and the Mississippi Delta will not be pooled.
> EZ/EC/REAP earmarked funds will be pooled June 30, 2002 and revert to
> the regular IRP reserve.
>
> **D.** **[Rural Economic Development Loan Program]{.underline}**
>
> 1\. \$14,966,887.41 is available nationally for Fiscal Year 2002.
>
> 2\. Funds are retained in the National Office. Applications will be
> processed in the field offices, however, the selection of projects
> will be made in the National Office based on national competition.
>
> Applications and requests for funds must be received in the National
> Office prior to the first day of a quarter (10/1 - 1/1 - 4/1 - 7/1) to
> be considered each quarter until selected for funding or considered in
> four consecutive quarterly cycles. Applications should be submitted to
> the State Office for scoring at least two weeks prior to the funding
> cycle.

3\. The maximum loan for any one project funded in FY02 will be
\$450,000.

> **E.** **[Rural Economic Development Grant Program]{.underline}**
>
> 1\. \$4,000,000 is available nationally for Fiscal Year 2002.
>
> 2\. Funds are retained in the National Office. Applications will be
> processed in the field offices, however, the selection of projects
> will be made in the National Office based on national competition.
>
> Applications and requests for funds must be received in the National
> Office prior to the first day of a quarter (10/1 - 1/1 - 4/1 - 7/1) to
> be considered each quarter until selected for funding or considered in
> four consecutive quarterly cycles. Applications should be submitted to
> the State Office for scoring at least two weeks prior to the funding
> cycle.
>
> 3\. The maximum grant for any one project funded during FY2002 will be
> \$200,000.
>
> 4\. Due to the limited funding for this program, approximately
> \$1,000,000 will be allocated nationally each quarter.
>
> Missouri AN No. 1387(1940-L)
>
> Exhibit A --- Page 9

**F. Rural Business Opportunity Grant (RBOG)**

> \$5,100,000 is available for FY02. This amount includes \$1,000,000
> earmarked for Native Americans, \$1,000,000 earmarked for EZ/EC/REAP
> and \$1,000,000 earmarked for Mississippi Delta Region Counties.
>
> In order to better distribute the limited funds, no more than \$50,000
> can be allocated to a single applicant/project. This limit does not
> apply to earmarked funds. Third-party in-kind contributions can not be
> included in calculations for the leveraging priority criteria.
>
> Except for Native American and Mississippi Delta earmarks, funds must
> have an obligation date of no later than June 30, 2002. These
> earmarked funds will not be pooled.
>
> **G.** **[North America Development Bank (NADBank)
> Initiative]{.underline}**
>
> 1\. Loans under this authority are to be processed in accordance with
> the Memorandum of Understanding between USDA and Treasury. Guidelines
> for the Community Adjustment and Investment Program (CAIP) are the RD
> Instructions 4279-A and 4279-B and processed as if they were regular
> B&I projects.
>
> 2\. Exceptions include: (1) provision that NADBank may pay the
> guarantee fee on behalf of the lender or the borrower; (2) the
> \$70,000 cost per job ceiling (computed on the guaranteed portion);
> and (3) the requirement that debt refinancing is restricted to less
> than half of the total loan amount are also exceptions to 4279-A and
> 4279-B.

3\. NADBank eligible counties in Missouri include: Benton, Carter,
Crawford, Pemiscot, St. Francois, Texas, Wright, Dallas and Miller.
(http://www.nadbank-caip.org)

4\. To request funds from this set-aside program, the Area Office must
complete the form on pages 27-30 of this exhibit.

Missouri AN No. 1387(1940-L)

Exhibit A - Page 10

**H**. **[The Armament Retooling and Manufacturing Support (ARMS)
Initiative]{.underline}**

> 1\. The only eligible area in Missouri includes Lake City Munitions
> Facility north of Independence, Missouri.

2\. Loans are to be processed under provisions of the Memorandum of
Understanding between USDA-RBS and the Army and RD Instruction 4279-A
and 4279-B. Provisions of the MOU take precedence over the regulations.
States do not have approval authority, therefore, all requests,
including the complete case file, will be forwarded to the National
Office with recommendations and request for approval authority.

**I. [Integrated Plant, Feedlot, and Animal Waste Digestion
Unit]{.underline}.**

A total of \$3,000,000 of earmarked Rural Community Advancement Program
funds are available for a grant for an integrated ethanol plant,
feedlot, and animal waste digestion unit, to the extent matching funds
from the Department of Energy are committed to the project prior to July
1, 2002.

**J. [Federal Home Loan Bank System Set Aside]{.underline}**

1\. There is a \$20,000,000 National Office set-aside for obligation of
B&I Guaranteed loans made under the Memorandum of Understanding between
the Federal Home Loan Bank System and Rural Development. Loans must be
processed under RD Instructions 4279-A and 4279-B. Provisions of the MOU
take precedence.

2\. Any funds not used will be pooled on August 30, 2002 and will be
available from the National Office reserves for the regular Guaranteed
Loan program.

3\. Request for funds under this program must be submitted using the
format on page 13 of this exhibit.

4\. Eligible areas for these funds are the targeted areas of the State.
The targeted

> counties are included in the State Strategic Plan for C&BP.
>
> **K.** **[Domestic Lamb Assistance]{.underline}**

1\. There is a \$5,000,000 National Office set-aside for obligation of
B&I Guaranteed Loan funds for assistance to finance real estate
purchases and improvements, working capital, debt refinancing and
equipment in domestic lamb packing and processing plans.

> Missouri AN 1387(1940-L)
>
> Exhibit A -- Page 11

2\. The National Office has told us there are very few domestic lamb
packing and processing plants in the Nation. There are none in Missouri,
therefore, this program probably won\'t be applicable to Missouri.

> **L**. **[Television Demonstration Grants (TV Demo)]{.underline}** -
> Missouri is not a state currently eligible to receive TV Demo funding.
>
> **M**. **[Transportation.]{.underline}** There are two earmarks from
> RBEG funds held in the National Office reserve. A \$500,000 earmark
> and a \$250,000 Native American earmark are available for the purpose
> of providing technical assistance for rural public transportation. A
> public notice inviting preapplications for the rural transportation
> program is anticipated to be published in the Federal Register early
> in the calendar year. That publication will also establish a time
> schedule for accepting and processing the preapplications.
>
> Missouri AN No. 1387(1940-L)
>
> Exhibit A --- Page 12

BUSINESS & INDUSTRY AND

RURAL BUSINESS ENTERPRISE GRANT

AREA OFFICE ALLOCATIONS

FISCAL YEAR 2002

+-----------------+-----------------+-----------------+-----------------+
| [Ar             | [Dire           | [Guarante       | [RB             |
| ea]{.underline} | ct]{.underline} | ed]{.underline} | EG]{.underline} |
|                 |                 |                 |                 |
| [Offi           | [Loan -         | [Loan -         | [Gra            |
| ce]{.underline} | B               | B               | nt]{.underline} |
|                 | &I]{.underline} | &I]{.underline} |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| St. Joseph      | \$ 0            | \$ 3,260,000    | \$ 78,700       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Kirksville      | \$ 0            | \$3,260,000     | \$ 78,700       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Clinton         | \$ 0            | \$3,260,000     | \$ 78,700       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Farmington      | \$ 0            | \$3,258,000     | \$ 78,700       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Springfield     | \$ 0            | \$3,260,000     | \$ 78,700       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Houston         | \$ 0            | \$3,260,000     | \$ 79,000       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Dexter          | \$ 0            | \$3,260,000     | \$ 78,700       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| S/O Reserve:    | \$              | \$              | \$[137,800      |
|                 | [0]{.underline} | [0]{.underline} | ]{.underline}\* |
+-----------------+-----------------+-----------------+-----------------+
| Totals          | \$ 0            | \$22,818,000    | \$689,000       |
+-----------------+-----------------+-----------------+-----------------+

\* RBEG Reserve will be held for conversion to B&I Guaranteed Loan Funds
if

needed later in the FY

> MO AN No. 1387(1940-L)
>
> Exhibit A -- Page 13

Rural Business-Cooperative Service

Business Programs

# PROJECT INFORMATION/FUND REQUEST SHEET

Program:

Applicant Name:

Project Location (City, County, State):

Funding: National Office-\$ State Office-\$

Source of Funding: National Reserve EZ/EC/REAP

TV Demo Native American

MS Delta Transportation FHLB Domestic Lamb\_\_\_\_

Terms (only B&I): 1% Fee 1% EZ/EC Fee

90% Guarantee 1% Fee & 90% Guarantee

Leveraging (Supplemental Financing)

Amount: From

Amount: From

Total

Category: Technical Assistance Revolving Loan Fund

Business Incubator Other Business Dev.

Working Capital Machinery & Equip. Real Estate

Debt Refinancing Miscellaneous Programs

Number of Jobs Created/Saved: Created Saved

Number of Businesses Assisted: Number Comments:

Senators:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Representative: District Number:

Project Description

Administrator Discretionary Points (Not Available to RBEG): Yes No

####### Explain\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> MO AN 1387(1940-L)

Exhibit A, Page 14

RD Instruction 4279-B

Appendix C

Page 1

## BUSINESS AND INDUSTRY

*APPLICATION PRIORITY POINTS SCORING*

*Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*Name \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*State \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*List the maximum points the applicant is eligible for under each
category. See § 4279.155 of this subpart for information on how to
determine points.*

*1. [Population priority]{.underline}.*

Located in an unincorporated area or in a city with under 25,000
population. (10 points)

\_\_\_ \_\_\_\_

*2. [Community priority]{.underline}.*

*A. Located in an eligible area of long term population decline*

*and job deterioration based on reliable statistical data.*

*(5 points)*

*B. Located in a rural community that has remained persistently*

poor over the last 60 years. (5 points) \_\_\_\_

*C. Located in a rural community that is experiencing trauma as*

*the result of a natural disaster or experiencing fundamental structural
changes in its economic base. (5 points) \_\_\_\_*

*D. Located in a city or county with an unemployment rate 125 percent of
the statewide rate or greater. (5 points)*

*\_*

*3. [Empowerment Zone/Enterprise Community (EZ/EC)]{.underline}. (Cannot
exceed a total of 10 points).*

A. Located in EZ/EC designated area. (10 points) \_\_\_

*B. Located in a non-designated EZ/EC applicant community.*

(5 points) \_\_\_\_

MO AN No. 1387(1940-L)

Exhibit A, Page 15

RD Instruction 4279-B

Appendix C

Page 2

*4. [Loan features]{.underline}.*

*A. Lender will price the loan at the Wall Street Journal*

*published Prime Rate plus 1.5 percent or less. (5 points) \_\_\_\_*

*B. Lender will price the loan at the Wall Street Journal*

published Prime Rate plus 1 percent or less. (5 points)

\_\_

*C. The Agency guaranteed loan is less than 50 percent of*

project cost. (5 points) \_\_\_\_

*D. Percentage of guarantee is 10 or more percentage points less than
the maximum allowable for a loan of its size. (5 points) \_\_\_*

5\. [High impact business investment priorities]{.underline} (Total
score for the following three categories:

*A. [Industry]{.underline}.*

*(i) Industry that has 20 percent or more of its sales in international
attractions. (5 points) \_\_\_\_*

*(ii) Industry that is not already present in the*

*community. (5 points) \_\_\_\_*

*B. [Business]{.underline}.*

*(i) Business that offers high value, specialized*

*products and services that command high prices.*

*(2 points) \_*

*(ii) Business that provides an additional market for*

*existing local businesses. (3 points) \_*

*(iii) Business that is locally owned and managed.*

*(3 points) (iv) Business that will produce a natural resource
value-added product. (2 points)*

> MO AN No. 1387(1940-L)
>
> Exhibit A, Page 16

RD Instruction 4279-B

Appendix C

Page 3

*C. [Occupations]{.underline} (Cannot exceed 10 points).*

*(i) Business that creates jobs with an average wage*

*exceeding 125 percent of the Federal minimum wage.*

*(5 points) \_\_*

*(ii) Business that creates jobs with an average wage*

*exceeding 150 percent of the Federal minimum wage.*

*(10 points) \_\_\_\_*

*6. State Director\'s administrative points: (May be up to*

*10 points). Attach justification. \_\_\_\_*

*Total points \_\_\_\_*

*\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*Signature Date*

*\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*Title*

> MO AN No. 1387(1940-L)
>
> Exhibit A, Page 17
>
> RD Instruction 1940-L

Exhibit A, Attachment 1

Page 22

BUSINESS AND INDUSTRY GUARANTEED LOAN PROGRAM

NATIONAL OFFICE RESERVE PRIORITY PROJECT SCORING INFORMATION SHEET

Projects Obligated in Fiscal Year 2002 to Date:

Per RD Instruction 1940-L, Exhibit A, Attachment 1, page 11, highest

priority projects must be funded with State allocations to the extent

possible.

A listing of all applications on hand indicating the date each was
received, current status, priority score, and a brief explanation of why
it was funded in the order in which it was presented or has not yet been
funded is to be provided. For example, if a project with a lower
priority score is funded ahead of a project with a higher priority
score, you will need to provide an explanation of why this was done.

A copy of Appendix C of RD Instruction 4279-B (page 23-25 of this
attachment should be attached to the memorandum.

  -------------- -------------- -------------- -------------- --------------
  Name           Priority Score Amount         Date App. Rec. Date Obligated

                                                              

                                                              

                                                              

                                                              
  -------------- -------------- -------------- -------------- --------------

Projects Requested to be Obligated from the National Office Reserve:

  ----------------- ----------------- ----------------- -----------------
  Name              Priority Score    Amount            Date App. Rec.

                                                        

                                                        

                                                        

                                                        

                                                        
  ----------------- ----------------- ----------------- -----------------

If a project with a lower priority score was funded ahead of a project
with a higher priority score, provide an explanation of why this was
done.

If Administrator's priority points are being requested, provide an
explanation why such points should be considered.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

MO AN No. 1387(1940-L)

Exhibit A, Page 18

RD Instruction 4284-G

Exhibit B

## PRIORITY SCORE - RBOG APPLICATION

*Name of Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*State: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*(a) Sustainable Economic Development Points \_\_\_\_\_*

*(b) Quality of Economic Activity Points \_\_\_\_\_*

*(c) Leveraging Points \_\_\_\_\_*

*(d) (1) Natural Disaster Points \_\_\_\_\_*

*(2) Military Base/Employer Points \_\_\_\_\_*

*(3) Long-term poverty Points \_\_\_\_\_*

*(4) Long-term population Loss Points \_\_\_\_\_*

*(5) Long-term Job Loss Points \_\_\_\_\_*

*Subtotal Points \_\_\_\_\_*

*(e) Best Practice Points \_\_\_\_\_*

*(f) State Director Discretionary Points \_\_\_\_\_*

***TOTAL**\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....
**\_\_\_\_\_***

***Administrator Discretionary Points \_\_\_\_\_\_***

***GRAND TOTAL
..............................\_\_\_\_\_\_\_\_\_\_\_\_\_***

MO AN No. 1387(1940-L)

Exhibit A, Page 19

RD Instruction 4274-D

Exhibit C

*PRIORITY SCORESHEET*

*Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*State:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

*List the maximum points the applicant is eligible for in each category,
in accordance with* § *4274.344(c) of this Instruction.*

*(1) Other Funds:*

*(i) Outside loan and grant funds.*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*(ii) Intermediary funds.*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*Total other funds points (Max.
25)\...\...\...\...\...\...\...\_\_\_\_\_\_\_\_\_*

*(2) Employment:*

*(i) Updated median household income, service area\_\_\_\_\_\_*

*Poverty line, family of four \_\_\_\_\_\_\_\_\_*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*(ii) Income within State.*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*(iii) Unemployment rate, service area\_\_\_\_\_*

*Unemployment rate, National\_\_\_\_\_*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*(iv) Low-income families*

*Percent Points\_\_\_\_\_*

*(v) Underrepresented groups*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*(vi) Outmigration*

*Percent\_\_\_\_\_ Points\_\_\_\_\_*

*Total employment points*

*(Max.90)\...\...\...\...\...\...\...\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_*

MO AN No. 1387(1940-L)

Exhibit A, Page 20

RD Instruction 4274-D

Exhibit C

Page 2

*(3) Intermediary contribution:*

*Percent\_\_\_\_\_ Points (Max. 50)*

*(4) Experience:*

*Years\_\_\_\_\_ Points (Max. 30)*

*(5) Community representation:*

*Percent\_\_\_\_\_ Points (Max. 15)*

*(6) Administrative: Points (Max. 35)*

*TOTAL POINTS\...\...\...\...\...\...\...\...\...\..... \_\_\_\_\_*

MO AN No. 1387(1940-L)

Exhibit A, Page 21

##### 

##### Revised Guide for Recommending Administrative Points

**[for Fiscal Year 2002 IRP Applications]{.smallcaps}**

Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

State: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

####  Administrative Point Criteria

*(Points)* **Score**

1\. [Assuming there is adequate documentation of need for the\
amount requested, applications for \$500,000 or less]{.underline}: *[4
pts]{.underline}* \_\_\_\_\_

2\. [A particularly successful business development record]{.underline}\
[and/or excellent utilization of a previous IRP loan]{.underline}: *[4
pts]{.underline}* \_\_\_\_\_

3\. [A service area with no other IRP coverage]{.underline}:\
(Disregard coverage by multi-State intermediaries or\
intermediaries that specialize in indirect business-related\
financing, such as only loans for water/sewer or for\
transportation.

> No coverage: *[15 pts]{.underline}* \_\_\_\_\_
>
> Some: *[5 pts]{.underline}* \_\_\_\_\_

4\. [A service area with severe economic problems]{.underline}:\
Such as communities that have remained persistently\
poor over the last 60 years or have experienced long-\
term population decline or job deterioration. *[5 pts]{.underline}
\_\_\_\_\_*

5\. [A service area with emergency conditions caused by]{.underline}\
[a natural disaster or loss of a major industry]{.underline}: *[2
pts]{.underline}* \_\_\_\_\_

6.  [A work plan that is in accord with a strategic plan]{.underline}:\
    Particularly a plan prepared as part of a request for\
    an Empowerment Zone/Enterprise Community\
    designation or Champion Community or work plan

identified in State Office Strategic Plans. *[5 pts]{.underline}*
\_\_\_\_\_

Any combination may be used up to the maximum of 35 points.

Total Administrative Points Awarded: \_\_\_\_\_

+--------------------------------------+----+----+------+---+--------+
| **MO AN No. 1387(1940-L)**           |    |    |      |   |        |
|                                      |    |    |      |   |        |
| **Exhibit A, Page 22**               |    |    |      |   |        |
|                                      |    |    |      |   |        |
| **RURAL BUSINESS ENTERPRISE GRANT**  |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **STATE PROJECT LIST**               |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **FISCAL YEAR 2002**                 |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **STATE: Missouri**                  |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Date:**                            |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **State Allocation: \$689,000**      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      | *  | *  | *    | * | **     |
|                                      | *P | *S | *Gra | * | Obliga |
|                                      | ro | ta | nt** | S | tion** |
|                                      | je | te |      | t |        |
|                                      | ct | ** |      | a |        |
|                                      | ** |    |      | t |        |
|                                      |    |    |      | e |        |
|                                      |    |    |      | * |        |
|                                      |    |    |      | * |        |
+--------------------------------------+----+----+------+---+--------+
| **Applicant**                        | ** | ** | **   | * | **     |
|                                      | Ty | Pr | Amou | * | Date** |
|                                      | pe | io | nt** | P |        |
|                                      | ** | ri |      | o |        |
|                                      |    | ty |      | i |        |
|                                      |    | ** |      | n |        |
|                                      |    |    |      | t |        |
|                                      |    |    |      | s |        |
|                                      |    |    |      | * |        |
|                                      |    |    |      | * |        |
+--------------------------------------+----+----+------+---+--------+
| **Projects Funded with the State     |    |    |      |   |        |
| Office Allocation:**                 |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Total**                            |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Projects Submitted For Funding     |    |    |      |   |        |
| From the N/O Reserve:**              |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| (This includes TV Demo)              |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Total**                            |    |    | **   |   |        |
|                                      |    |    | \$** |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Projects Submitted for Earmark     |    |    |      |   |        |
| Funding:**                           |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| (This includes EZ/EC, REAP,          |    |    |      |   |        |
| Transportation, Native American,     |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| and Mississippi Delta earmarks.      |    |    |      | \ |        |
| Please identify the project          |    |    |      | $ |        |
+--------------------------------------+----+----+------+---+--------+
| type in the column to the right.)    |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Total**                            |    |    | **   |   |        |
|                                      |    |    | \$** |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Projects on Hand in State Office   |    |    |      |   |        |
| (No Funding Available):**            |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    | \$   |   |        |
+--------------------------------------+----+----+------+---+--------+
| **Total**                            |    |    | **   |   |        |
|                                      |    |    | \$** |   |        |
+--------------------------------------+----+----+------+---+--------+
|                                      |    |    |      |   |        |
+--------------------------------------+----+----+------+---+--------+
| **RCAP Reserve (up to 20 percent     |    |    | **   |   |        |
| ):**                                 |    |    | \$** |   |        |
+--------------------------------------+----+----+------+---+--------+

MO AN No. 1387(1940-L)

Exhibit A, Page 23

RD Instruction 1942-G

Attachment 1 Page 17

## Section C

## Rural Business Enterprise and Television Demonstration Grant Program

## Project Selection Criteria

Project Score \_\_\_\_\_\_\_\_\_\_\_\_\_

Name of
Applicant\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

State \_\_\_\_\_\_\_\_\_
County\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Grant \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Initial or Subsequent
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Amount of previous FmHA funding for this project
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Purpose: Revolving Fund: \|\_\| Technical Assistance: \|\_\|

Industrial Site: \|\_\| Other Business Development: \|\_\|

Brief description of the proposed facility:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[Priorities]{.underline} [Points]{.underline}

A. [Population]{.underline}.

Proposed project is located in a rural

community having a population:

Between 15,000 and 25,000 5

Between 5,000 and 15,000 10

Under 5,000 15

MO AN No. 1387(1940-L)

Exhibit A, Page 24

RD Instruction 1942-G

Attachment 1, Page 18

B. [Economic conditions]{.underline}.

1\. Proposed project will be located in areas\
where the unemployment rate exceeds the State\
unemployment rate by:

a\. 25 percent or more 20

b\. less than 25 percen 10

c\. equal to or less than State rate 0

2\. Proposed project will be located in areas\
where the median household income (MHI) of the\
population to be served by the proposed\
facility is:

a\. Less than the poverty line for a family\
of four as prescribed by Section 673 (2) of\
the Community Services Block Grant Act\
(42 U.S.C. 9902 (2)). 25

b\. More than the poverty line and less than\
85 percent of the State\'s MHI. 15

c\. More than the poverty line and between 85\
percent and 100 percent of the State\'s MHI. 10

d\. Equal or greater than State MHI. 0

C. [Experience]{.underline}. Applicant has substantial experience\
in administering a rural economic development program. 10

D. [Other]{.underline}.

1.  Applicant has written evidence of commitment\
    from small business that small business development

will occur by startup or expansion a result of the

grant. 25

2\. Grant request contains evidence that a\
substantial commitment of funds from nonfederal\
sources for proposed project is:

a\. more than 50 percent 15

b.  more than 25 percent and

less than 50 percent 10 c. between 5 percent and 25 percent 5

3.  For grants to establish a revolving fund,\
    or grant request contains proposed third\
    party recipients. 25

MO AN No. 1387(1940-L)

Exhibit A, Page 25

RD Instruction 1942-G

Attachment 1, Page 19

4\. The proposed project will create and/or

save jobs at:

a\. one job per each \$10,000 or less

in grant funds expended 10

b\. one job per each \$25,000 to \$10,000

in grant funds expended 5

5\. Proposed project is consistent with, and

is reflected in, local plans for the area. 5

6\. Grant projects utilizing funds available

under this subpart are:

a\. less than \$100,000 25

b\. \$100,000 to \$200,000 15

c\. more than \$200,000 to \$500,000 10

7\. Grant for television demonstration programs

contains justification for a need for the

information to be provided through the project

is provided. 25

E. [Discretionary points]{.underline} for initial grants of not more

than \$500,000 (up to 50). Give written justification. \_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Director, Community and Business Programs Date

Directions: Complete the information requested on Page 16 of this
Attachment. In paragraphs A-D of Section C, circle the points for those
priorities which apply to, and are met by, the preapplication under
consideration. Determine and justify the number of discretionary points,
if any, to be awarded in paragraph E of Section C of this Attachment and
add up the total number of points scored.

MO AN No. 1387(1940-L)

Exhibit A, Page 26

RD Instruction 1942-G

Attachment 1, Page 20

TO: Administrator, FmHA

Washington, DC 20250

Attention: \_\_\_\_\_\_\_\_\_\_\_\_\_\_ Community Facilities Division

State: \_\_\_\_\_\_\_\_\_\_\_

Name of

Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

A. Amount of additional funds requested: Grant
\$\_\_\_\_\_\_\_\_\_\_\_\_\_

B. State the priority of this project in relation to all others on hand
at the time of submission to the National Office. (Attach a revised
priority listing for previously submitted projects, if necessary.)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

C. Is this project ready for obligation? \_\_\_\_\_Yes \_\_\_\_\_ No.

If no, give estimated date project will be ready for obligation of
funds.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

D. If other funds are involved in this project, have they been
committed? \_\_\_\_Yes \_\_\_\_No.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

State Director Date

Directions: To request an allocation of funds from the National Office,
State Offices should complete this part of Attachment 1, Section C,
attach it to the project selection criteria, and submit both to the
National Office.

> MO AN No. 1387(1940-L)
>
> Exhibit A, Page 27
>
> RD Instruction 1940-L

Exhibit A, Attachment 1

Page 35

### ENDORSEMENT CHECKLIST FOR THE CAIP FINANCE COMMITTEE

**Borrower/Entity Type: (Name of entity goes here)**

**Location:** City, State,
(County)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Area Eligibility:** \[You need to choose the correct description of
why the area is eligible. In some cases you will need to access data on
the Internet and fully discuss why the area is eligible. You should use
some variant of ONE of the following three statements, each of which
meets the Finance Committee requirement for certification that the area
where the borrower will be applying the loan proceeds is eligible for
USDA under the CAIP. Beale Codes can be downloaded from the internet at:
[http://www.ers.usda.gov/data/sdp/view.asp?f=rural/89021/]{.underline}
Click on the ReadMe.doc link for an explanation of the codes and on the
link just below that for the actual codes.\]

> \[Unemployment data are available at:
> [http://naid.sppsr.ucla.edu/NADBANK/NDB_COLD_FUSION_ROOT/index.cfm]{.underline}
> \]
>
> This area has a rural Beale (Rural-Urban Continuum) Code and is an
> eligible area designated by the Finance Committee.
>
> This county has an urban Beale Code, but the area in which the new
> facility \[substitute the right description\] is being constructed is
> eligible for B&I loans and the county has an unemployment rate of
> \_\_\_ percent, which is at least 1 percent over the national average.
>
> This county has an urban Beale Code, but the area in which the new
> facility \[substitute the right description\] is being constructed is
> eligible for B&I loans and the Local Area Unemployment Statistics
> (LAUS) of the U.S. Department of Labor shows an unemployment rate of
> \_\_\_ percent for the immediate \_\_\_\_ \[locality or census
> tract\], which is at least 1 percent over the national average.

**Amount/Rate/Term:** \$(full \$ amount of loan) at \_\_% (variable
rate, Wall Street Journal Prime (or other benchmark) for \_\_ years)

**Case number:** (Case number as assigned by State Office)

**Loan Purpose:** Loan funds will be used to \.... (describe this in
detail, as in loan application, BUT include descriptions of:

\- any compelling reason for NADBank to pay the loan guarantee \[NOTE:
This will be extremely difficult to justify during FY2002, due to the
expense of the program.\],

> \- high unemployment rates in area,

-   putting a viable but endangered business on a sound footing,

-   if business will close imminently and how many jobs will be
    impacted,

MO AN No. 1387(1940-L)

Exhibit A, Page 28

RD Instruction 1940-L

Exhibit A, Attachment 1

Page 36

> \- if area has been highly impacted by NAFTA and what was the impact,

\- extent of importance of business to the economy of the area,

> \- high quality jobs with needed ?living wage? jobs for area families,
> if that is the case, or even low wage ?jobs? in an area with very high
> unemployment.

**NAICS Code:** (6 digits.)

**Percent guaranteed:** \_\_% requested by lender and approved by the
Agency .

**Guarantees/backing:** Personal guarantee(s) of: (name(s) and \$
amount(s), and some indication of personal net worth(s) to lend some
credibility to the guarantee(s))

**Source/Use of proceeds**: \[It is desired here that you reflect the
overall scope of the project and the partnering between different
sources of funding, not simply the B&I portion. Two formats are shown:
The first is for a simple financing structure with minimal amounts
contributed by the borrower or other entities. The second format is the
one the Finance Committee prefers when there is any significant
partnering. This shows uses on the left and the different sources as the
column headings to show how much from the different entities goes toward
each element of financing. Use the structure which makes sense for your
loan, bearing in mind that the willingness of other entities to invest
may influence the decision by the Finance Committee. PLEASE DO NOT USE
BOTH FORMATS AND PLEASE REMOVE THE UNDERLINING WHEN YOU INSERT AN ACTUAL
NUMBER IN PLACE OF A BLANK.\]

(Format 1)

**Uses: Sources**:

Land and Buildings\_\_\_\_\_\_ CAIP Loan\_\_\_\_\_\_\_\_\_\_\_

Machinery & equipment\_\_\_\_\_\_\_\_\_\_\_\_ Partner entity source
1\_\_\_\_\_\_\_\_

Working Capital\_\_\_\_\_\_\_\_\_\_ Borrower Funds\_\_\_\_\_\_\_\_\_\_

Debt Restructuring\_\_\_\_\_\_\_\_\_\_ Other funds \_\_\_\_\_\_\_\_\_\_

Etc. \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

#######  TOTAL\_\_\_\_\_\_\_\_\_\_ 

(Format 2)

**Uses: CAIP Loan: Borrower: Locality: Entity ?A?: Entity ?B?**:

Land: \$ 0 \$50,000 \$100,000

Buildings: 150,000 25,000 \$100,000

Machinery & equipment: 100,000

Debt Restructuring: 25,000 \$10,000

Working capital: 75,000 275,000

Guarantee/other fees: 7,200

**Totals:** \$357,200 \$350,000 \$100,000 \$100,000 \$10,000

**Total project cost**: \$917,200

MO AN No. 1387(1940-L)

Exhibit A, Page 29

RD Instruction 1940-L

Exhibit A, Attachment 1

Page 37

(In this hypothetical example, the borrower contributed land they
already owned (land having a discounted value of \$50,000), and the
local government, in order to attract jobs to the community, contributed
an adjoining parcel of land worth \$100,000. The CAIP loan financed
\$150,000 of new construction, the borrower contributed a usable
building already on the land worth \$25,000, and the county development
authority contributed financing of \$100,000. In terms of debt
restructuring, CAIP refinanced \$25,000 of existing indebtedness, and
the existing lender forgave \$10,000 of the debt in return for the
prompt payment. In actuality, total project financing may have multiple
lenders, including local utilities, REDLG loans, etc. One FY 1999 loan
request had 7 separate funding sources.)

**Collateral summary:** The loan will be secured with (describe the
collateral). The total discounted net collateral value is
\$\_\_\_\_\_\_\_\_\_\_\_.

**Tangible balance** As an existing business, this business meets the
\_\_% tangible

**Sheet equity:** balance sheet equity requirement. The Proforma at loan
closing shows \_\_\_\_% equity.

**Loan to job ratio/** Loan to job - \$\_\_\_\_\_\_\_\_\_ (loan amt)/
\_\_ (#)jobs = \$\_\_\_\_\_\_ per job.

**Income range of jobs:** guaranteed portion to job -
\$\_\_\_\_\_\_\_\_\_ (loan amt) X 80% guaranteed =
\$\_\_\_\_\_\_\_\_/\_\_ jobs = \$\_\_\_\_\_\_\_ per job. Wages average
about \$\_\_\_\_\_ per hour.

**Lender name/location:**
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Guarantee Fee:** \$\_\_\_\_\_\_\_\_\_\_ (loan amt) X 80% guaranteed X
.02 = \$\_\_\_\_\_\_\_

to be paid by lender

**Subsidy needed:** \$\_\_\_\_\_\_\_\_\_\_ (loan amt) X .0368(for FY
2002) =\$\_\_\_\_\_\_\_\_\_\_\_

**Total BA required** \$\_\_\_\_\_\_\_\_\_\_\_ {NOTE: This is the total
subsidy needed

PLUS the amount of guarantee fee you are requesting that NADBank pays.\]

**and BA per job:** \$\_\_\_\_\_\_\_\_ / \_\_ jobs = \$\_\_\_\_\_\_ per
job

**Recommended**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**WILLIAM F. HAGY III**

**Deputy Administrator, Business Programs**

**Concur**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**JOHN ROSSO**

**Acting Administrator**

MO AN No. 1387(1940-L)

Exhibit A, Page 30

RD Instruction 1940-L

Exhibit A, Attachment 1

Page 38

**Rural Business-Cooperative Service**

**APPROVED BY VOTE OF THE FINANCE COMMITTEE:**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**CHAIR DATE**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** YES \[ \]
**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** YES \[ \]

**Agriculture** NO \[ \] **Treasury** NO \[ \]

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** YES \[ \]

**Small Business Administration** NO \[ \]

\[Note: Please provide this Endorsement Checklist to Steve Levy as an
e-mail attachment to accelerate processing. Valid e-mail addresses are:
**levysteve@mail.com** (preferred) **and
[steve.levy@usda.gov.]{.underline}** Please provide in your e-mail
message (not in the Endorsement Checklist) the name and phone number of
the relevant State Office or District Office contacts so Steve knows to
whom to address questions.\]

*\_\_\_\_*

Missouri AN No. 1387(1940-L) Missouri AN No. 1387(1940-L)

> Exhibit B

**WATER AND WASTE DISPOSAL**

**I.** **[General Policies]{.underline}:**

> A. Every effort will be made to re-emphasize our original mission as a
> provider of supervised and affordable credit to communities with the
> greatest need. To the maximum extent possible, funds should be
> directed to the smallest communities with the lowest per capita
> incomes. This objective will be considered by the National Office when
> managing and distributing National Office reserves. The environmental
> requirements set forth in RUS Instruction 1794 apply to all Water and
> Waste projects.
>
> B. Priority should also be given to utilization of grant funds to
> areas which lack running water, flush toilets and modern sewage
> disposal systems and areas which have open sewers and high rates of
> disease caused by poor sanitation. Applicants, whose projects are
> necessary to meet the Environmental Protection Agency arsenic rule,
> should also receive priority. Champion Communities, as well as other
> targeted areas of the State, should also receive full consideration
> when planning for use of funds. Applicants should be referred to
> commercial sources of credit if your analysis indicates they may be
> able to obtain such credit and maintain reasonable user rates, in
> accordance with Section 1780.7(d) and Staff Instruction 1780-6.
>
> C. Continue to also emphasize the policy of regionalization,
> communities and systems working together to share water sources,
> treatment plants, etc. User rates must continue to be monitored. A
> rate of 1 ½% to 2% of the project's median household income is
> expected. Communication and coordination with DNR and CDBG at the Area
> Office level is extremely important. All new preapplications and/or
> applications received must go through the Missouri Water & Waste
> Review Committee (MWWRC), however, the Area Office should continue to
> build rapport with the potential applicant during this process to move
> the project along. Six copies of the proposal and the Preliminary
> Engineering Report are required and will be forwarded to CDBG so the
> proposals can be distributed to all applicable members of the MWWRC.
> The six copies should be sent to: Holly Dentner, Department of
> Economic Development, Community Development Block Grant Program, P. O.
> Box 118, Jefferson City, MO 65102.
>
> D. For FY 2002, water and waste guaranteed loan funds are being
> allocated to the States as well as the direct loan funds and grant
> funds. A guaranteed loan is not always appropriate, but may be a
> workable financing approach, or part of one, in some cases. Some
> states have less potential for building the guaranteed program than
> others. All states are expected to make serious efforts to use their
> guaranteed allocations and, if not successful, will provide
> documentation of those efforts.
>
> E. The Watershed; the Resource, Conservation & Development (RC&D); and
> the Emergency Community Water Assistance Grant (ECWAG) programs were
> not funded for FY02.
>
> Missouri AN No. 1387(1940-L)
>
> Exhibit B -- Page 2

**II.** **[Appropriations]{.underline}**

> A. A single budget authority of \$646,512,000 for the Water and Waste
> Direct loan and grant programs was appropriated under the Rural
> Community Advancement Program (RCAP). The program level amounts to be
> made available for direct loans and grants were then determined by the
> National Office based on anticipated needs for the year.
>
> B. In Missouri, allocations for Water and Waste Disposal direct loan
> funds, grant funds and loan guarantees are being made to the Area
> Offices in an effort for all rural areas of the
>
> entire State to have the opportunity to benefit from the State\'s
> allocation. These allocations are the [minimum]{.underline}
> expectations for the areas. In order to use all funds allocated to the
> State, **[all]{.underline}** employees should continue to promote this
> program and develop projects to the point of obligation of funds.
>
> Approximately 5% of the allocation will be kept in the State Office
> Reserve to be used as a match, or leverage, when requesting additional
> funds from the National Reserve. If necessary, loan and grant funds
> may be pooled after the National Office mid-year pooling. The National
> Office mid-year pooling is April 26, 2002.
>
> C. **[State Directors may transfer up to 25 percent]{.underline}** of
> their initial direct loan and grant allocations between the two
> accounts. The transfer of funds should be based on sound judgments, a
> thorough analysis of all available information and the State/National
> priorities. Transfer of grant to loan will increase the total amount
> of funds available which might result in serving a larger number of
> projects and/or users. However, serving more low income residents in
> sparsely populated areas may require a transfer from loan to grant to
> produce a higher level of grant funds. The impact of transferring
> funds is dependent on the **loan subsidy factor which is .0688.** The
> following examples show the impact of the maximum amount that can be
> transferred.

Maximum transfer of grant to direct loan:

\$11,361,000 - Initial grant allocation

\$ 2,840,250 - 25% of allocation

\$ 2,840,250 divided by .0688 = 41,282,703

\$41,282,703- Direct loan allocation increase

Maximum transfer from direct loan to grant:

\$20,694,000 - Initial direct loan allocation

\$ 5,173,500 - 25% of allocation

\$ 5,173,500 x .0688 = \$355,936

\$ 355,936 - Grant allocation increase

**Requests for transfers are limited to two during the year. The State
Office has to submit the requests to the National Office ten days before
the National pooling dates**.

Missouri AN No. 1387(1940-L)

Exhibit B --- Page 3

**III**. **[Allocations to Missouri]{.underline}**

A. Our State allocation is based on basically a 65% direct loan to 35%
grant ratio. Special effort will be needed to develop water and waste
dockets that are within this ratio. The basic design policies, as
discussed and agreed upon by the RDM\'s and RDS\'s at the November 29,
2000 meeting, will be followed. On projects where a grant is involved,
you will need to take a hard look at the initial rates established on
all new projects to insure that grant funds are not unduly subsidizing
the user rates.

> A comparison should also be made of users rates based on commercial
> financing as part of the Area Office documentation of availability of
> other credit as required by Staff Instruction 1780-6. By insuring that
> the rates are commensurate with true user affordability, we can use
> more loan dollars and thereby improve our loan to grant ratio and
> assist more rural residents.
>
> It will be important to use as much leveraged funds as possible to
> reduce grants. This includes a contribution from the applicant as well
> as funds from other agencies.

B. This will also be true on subsequent loans/grants. Loan funds must be
used to the maximum, which may require an increase in existing rates.
Grant funds will be a last resort for projects which have been bid and
need additional funds. If feasible, a loan should always be the first
priority in this situation. Before grant funds are considered, the bids
should be re-evaluated to see if costs can be reduced within the amount
of funds available.

When requesting National Office Reserve Funds for projects that have
experienced a Cost Overrun (COR), the request must include documentation
to show how the COR meets the requirements of RUS Instruction 1780,
section 1780.17 (f).

> **Adequate revenue bonds should have been voted prior to bidding to
> cover the project including cost overruns, therefore, lack of bonding
> authority should not be a reason to inject additional grant funds**.
> Project feasibility and user affordability will be the primary
> criteria considered in subsequent loans/grants as well as initial
> funding.
>
> C. It is important that each Area Office use their allocation within
> their Area and allow their constituents to take full advantage of our
> programs. Area and Local Office personnel must continue to perform
> outreach activities to encourage new applications and not rely
> strictly on proposals submitted to the Missouri Water and Waste Review
> Committee.
>
> Target dates must be set for the obligation of each docket being
> worked on so that funds are approved in an orderly process throughout
> the year. This should reduce the number of obligations done at the
> last minute before pooling and the rush at the end of the year.
>
> **This will need to be a team effort.** This may be an opportunity to
> obtain additional loan and grant funds for projects in the State.
>
> We expect each Area Office to have on hand and develop, ready for
> approval, as of September 30, 2002, water and waste applications in an
> amount of up to 150% of this year\'s Area Office allocation.

Missouri AN No. 1387(1940-L)

Exhibit B --- Page 4

**IV.** **Funds Retained in the National Office**:

> **A.** [**Enterprise Communities (EZ/EC**).]{.underline} East Prairie
> is currently the only community to qualify for EC funds. \$30,973,837
> in loan and \$25,300,000 in grant funds are earmarked for EZ/EC
> projects and is being held in the National Office reserve until June
> 30, 2002. Projects should be modest in design, size and cost to allow
> for the best utilization of funds and serve the largest possible
> number of needy communities. In Missouri, the Rural Development
> Manager is responsible for reviewing requests on behalf of the State
> Director to determine if the proposed project is specifically
> identified in the EZ/EC Strategic Plan and approved benchmark
> documents. This determination should be documented and submitted with
> the request for set-aside funds. An electronic version of Attachment 2
> should also be submitted when requesting funds. Any EZ/EC funds not
> obligated by June 30, 2002 will revert to the regular program reserve.
>
> **B. [Technical Assistance and Training Grants (TAT) - and - Solid
> Waste Management Grants.]{.underline}** Funds for the Technical
> Assistance and Training (TAT) Grants and the Solid Waste Management
> Grants will be retained and obligated by the National Office.
> \$17,465,000 is available nationally for TAT and \$3,500,000 is
> available for Solid Waste. Applications should have been received in
> the State Office, Area Office or Local Office by December 31, 2001 for
> both of these programs to compete for FY02 funds. If the application
> is received in an Area or a Local Office, they should date stamp the
> receipt date and forward all material to the State Office.
>
> **[C. Other Set-Aside Programs]{.underline}**.

Funds are also set aside for the Colonias (Section 306C Grants for
Arizona, California, New Mexico and Texas); Native Americans (Section
306C Grants for members of Federally Recognized Native American Tribes);
Rural Alaskan Native Villages; and Rural Economic Area partnership
(REAP) Zones.

Missouri does not qualify to benefit from any of these three programs.

**IV.** **[Requesting Funds Retained in the National
Office]{.underline}**

A. Requests for National Office reserve funds can be made, after the
approval docket is ready to be obligated, by completing the electronic
Attachment 2 to RUS Staff Instruction 1780-5 and the Project Selection
Criteria, RUS Bulletin 1780-1. Both are attached to this exhibit. These
documents must be submitted to the State Office with the approval
docket. Include a description of the proposed facility describing how
the project funds will be used. The number of users added or benefited
and any significant or unusual circumstances should also be included.
States can make requests only after their entire allocation has been
used or set aside for specific projects.

Missouri AN No. 1387(1940-L)

Exhibit B --- Page 5

> B. The National Office will normally review requests on hand by the
> middle of each month. If funds are not made available immediately, the
> request will be retained by the National Office for consideration as
> funds become available. The National Office will give priority for use
> of reserve funds to projects in targeted areas, low income, leveraged
> funds and new users. Any changes in the application or the request
> information will need to be conveyed to the National Office, as
> applicable. Priority will be given to projects in the State\'s
> targeted areas, Champion Communities, projects which include
> leveraging and small communities with low per capita income.

**V.** **[Pooling of Funds]{.underline}**

A. The National Office mid-year pooling will occur on April 26, 2002. On
or before that date, the State should obligate at least half of the FY02
allocation. All funds from the first half of the allocation, which have
not been obligated, will be returned to the National Office reserve.

> B. Pooling for the end of the year will be August 2, 2002.
>
> Missouri AN No. 1387(1940-L)
>
> Exhibit B - Page 6

WATER AND WASTE DISPOSAL

AREA OFFICE ALLOCATIONS

FISCAL YEAR 2002

+---------------+------------+-------------+-------------+------------+
| [Area         | [          | [Direct]{   | [Grant]{    | [Gua       |
| ]{.underline} | Formula]{. | .underline} | .underline} | ranteed]{. |
|               | underline} |             |             | underline} |
| [Office       |            | [Loan]{     |             |            |
| ]{.underline} | [Factor]{. | .underline} |             | [Loan]{.   |
|               | underline} |             |             | underline} |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| St. Joseph    | 12.05%     | 2,369,000   | 1,301,000   | 172,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Kirksville    | 14.92%     | 2,934,000   | 1,610,500   | 213,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Clinton       | 16.01%     | 3,148,000   | 1,728,000   | 229,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Farmington    | 8.94%      | 1,758,000   | 965,000     | 128,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Springfield   | 14.55%     | 2,861,000   | 1,570,500   | 208,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Houston       | 19.54%     | 3,842,000   | 2,109,000   | 280,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Dexter        | 13.97%     | 2,747,300   | 1,508,000   | 200,000    |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| [\* S/O       |            | [           | [569,000]{  | [76,000]{. |
| Reserve       |            | 1,034,700]{ | .underline} | underline} |
| ]{.underline} |            | .underline} |             |            |
+---------------+------------+-------------+-------------+------------+
|               |            |             |             |            |
+---------------+------------+-------------+-------------+------------+
| Totals        | 100.00%    | \           | \           | \          |
|               |            | $20,694,000 | $11,361,000 | $1,506,000 |
+---------------+------------+-------------+-------------+------------+

\* State Office Reserve is set aside primarily to be used as a match or

> leverage when requesting additional funds for projects from the
> National Reserve. It is not intended to be used for cost overruns
> after bid opening.

MO AN No. 1387(1940-L)

Exhibit B, Page 7

##  **RUS Bulletin 1780-1**

## **WATER & WASTE**

## **PROJECT SELECTION CRITERIA**

Name of
Applicant\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**PRIORITIES POINTS**

Population priorities:

1.  Project primarily serves a rural area

equal to or less than 1,000 population. 25

2\. Project primarily serves a rural area

between 1,001 and 2,500 population. 15

3\. Project primarily serves a rural area

between 2,501 and 5,500 population. 5

B. Health priorities

1\. Project alleviates emergency situation,

corrects unanticipated diminution or

deterioration of a water supply or

to meet Safe Drinking Water Act requirements

which pertain to a water system. 25

2\. Project to correct inadequacies of a wastewater

disposal system or to meet health or sanitary

standards which pertain to a wastewater disposal

system. 25

3\. Projects which are required to meet administrative

orders issued to correct local, State or Federal

violations pertaining to solid waste. 15

C. Median household income (MHI) priorities.

1\. MHI less than the poverty line if the

poverty line is less than 80% of state

nonmetropolitian household income (SNMHI). 30

2\. Less than 80% of the SNMHI. 20

3\. Equal to or more than the poverty line and

between 80% & 100% inclusive, of the SNMHI. 15

Missouri AN No. 1387(1940-L)

Exhibit B - Page 8

D. Other priorities:

1\. Project to merge ownership, management, and

operations of smaller systems for more

efficient management and economic service. 15

2\. Project to enlarge, extend, or otherwise

modify existing facilities to serve additional

rural residents. 10

3\. Applicant is a public body or Indian tribe. 5

4\. Amount of other funds committed to project is:

a\. 50% or more 15

b\. 20-49% 10

c\. 5-19% 5

5\. Project will serve an Agency identified target

area. 10

6\. Project will primarily recycle solid waste

products thereby limiting the need for solid

waste disposal. 5

7\. The proposed project will serve an area that

has an unreliable quality or supply of

drinking water. 10

E. State Program Director\'s discretionary points.

Up to 15 Points may be awarded to projects to

improve compatibility/coordination between RUS's

and other agencies\' selection systems

and to assist those projects that are most cost

effective and that provides for effective RUS fund

utilization. \_\_\_\_\_\_\_

F. Total Points. \_\_\_\_\_\_\_

G. Administrator\'s discretionary points. \_\_\_\_\_\_\_

State Program Directors should recommend and

provide written justification for assignment of

Administrator\'s point under this paragraph.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_

STATE PROGRAM DIRECTOR Date

+-----------------------------------+-----------------------------------+
| REQUEST FOR FUNDS -- FY 2002      | **Missouri AN No. 1387(1940-L)**  |
|                                   |                                   |
|                                   | **Exhibit B Page 9**              |
|                                   |                                   |
|                                   | **RUS Staff Instruction 1780-5**  |
|                                   |                                   |
|                                   | **Attachment 2**                  |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+

  ---------- ------------------------------------------------------------
  TO:        Assistant Administrator -- Water & Environmental Programs,
             Rural Utilities Service

             Washington, DC

             ATTN: Water Programs Division
  ---------- ------------------------------------------------------------

  ---------- ------------------- --- ---------------- ----------------------------
  SUBJECT:   Request For WW          \_\_\_ Reserve   \_\_\_ Colonias Funds
             Funds:                  Funds            

             (Check Applicable       \_\_\_ EZ/EC     \_\_\_ Other
             Item)                   REAP Funds       \_\_\_\_\_\_\_\_\_\_\_\_\_
  ---------- ------------------- --- ---------------- ----------------------------

STATE: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

APPLICANT:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

PROJECT: \_\_\_ Water \_\_\_ Sewer \_\_\_ Solid Waste \_\_\_ Storm
Drainage

  ------------------------------- ----------------------------------------------
  A. Amount of funds requested:   \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
  LOAN: \$                        

  GRANT: \$                       \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
  ------------------------------- ----------------------------------------------

  -------------------- ------------------------------------------------------
  B. \_\_\_\_\_\_ (Yes Are funds requested for an approved project that has
  or No)               encountered cost overruns due to high bids or
                       unexpected construction problems that cannot be
                       reduced by negotiation, redesign, or other means?

                       

  C. \_\_\_\_\_\_\_    Priority of this project in relation to all others
                       your State now has pending in the National Office.
                       (Attach revised listing if necessary.)

                       

  D. \_\_\_\_\_\_ (Yes Is project ready for obligation? If "No", give
  or No)               estimated date project will be ready.
                       \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

                       

  E. \_\_\_\_\_\_ (Yes Pursuant to 7 CFR 1794, has the appropriate level of
  or No)               environmental review been completed for the project,
                       including all public notices? If "No", when will it be
                       completed? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
  -------------------- ------------------------------------------------------

F. List all sources and amounts of funds (including your allocated
funds) committed for this project:

  ----------------------------- ---------------------- ----------------------------
  [Source]{.underline}          [Amount]{.underline}   [Type (loan, grant,
                                                       contribution)]{.underline}

                                                       
  ----------------------------- ---------------------- ----------------------------

  ------------------------ ----------------------------------------------------
  G. \_\_\_\_ (Yes or No)  Have all of the State\'s allocations been obligated?
                           If "No", attach specific explanation of planned use,
                           including list of projects and expected obligation
                           dates.

                           

  H.                       Indicate if project is in special effort area -
  \_\_\_\_\_\_\_\_\_\_\_   Target Area, Champion Community, other.

                           
  ------------------------ ----------------------------------------------------

I. Service area information: MHI \_\_\_\_\_\_\_\_\_\_ Total EDU's
\_\_\_\_\_\_\_\_\_\_

> [Total Users]{.underline} - Residential \_\_\_\_\_\_\_ Other
> \_\_\_\_\_\_\_
>
> [New Users]{.underline} - Residential \_\_\_\_\_\_\_ Other
> \_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

State Director Date

Submit this sheet to the State Office with Project Selection Criteria
\-- see RUS Bulletin 1780-1. **PLEASE ATTACH A BRIEF DESCRIPTION OF THE
PROJECT BEING FUNDED**

**AND FOR COST OVERRUNS PLEASE PROVIDE INFORMATION TO EXPLAIN WHY IT IS
A COST OVERRUN.**

Missouri AN No. 1387(1940-L)

Exhibit C

COMMUNITY FACILITIES

**[General:]{.underline}** The Appropriations Act for FY 2002 included
all Community Facility (CF) funds in the Rural Community Advancement
Program (RCAP). RCAP provides for transfers in budget authority between
some of the CF programs.

**[Allocations:]{.underline}** Community Facility funds received for
Missouri include: \$5,855,000 direct loan; \$3,819,000 guaranteed and
\$207,000 grant. In Missouri, all Community Facility Guaranteed and
Direct Loan funds are being allocated to Area Offices as shown on page 3
of this exhibit.

**[CF Grant]{.underline}**: All of the CF grant funds will also be
allocated to Area Offices. The maximum amount of a grant from the State
allocation is \$103,500 (1/2 of State allocation). Funds from the
National Office reserve can be requested only twice during the fiscal
year. The requests must be in the National Office by May 10, 2002 and
August 23, 2002 to be considered. The maximum request to the National
Office Reserve is \$100,000 except for grants serving EC's.

For each grant application approved, the Area Office must document that
the minimum grant amount needed to achieve financial feasibility for the
project has been determined. A copy of this analysis must be kept in the
project file.

**[RCDI]{.underline}**: Congress appropriated \$6,000,000 for the Rural
Community Development Initiative (RCDI) to be used to develop the
capacity and ability of private, nonprofit, community-based housing and
community development organizations and low-income rural communities, to
undertake projects to improve housing, community facilities, and
community and economic development projects in rural areas. A NOFA on
implementing this program will be forthcoming.

**[EZ/EC]{.underline}**: The Appropriations Act provided an earmark of
\$3,001,841 for loan and \$1,000,000 for grant funds for EZ/EC
communities. Guaranteed loan funds will also be available. To request
EZ/EC funds, Guide 26 of RD Instruction 1942-A or RD Form Letter
3570-B-1, as appropriate, should be submitted to the State Office at any
time. Requests for EZ/EC funds must be received in the National Office
by April 19, 2002. Projects using EZ/EC funds must be obligated by June
30, 2002.

**[Special Initiatives]{.underline}**: Congress has appropriated funding
for several special initiatives, including funds for improvements to
tribal colleges. Funding may also become available for grants for
facilities in communities with extreme unemployment and severe economic
depression. Guidance on the implementation of these initiatives will be
provided as it becomes available.

**[Conversion of Funds]{.underline}**: State Directors will have the
flexibility to transfer up to 25 percent of their initial allocations
from the direct loan to the grant allocation. Each State is limited to
no more than two transfers during the year. States should access the
National Office reserve to meet their needs before transferring funds
between programs.

Missouri AN No. 1387(1940-L)

Exhibit C -- Page 2

The transfer of funds between programs should be consistent with sound
judgment and the State's strategic plan. Factors to consider include the
demand for funds in the program [from]{.underline}

which the funds would be transferred; insufficient funds in the program
[to]{.underline} which the funds would be transferred; and insufficient
funds in the National Office reserve. The population and per capita
income of the community that would benefit from the project should be
equal to or less than that of a community that would benefit from the
program where the funds are transferred from, based on the State's
applications on hand.

For FY 2002, the guaranteed loan program has a negative subsidy rate.
Therefore, it will not be possible to transfer budget authority from the
guaranteed loan program to the direct loan or grant program. Due to the
demand for CF grant funds, transfers of budget authority can be made
into, but not out of that program.

The subsidy factor for Direct Community Facility loans is .0543. The
following example shows the impact of the maximum amount that can be
transferred:

Maximum transfer of Direct CF to CF Grant:

\$5,855,000 - Initial Direct Allocation

\$1,463,750 - 25% of Initial Allocation

\$1,463,750 times .0543= \$79,480

\$ 79,481 Grant Increase

**[National Office Reserve:]{.underline}** Except for special set-aside
funds, National Office reserve funds may be requested after the State's
allocation has been allocated or obligated for particular projects.
Reserve funds can be requested by submitting Guide 26 to RD Instruction
1942-A (direct loan ), Exhibit C of RD Instruction 3575-A (guaranteed
loan), or RD Form Letter 3570-B-1 (grant), as appropriate, to the State
Director once the approval docket has been completed and the project is
ready to obligate.

**[Pooling:]{.underline}** At least one half of all unobligated
[Community Facility Grant]{.underline} funds will be pooled on April 5,
2002, or as needed, from the Area Offices. The final pooling date for
Area Offices will be July 26, 2002. The National Office mid-year pooling
date is April 19, 2002 and the year-end pooling will be August 9, 2002.

At least one-half of al unobligated [Community Facility direct and
guaranteed]{.underline} funds may be pooled from the Area Offices on
April 5, 2002 if needed to meet the needs of other Area Offices.
National Office mid-year pooling of Direct Loans and Guaranteed Loans is
scheduled for April 19, 2002. The State Office year-end pooling will be
July 26, 2002. The National Office Year-end pooling is scheduled for
August 9, 2002.

Missouri AN No 1387(1940-L)

Exhibit C- Page 3

COMMUNITY FACILITIES

AREA OFFICE ALLOCATIONS

FISCAL YEAR 2002

+-----------------+-----------------+-----------------+-----------------+
| [Ar             | [Guarante       | [Dire           | [Gra            |
| ea]{.underline} | ed]{.underline} | ct]{.underline} | nt]{.underline} |
|                 |                 |                 |                 |
| [Offi           | [Lo             | [Lo             |                 |
| ce]{.underline} | an]{.underline} | an]{.underline} |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| St. Joseph      | \$ 545,500      | \$836,400       | \$ 29,500       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Kirksville      | \$ 545,500      | \$836,400       | \$ 29,500       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Clinton         | \$ 545,500      | \$836,400       | \$ 29,500       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Farmington      | \$ 545,500      | \$836,400       | \$ 29,500       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Springfield     | \$ 545,500      | \$836,400       | \$ 29,500       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Houston         | \$ 546,000      | \$836,400       | \$ 30,000       |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Dexter          | [\$             | \$[836,4        | \$              |
|                 | 545,5           | 00]{.underline} | [29,5           |
|                 | 00]{.underline} |                 | 00]{.underline} |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Totals          | \$3,819,000     | \$5,855,000     | \$207,000       |
+-----------------+-----------------+-----------------+-----------------+

Missouri AN No. 1387(1940-L)

Exhibit D

SUMMARY OF POOLING DATES

AND FUNDING CYCLES

COMMUNITY & BUSINESS PROGRAMS

+--------------+---+--------------+---+-------------+---+-----------+---+-----------+
| [Program]    |   | [Last Day    |   | [National   |   | [National |   | [State    |
| {.underline} |   | Request]     |   | Office]{    |   | O         |   | O         |
|              |   | {.underline} |   | .underline} |   | ffice]{.u |   | ffice]{.u |
|              |   |              |   |             |   | nderline} |   | nderline} |
|              |   | [for Funds   |   | [Funding    |   |           |   |           |
|              |   | will         |   | Cycles]{    |   | [Pooling  |   | [Pooling  |
|              |   | be]          |   | .underline} |   | Dates]{.u |   | Dates]{.u |
|              |   | {.underline} |   |             |   | nderline} |   | nderline} |
|              |   |              |   |             |   |           |   |           |
|              |   | [Received in |   |             |   |           |   |           |
|              |   | N/O]         |   |             |   |           |   |           |
|              |   | {.underline} |   |             |   |           |   |           |
+--------------+---+--------------+---+-------------+---+-----------+---+-----------+
|              |   |              |   |             |   |           |   |           |
+--------------+---+--------------+---+-------------+---+-----------+---+-----------+
| #### B&I Gua |   | 3rd Tuesday  |   | 1st         |   | June 30,  |   | N/A       |
| ranteed Loan |   | of Month     |   | /Tuesday of |   | 2002      |   |           |
|              |   |              |   | Month       |   |           |   | N/A       |
| EZ/EC Set    |   | 1^st^        |   |             |   | June 30,  |   |           |
| Aside        |   | Come/1^st^   |   | Anytime     |   | 2002      |   |           |
|              |   | Served       |   |             |   |           |   |           |
| Fed Home     |   |              |   | Anytime     |   | August    |   |           |
| Loan Bk      |   | 1^st^        |   |             |   | 30, 2002  |   |           |
|              |   | Come/1^st^   |   |             |   |           |   |           |
|              |   | Served       |   |             |   |           |   |           |
+--------------+---+--------------+---+-------------+---+-----------+---+-----------+
| ###          | F |              |   |             | J |           | # |           |
| # RBEG Grant | e |              |   |             | u |           | # |           |
|              | b |              |   |             | n |           | # |           |
| EZ/EC Set    | r |              |   |             | e |           | # |           |
| Aside        | u |              |   |             | 3 |           | # |           |
|              | a |              |   |             | 0 |           |   |           |
| Mississippi  | r |              |   |             | , |           | M |           |
| Delta        | y |              |   |             | 2 |           | a |           |
|              | 1 |              |   |             | 0 |           | r |           |
| TV Demo      | 5 |              |   |             | 0 |           | c |           |
|              | , |              |   |             | 2 |           | h |           |
| ####         | 2 |              |   |             |   |           |   |           |
|  RBOG Grant  | 0 |              |   |             | J |           | 3 |           |
|              | 0 |              |   |             | u |           | , |           |
| EZ/EC Set    | 2 |              |   |             | n |           |   |           |
| Aside        |   |              |   |             | e |           | 2 |           |
|              | J |              |   |             | 3 |           | 0 |           |
| Mississippi  | u |              |   |             | 0 |           | 0 |           |
| Delta        | n |              |   |             | , |           | 0 |           |
|              | e |              |   |             | 2 |           |   |           |
|              | 2 |              |   |             | 0 |           | N |           |
|              | 8 |              |   |             | 0 |           | / |           |
|              | , |              |   |             | 2 |           | A |           |
|              | 2 |              |   |             |   |           |   |           |
|              | 0 |              |   |             | U |           | N |           |
|              | 0 |              |   |             | n |           | / |           |
|              | 2 |              |   |             | o |           | A |           |
|              |   |              |   |             | b |           |   |           |
|              | F |              |   |             | l |           | N |           |
|              | e |              |   |             | i |           | / |           |
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|              | r |              |   |             | a |           |   |           |
|              | u |              |   |             | t |           | N |           |
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|              | 0 |              |   |             |   |           |   |           |
|              | 2 |              |   |             |   |           |   |           |
|              |   |              |   |             |   |           |   |           |
|              | A |              |   |             |   |           |   |           |
|              | u |              |   |             |   |           |   |           |
|              | g |              |   |             |   |           |   |           |
|              | u |              |   |             |   |           |   |           |
|              | s |              |   |             |   |           |   |           |
|              | t |              |   |             |   |           |   |           |
|              | 3 |              |   |             |   |           |   |           |
|              | 0 |              |   |             |   |           |   |           |
|              | , |              |   |             |   |           |   |           |
|              | 2 |              |   |             |   |           |   |           |
|              | 0 |              |   |             |   |           |   |           |
|              | 0 |              |   |             |   |           |   |           |
|              | 2 |              |   |             |   |           |   |           |
+--------------+---+--------------+---+-------------+---+-----------+---+-----------+

Missouri AN No. 1387(1940-L)

Exhibit D - Page 2

+--------------+--------------+--------------+-----------+-----------+
| [Program]    | [Last Day    | [National    | [National | [State    |
| {.underline} | Request]     | Office]      | O         | O         |
|              | {.underline} | {.underline} | ffice]{.u | ffice]{.u |
|              |              |              | nderline} | nderline} |
|              | [for Funds   | [Funding     |           |           |
|              | will be      | Cycles]      | [Pooling  | [Pooling  |
|              | Received in  | {.underline} | Dates]{.u | Dates]{.u |
|              | N/O]         |              | nderline} | nderline} |
|              | {.underline} |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| **           | October 31,  | 1st Quarter  | June 30,  | In S/O    |
| Intermediary | 2001         |              | 2002      | by:       |
| Relending**  |              | 2nd Quarter  |           |           |
|              | January 31,  |              |           | 9/23 --   |
| **Program**  | 2002         | 3rd Quarter  |           | 12/31 --  |
|              |              |              |           |           |
| EZ/EC Set    | April 30,    | 4th Quarter  |           | 3/29 --   |
| Aside        | 2002         |              |           | 6/28 --   |
|              |              | 1^st^        |           | 9/30      |
| Mississippi  | July 31,     | Quarter 2003 |           |           |
| Delta        | 2002         |              |           | Un        |
|              |              | N/A          |           | obligated |
|              | October 31,  |              |           | funds     |
|              | 2002         |              |           |           |
|              |              |              |           | can carry |
|              | February 15, |              |           | over for  |
|              | 2002         |              |           |           |
|              |              |              |           | use in FY |
|              | May 15, 2002 |              |           | 2003      |
|              |              |              |           |           |
|              | February 15, |              |           |           |
|              | 2002         |              |           |           |
|              |              |              |           |           |
|              | May 15, 2002 |              |           |           |
|              |              |              |           |           |
|              | August 30,   |              |           |           |
|              | 2002         |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
|              |              |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
|              |              |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| **Rural      | September    | 1st Quarter  |           |           |
| Economic     | 28, 2001     |              |           |           |
| Dev**        |              | 2nd Quarter  |           |           |
|              | December 31, |              |           |           |
| **Loan       | 2001         | 3rd Quarter  |           |           |
| Program**    |              |              |           |           |
|              | March 29,    | 4th Quarter  |           |           |
| **and**      | 2002         |              |           |           |
|              |              | 1^st^        |           |           |
| **Grant      | June 28,     | Quarter 2003 |           |           |
| Program**    | 2002         |              |           |           |
|              |              |              |           |           |
|              | September    |              |           |           |
|              | 30, 2002     |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| **Water &    |              |              |           | NOTE: If  |
| Waste        |              |              |           | n         |
| Disposal     |              |              |           | ecessary, |
| Programs**   |              |              |           | loan &    |
|              |              |              |           | grant     |
|              |              |              |           | funds may |
|              |              |              |           | be pooled |
|              |              |              |           | after the |
|              |              |              |           | NO        |
|              |              |              |           | mid-year  |
|              |              |              |           | pooling   |
+--------------+--------------+--------------+-----------+-----------+
| Water &      |              |              | April 26, | ##        |
| Waste        |              |              | 2002      |           |
|              |              |              |           |           |
| Direct Loans |              |              | August 2, |           |
|              |              |              | 2002      |           |
| EZ/EC        |              |              |           |           |
| Earmark      |              |              | June 30,  |           |
|              |              |              | 2002      |           |
+--------------+--------------+--------------+-----------+-----------+
|              |              |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| Water &      |              |              | April 26, |           |
| Waste        |              |              | 2002      |           |
|              |              |              |           |           |
| Grants       |              |              | August 2, |           |
|              |              |              | 2002      |           |
| EZ/EC        |              |              |           |           |
| Earmark      |              |              | June 30,  |           |
|              |              |              | 2002      |           |
+--------------+--------------+--------------+-----------+-----------+
|              |              |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| Water &      |              |              | April 26, |           |
| Waste        |              |              | 2002      |           |
|              |              |              |           |           |
| Guaranteed   |              |              | August 2, |           |
| Loans        |              |              | 2002      |           |
+--------------+--------------+--------------+-----------+-----------+

> Missouri AN No. 1387(1940-L)

Exhibit D - Page 3

+--------------+--------------+--------------+-----------+-----------+
| [Program]    | [Last Day    | [National    | [National | [State    |
| {.underline} | Request]     | Office]      | O         | O         |
|              | {.underline} | {.underline} | ffice]{.u | ffice]{.u |
|              |              |              | nderline} | nderline} |
|              | [for Funds   | [Funding     |           |           |
|              | will         | Cycles]      | [Pooling  | [Pooling  |
|              | be]          | {.underline} | Dates]{.u | Dates]{.u |
|              | {.underline} |              | nderline} | nderline} |
|              |              |              |           |           |
|              | [Received in |              |           |           |
|              | N/O]         |              |           |           |
|              | {.underline} |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| **Community  | April 19,    |              | April 19, | April 5,  |
| Facility**   | 2002         |              | 2002      | 2002      |
|              |              |              |           |           |
| **Programs   |              |              | August 9, | July 26,  |
| (CF)**       |              |              | 2002      | 2002      |
|              |              |              |           |           |
| CF Grant     |              |              | May 10,   | April 5,  |
|              |              |              | 2002      | 2002      |
| CF Grant --  |              |              |           |           |
| National     |              |              | August    | July 26,  |
|              |              |              | 23, 2002  | 2002      |
| Office       |              |              |           |           |
| Reserves     |              |              | April 19, | April 5,  |
|              |              |              | 2002      | 2002      |
| CF Direct    |              |              |           |           |
| Loan         |              |              | August 9, | July 26,  |
|              |              |              | 2002      | 2002      |
| CF           |              |              |           |           |
| Guaranteed   |              |              | April 19, |           |
| Loans        |              |              | 2002      |           |
|              |              |              |           |           |
| All EZ/EC    |              |              | August 9, |           |
| Reserves     |              |              | 2002      |           |
|              |              |              |           |           |
| for CF Grant |              |              | June 30,  |           |
| & CF         |              |              | 2002      |           |
|              |              |              |           |           |
| Direct Loans |              |              |           |           |
+--------------+--------------+--------------+-----------+-----------+
| **Technical  | \#           |              |           |           |
| Assistance** |              |              |           |           |
|              | \#           |              |           |           |
| **& Training |              |              |           |           |
| Grants**     | @@           |              |           |           |
|              |              |              |           |           |
| **Solid      |              |              |           |           |
| Waste**      |              |              |           |           |
|              |              |              |           |           |
| **Management |              |              |           |           |
| Grants**     |              |              |           |           |
|              |              |              |           |           |
| **Distance   |              |              |           |           |
| Learning**   |              |              |           |           |
|              |              |              |           |           |
| **and        |              |              |           |           |
| Te           |              |              |           |           |
| lemedicine** |              |              |           |           |
|              |              |              |           |           |
| **Lo         |              |              |           |           |
| ans/Grants** |              |              |           |           |
+--------------+--------------+--------------+-----------+-----------+

\# Preapplications for these programs due in the State Office by
December 31, 2001 for consideration of FY 2002 grant funds as outlined
in RUS Instruction 1775.

@@ Invitations for Preapplications have been published in the Federal
Register.

Missouri AN No. 1387(1940-L)

#######  Exhibit E

**DOCUMENTS TO BE SUBMITTED TO STATE OFFICE**

**BY TIME OF RDM LOAN/GRANT APPROVAL**

**[Business & Industry - RDM approval authority
\$3,000,000]{.underline}**

\- Form 4279-2, Certificate of Non-Relocation\*

\- Enter Appropriate Information in RCFTS/RDAPTS (include jobs data)

\- Form 4279-1, Application/Project Summary Parts A, B, C (copy)

\- Form 1940-3, Request for Obligation (3 signed and dated + 2
copies)-Guaranteed

\- Form 4279-3, Proposed Conditional Commitment with
attachments-Guaranteed

\- Form 1940-1, Request for Obligation (2 signed and dated + 2
copies)-Direct

(Signed by applicant and RDM)

\- LAPAS Information E-Mailed to C&BP Section

\- Copy of Priority Scoring Sheet

\*Submit only if form needs to be submitted to the National Office for

clearance. If so, submit as early as possible - do not wait until the

complete docket is submitted. (4279.161 (a)(2))

*Note*: Environmental Assessment is prepared and signed by preparer and
is sent to State Office

only in cases where the RDM can not sign

**DOCUMENTS TO BE SUBMITTED TO STATE OFFICE [AFTER]{.underline}**

**ACCEPTANCE OF THE CONDITIONAL COMMITMENT**

**B&I DIRECT AND GUARANTEED LOANS**

The following items must be submitted to the State Office within 20 days
after acceptance of the Conditional Commitment by the lender and the
borrower:

-   A copy of Form 4279-3, Conditional Commitment, with attachments, as
    accepted by the

    lender and the borrower.

-   A copy of the lender's credit analysis, financial statement
    spreadsheets (historical and

    projected and pro-forma balance sheet at the time LNG is issued),
    and the summary

    page of appraisals and the appraiser qualifications data.

    \- A copy of the proposed Loan Agreement between the lender and the
    borrower

-   When debt refinancing or restructuring is involved, a copy of the
    justification for

    refinancing.

-   [If]{.underline} the Loan Note Guarantee has been issued, enclose a
    copy of the Lender Certification

> required in Section 4279.181 of RD Instruction 4279-B.

\- [If]{.underline} the Loan Note Guarantee has not been issued, provide
a proposed date for issuance

of the LNG.

## Refer to RDS-12 Training Material dated November 12, 2001

(Revised 2/02)

Missouri AN No. 1387(1940-L)

Exhibit E - Page 2

**[Rural Business Enterprise Grants -- 1942-G -- RDM approval
authority]{.underline}**

\- Preliminary Engineering Report \*\*

\- Evidence of Organization for OGC review\*\* (if necessary)

\- Enter Appropriate Information in RCFTS/RDAPTS

\- Form 1942-43, Project Summary (original)

\- Form 442-7, Operating Budget (original)

\- Letter of Conditions

\- Form 1942-14, Fund Analysis

\- Form 1940-1, Request for Obligation (2 signed and dated + 2 copies)

\- Project Selection Criteria (RD Instruction 1942-G Attachment 1) \*

\- Project Information/Funding Request (Exhibit A on Page 13 of this
AN)\*

\- LAPAS Information E-Mailed to C&BP Section

\- Scope of Work if Grant is for Technical Assistance

\* If funds are to be requested from the National Office

\*\* Submit as soon as available

Note: Environmental Assessment will be prepared and signed by the
preparer and

> is sent to the State Office only in cases where the RDM can not
> approve the grant

**[Water & Waste Disposal - RDM approval authority - \$1,000,000 loan
and grant]{.underline}**

\- Preliminary Engineering Report/Facility Plan\*\*

\- Area Office written analysis and initial feasibility\*\*

\- Water/Sewer Contracts for Purchase, Sales, Treatment, etc. \*\*

(new contracts or ones with major revisions)

\- Enter appropriate information in RCFTS and CPAP

\- Area Office final feasibility work papers (copy)

\- Form 442-7, Operating Budget (original)

\- Form 1942-51, Grant Determination \# (original)

\- Form 1942-45, Project Summary \# (original)

\- Form 1942-14, Fund Analysis (3 copies)\
- Letter of Conditions

\- Form 1940-1, Request for Obligation (2 signed and dated + 2 copies)

\- LAPAS Information E-Mailed to C&BP Section

\*\* Submit as early as possible - do no wait for complete application

\# Signed by RDM (in place of Director) if the RDM is the approval

official. RDS then signs as District Director, if applicable on form

Note: Environmental Assessment is sent to the SEC in the State Office
when

signature of the SEC is needed.

Missouri AN No. 1387(1940-L)

Exhibit E -- Page 3

**[Community Facilities - 1942-C - RDM approval authority
\$1,000,000]{.underline}**

\- Evidence of Organization for OGC review (submit as soon as received)
if applicable

\- Any Leases, Contracts, Parity Agreements or Title Opinions

\- Enter Appropriate Information in RCFTS/RDAPTS

\- Form 1942-43, Project Summary\* and Form 1942-52, Budget\*
(Originals)

\- Letter of Conditions\*

\- Form 1940-1, Request for Obligation (Direct) (2 signed + 2 copies)

\- Form 1942-14, Fund Analysis (Direct)

\- Form 1940-3, Request for Obligation (Guaranteed) (3 signed + 2
copies)

\- Form 449-14, Conditional Commitment, with attachments (Guaranteed)

\- LAPAS Information E-Mailed to C&BP Section

\* For distribution only - no state office review will be done.

Note: Environmental Assessment is sent to the State Office

only in cases where the RDM can not sign.

**[Community Facilities - 1942-A, 1980-I, 3570-B - RDM approval
authority \$1,000,000]{.underline}**

\- Preliminary Architectural/Engineering Report \*\*

\- Evidence of Organization for OGC review if applicable\*\*

\- Leases, Contracts, Parity Agreements or Title Opinions

\- Enter Appropriate Information in RCFTS/RDAPTS

\- Form 1942-43, Project Summary (original)

\- Form 442-7, Operating Budget (original)

\- Feasibility Study (health-care only)

\- Letter of Conditions

\- Form 1942-14, Fund Analysis

\- Form 1940-1, Request for Obligation (Direct)(2 signed + 2 copies)

\- Form 1940-3, Request for Obligation (Guaranteed)(3 signed + 2 copies)

\- Form 3570-1, Project Selection Priorities (Grant)

\- Form 3570-2, Worksheet for Computing Maximum Grant Assistance (Grant)

\- LAPAS Information E-Mailed to C&BP Section

\*\* Submit as soon as available

Note: Environmental Assessment will be sent to the State Office

only in cases where the RDM can not sign

Missouri AN No. 1387(1940-L)

Exhibit F

C&BP TARGETED COUNTIES

**[Persistent Poverty Counties (26)]{.underline}**

  ----------------- ----------------- ----------------- -----------------
  Butler            Knox              Pemiscot          Sullivan

  Carter            McDonald          Reynolds          Texas

  Dent              Madison           Ripley            Washington

  Douglas           Mississippi       St. Clair         Wayne

  Dunklin           New Madrid        Scotland          Worth

  Hickory           Oregon            Shannon           Wright

  Howell            Ozark                               
  ----------------- ----------------- ----------------- -----------------

## **[EZ/EC/Champion Community Counties]{.underline}**

  ----------------- ----------------- ----------------- -----------------
  Adair             Dent              Mississippi       Pulaski

  Bates             Dunklin           New Mardid        Ripley

  Benton            Henry             Pemiscot          Scott

  Butler            Hickory                             
  ----------------- ----------------- ----------------- -----------------

## **[High Unemployment Counties]{.underline}**

+-----------------+-----------------+-----------------+-----------------+
| Bates           | Dent            | Miller          | St. Clair       |
+-----------------+-----------------+-----------------+-----------------+
| # Benton        | Douglas         | Mississippi     | St. Francois    |
+-----------------+-----------------+-----------------+-----------------+
| # Bollinger     | Dunklin         | Morgan          | Scott           |
+-----------------+-----------------+-----------------+-----------------+
| # Buchanan      | Henry           | New Madrid      | Shannon         |
+-----------------+-----------------+-----------------+-----------------+
| # Butler        | Hickory         | Oregon          | Stoddard        |
+-----------------+-----------------+-----------------+-----------------+
| # Camden        | Howell          | Ozark           | Stone           |
+-----------------+-----------------+-----------------+-----------------+
| # Carter        | Iron            | Pemiscot        | Taney           |
+-----------------+-----------------+-----------------+-----------------+
| # Chariton      | Laclede         | Pike            | ### Texas       |
+-----------------+-----------------+-----------------+-----------------+
| # Clark         | Lawrence        | Pulaski         | Washington      |
+-----------------+-----------------+-----------------+-----------------+
| # Crawford      | Linn            | Randolph        | Wayne           |
+-----------------+-----------------+-----------------+-----------------+
| # Dallas        | Macon           | Reynolds        | Wright          |
+-----------------+-----------------+-----------------+-----------------+
| # Daviess       | Madison         | Ripley          |                 |
+-----------------+-----------------+-----------------+-----------------+

## **[RCAP Community Counties]{.underline}**

  ----------------- ---------------------- ------------------- -----------------
  Sullivan-Milan    Johnson-Knob Noster    McDonald-Noel       Miller-Iberia

  Monroe-Monroe     Reynolds-Centerville   Washington-Potosi   
  City                                                         
  ----------------- ---------------------- ------------------- -----------------