# Programs for Rural Businesses and Rural Cooperatives

USDA Rural Development's Rural Business-Cooperative Service delivers a
variety of assistance to rural businesses and communities. All of them
work in financial partnership with local economic organizations \--
banks and lenders, economic development groups, local revolving loan
funds, universities, cities, counties, tribes, and utility cooperatives.

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<td><p><strong>ELIGIBLE</strong></p>
<p><strong>APPLICANTS</strong></p>
<p><strong>Who can apply</strong></p></td>
<td><p><strong>USDA</strong></p>
<p><strong>Program</strong></p></td>
<td><h2 id="section"></h2>
<h2 id="purpose">Purpose</h2>
<p><strong>Program goal</strong></p></td>
<td><p>Program Type</p>
<p><strong>How it works</strong></p></td>
<td><p><strong>Eligible</strong></p>
<p><strong>Areas</strong></p>
<p><strong>Rural population</strong></p></td>
<td><p>Authorized Purposes</p>
<p><strong>Use of funds</strong></p></td>
<td><strong>Typical FUNDING</strong></td>
<td><p>Rates and Terms</p>
<p><strong>Rates can change</strong></p></td>
<td><p><strong>Keys</strong></p>
<p><strong>to</strong></p>
<p><strong>Success</strong></p></td>
<td><p><strong>When</strong></p>
<p><strong>to</strong></p>
<p><strong>Apply</strong></p></td>
<td><p><strong>Who</strong></p>
<p><strong>to</strong></p>
<h2 id="contact">Contact</h2></td>
</tr>
<tr class="even">
<td><strong>Banks and other rural business lenders</strong></td>
<td><strong>B &amp; I Guarantee</strong> Business and Industry
Guaranteed Loan</td>
<td>Creates incentive for business lending that saves and creates jobs
(typically for larger businesses)</td>
<td>USDA guarantees business loans made by banks</td>
<td>All rural areas other than cities of more than 50,000 population and
their adjacent urbanized areas</td>
<td>The loans guaranteed can be used for real estate, equipment, working
capital, and refinancing -- for nonfarm businesses</td>
<td>$1 million - $10 million</td>
<td>Negotiated between business and lender -- fixed or variable rates,
typically near Prime (no balloons)</td>
<td>Lender-driven: there must be a bank willing to make the loan --
(USDA only guarantees the loan) -- business must have strong equity and
collateral</td>
<td>Year-round</td>
<td><p>Local banks and business lenders or</p>
<p>USDA State Office (Rural Business Programs)</p></td>
</tr>
<tr class="odd">
<td rowspan="2"><p><strong>Nonprofit economic development groups, tribes
and public bodies</strong></p>
<p><strong>(e.g. cities or counties)</strong></p></td>
<td><strong>IRP</strong> Intermediary Relending Program</td>
<td>Capitalizes locally-run revolving loan programs for small businesses
unable to qualify for bank financing</td>
<td>USDA loans money to a local revolving loan fund for relending to
nonfarm businesses</td>
<td>Unincorporated areas with less than 25,000 population</td>
<td>The loans must be used to set up a loan program to make business
loans for real estate, equipment, working capital, and refinancing --
for nonfarm businesses</td>
<td>Maximum $750,000 loans to re-lenders for business loans up to
$150,000</td>
<td><p>1%, 30 years to relender</p>
<p>for rural business loans</p></td>
<td>Funding is limited, so these loans tend to go only to loan funds
that will serve the neediest areas</td>
<td>Year-round with quarterly competition at national level</td>
<td>USDA State Office (Rural Business Programs)</td>
</tr>
<tr class="even">
<td><p><strong>RBEG</strong></p>
<p>Rural Business Enterprise Grant</p></td>
<td>Supports community economic development programs that will assist
small businesses</td>
<td>USDA makes grants to local economic development programs that
support nonfarm businesses</td>
<td rowspan="3">All rural areas other than cities of more than 50,000
population and their adjacent urbanized areas</td>
<td>The grant can be used to set up a revolving loan fund, provide
technical assistance to businesses, develop infrastructure, provide job
training, or do a feasibility study</td>
<td>$25,000 - $100,000</td>
<td rowspan="4"><p>Grant</p>
<p>Grant</p></td>
<td>Funding is limited, so these grants tend to go only to the neediest
areas -- grant funds cannot be used for regional planning or business
attraction projects</td>
<td>Once a year with annual competition at state level</td>
<td rowspan="2">USDA Local or State Office (Rural Business
Programs)</td>
</tr>
<tr class="odd">
<td><strong>Nonprofit economic development groups, tribes and public
bodies</strong></td>
<td><p><strong>RBOG</strong></p>
<p>Rural Business Opportunity Grant</p></td>
<td>Supports economic development planning in rural areas</td>
<td>USDA makes grants to local economic development programs that
support nonfarm businesses</td>
<td>Grant can be used for development planning, technical assistance and
leadership development</td>
<td><p>$50,000</p>
<p>or less</p></td>
<td rowspan="2">Funding is limited, so these grants tend to go only for
projects helping the neediest areas</td>
<td rowspan="3">Once a year with annual competition at national
level</td>
</tr>
<tr class="even">
<td><strong>Universities and nonprofit economic development
groups</strong></td>
<td><p><strong>RCDG</strong></p>
<p>Rural Cooperative Development Grant</p></td>
<td>Supports centers to assist cooperatives</td>
<td>USDA makes grants to centers for rural cooperative development</td>
<td>Grants are used to operate centers that assist rural
cooperatives</td>
<td>$50,000 - $300,000</td>
<td rowspan="2">USDA State Office (Rural Business Programs)</td>
</tr>
<tr class="odd">
<td><strong>Agricultural producers and cooperatives</strong></td>
<td><p><strong>VADG</strong></p>
<p>Value-Added Ag Product Market Development Grants</p></td>
<td>Help producer-owned business ventures add value to products</td>
<td>USDA makes grants for value added activities such as planning and
working capital</td>
<td>No limitations</td>
<td><p>Value Added:1) change in product physical state 2) enhancing
product value 3) product segregation</p>
<p>4) product produces renewable energy</p></td>
<td><p>Maximum $500,000 --</p>
<p>100% matching funds required</p></td>
<td>Priority given to requests under $500,000, to products producing
energy from biomass and to profitable use of innovative technology</td>
</tr>
<tr class="even">
<td><strong>Electric and telephone cooperatives, USDA
financed</strong></td>
<td colspan="3"><p><strong>RED Loan</strong> - Rural Economic
Development Loan</p>
<p><strong>RED Grant</strong> - Rural Economic Development
Grant</p></td>
<td colspan="7">For information contact USDA Local Office or State
Office (Rural Business Program)</td>
</tr>
</tbody>
</table>

Programs for Rural Utilities

USDA Rural Development's Rural Utilities Service delivers a variety of
assistance to rural utilities. Most involve direct assistance by USDA,
while others work through local partnerships.

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<td><p><strong>Eligible Applicants</strong></p>
<p><strong>Who can apply</strong></p></td>
<td><p><strong>USDA</strong></p>
<h3 id="program">Program</h3></td>
<td><h3 id="section-1"></h3>
<h3 id="purpose-1">Purpose</h3>
<p><strong>Program goal</strong></p></td>
<td><p>Program Type</p>
<p><strong>How it works</strong></p></td>
<td><p>Eligible Areas</p>
<p><strong>Rural population</strong></p></td>
<td><p>Authorized Purposes</p>
<p><strong>Use of funds</strong></p></td>
<td><strong>Typical Funding</strong></td>
<td><p>Rates and Terms</p>
<p><strong>Rates can</strong></p>
<p><strong>change</strong></p></td>
<td><p><strong>Keys</strong></p>
<p><strong>to</strong></p>
<p><strong>Success</strong></p></td>
<td><p><strong>When</strong></p>
<p><strong>to</strong></p>
<p><strong>Apply</strong></p></td>
<td><p><strong>Who</strong></p>
<p><strong>to</strong></p>
<p><strong>Contact</strong></p></td>
</tr>
<tr class="even">
<td rowspan="2"><p><strong>Public bodies, tribes, and nonprofits
(cities, water districts,</strong></p>
<p><strong>mutual water companies)</strong></p></td>
<td><strong>WWD Loan and Grant</strong> Water and Waste Disposal Loan
and Grant</td>
<td>Develops and repairs water, sewer, storm drainage, and solid waste
systems</td>
<td>USDA makes loans (sometimes with grants) for water and waste
disposal facilities</td>
<td>Cities with less than 10,000 population and unincorporated
areas</td>
<td rowspan="3">Eligible projects include water, sewer, solid waste and
storm drainage systems -- both new and repair projects -- for domestic
and industrial users (excludes irrigation)</td>
<td><p>$1 million-</p>
<p>$3 million</p></td>
<td>Loans: 4.5%-5.5% fixed, 40 years also Grants</td>
<td>Loans must be fully secured by revenues or assessments -- grants
focus on neediest applicants for up to 75% of the project cost,
depending on population, income, and health factors</td>
<td rowspan="3"><p>Year-round</p>
<p>Year-round</p></td>
<td rowspan="2"><p>USDA</p>
<p>Local Offices</p></td>
</tr>
<tr class="odd">
<td><strong>Colonias and Native American Grants</strong></td>
<td>Helps especially needy border and Native American communities pay
for all or part of the cost of water and waste disposal facilities</td>
<td>USDA makes grants for water and waste disposal facilities</td>
<td>Designated “Colonias” within 150 miles of US-Mexico Border and
Native American communities</td>
<td>$100,000-$500,000</td>
<td>Grant</td>
<td>Grant amount depends on community population, income, and health and
safety factors</td>
</tr>
<tr class="even">
<td><strong>Banks and other commercial lenders</strong></td>
<td><strong>WWD Guarantee</strong> Water and Waste Disposal Guaranteed
Loan</td>
<td>Creates incentive for commercial lending that finances water, sewer,
storm drainage, and solid waste systems</td>
<td>USDA guarantees loans made by banks</td>
<td rowspan="3">Cities with less than 10,000 population and
unincorporated areas</td>
<td>$500,000 - $5 million</td>
<td>Negotiated between business and lender -- fixed or variable rates
allowed</td>
<td>Lender-driven: there must be a bank willing to make the loan --
(USDA only guarantees loan) -- nonprofits (e.g., mutual water companies)
are targeted</td>
<td><p>Banks and commercial lenders or</p>
<p>USDA State Office (Rural Utilities Programs)</p></td>
</tr>
<tr class="odd">
<td><strong>Public bodies (e.g., counties and joint powers authorities),
tribes, and nonprofits</strong></td>
<td><p><strong>SWMG</strong></p>
<p>Solid Waste Management Grant</p></td>
<td>Supports recycling education and solid waste planning</td>
<td>USDA makes grants to improve solid waste handling</td>
<td>The funds can be used for technical assistance, planning, and
community education projects</td>
<td>$50,000</td>
<td rowspan="2">Grant</td>
<td rowspan="2">Funding is limited, so these grants tend to go only to
the neediest areas</td>
<td rowspan="2">Once a year with annual competition at national
level</td>
<td rowspan="2">USDA State Office (Rural Utilities Programs)</td>
</tr>
<tr class="even">
<td><strong>Nonprofit corporations who will provide such assistance to
rural utilities</strong></td>
<td><strong>TAT</strong> Technical Assistance and Training Grant</td>
<td>Supports entities eligible for WWD loans and grants for operator
training, board training, financial planning, and accessing funding</td>
<td>USDA makes grants to benefit small rural utilities</td>
<td>The funds can be used for technical assistance, planning, and
training</td>
<td><p>$50,000-</p>
<p>$1 million+</p></td>
</tr>
</tbody>
</table>

# Programs for Rural Communities

USDA Rural Development delivers a variety of assistance to rural
communities. Some involve direct assistance by USDA, while others work
through local partnerships.

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<col style="width: 8%" />
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<tbody>
<tr class="odd">
<td><p><strong>Eligible Applicants</strong></p>
<p><strong>Who can apply</strong></p></td>
<td><p><strong>USDA</strong></p>
<h3 id="program-1">Program</h3></td>
<td><h3 id="section-2"></h3>
<h3 id="purpose-2">Purpose</h3>
<p><strong>Program goal</strong></p></td>
<td><p>Program Type</p>
<p><strong>How it works</strong></p></td>
<td><p>Eligible Areas</p>
<p><strong>Rural population</strong></p></td>
<td><p>Authorized Purposes</p>
<p><strong>Use of funds</strong></p></td>
<td><strong>Typical Funding</strong></td>
<td><p>Rates and Terms</p>
<p><strong>Rates can</strong></p>
<p><strong>change</strong></p></td>
<td><p><strong>Keys</strong></p>
<p><strong>to</strong></p>
<p><strong>Success</strong></p></td>
<td><p><strong>When</strong></p>
<p><strong>to</strong></p>
<p><strong>Apply</strong></p></td>
<td><p><strong>Who</strong></p>
<p><strong>to</strong></p>
<p><strong>Contact</strong></p></td>
</tr>
<tr class="even">
<td><strong>Banks and other commercial lenders to make loans to
nonprofits, tribes, and public bodies (e.g., cities or
counties)</strong></td>
<td><strong>CF Guarantee</strong> Community Facilities Guaranteed
Loan</td>
<td>Provide an incentive for commercial lending that will develop
essential community facilities</td>
<td>USDA guarantees loans made by banks</td>
<td rowspan="4"><p>Cities, towns, unincorporated areas with less than
20,000 population</p>
<p>Cities, towns, unincorporated areas with less than 20,000
population</p></td>
<td>The loans guaranteed can be used for real estate and equipment –
types of projects include clinics, hospitals, public buildings, day care
centers, fire stations, fire trucks, and recreational facilities</td>
<td>$100,000 - $6 million</td>
<td>Negotiated between borrower and lender – fixed or variable
rates</td>
<td><p>Lender-driven: there must be a bank willing to make the loan --
(USDA only guarantees the loan)</p>
<p>-- typically, only nonprofit borrowers qualify for CF
guarantees</p></td>
<td rowspan="3"><p>Year-round</p>
<p>Year-round</p></td>
<td><p>Local banks or</p>
<p>USDA State Office (Rural Utilities and Community Facilities
Programs)</p></td>
</tr>
<tr class="odd">
<td rowspan="2"><strong>Nonprofits, tribes, and public bodies (e.g.,
cities or counties)</strong></td>
<td><strong>CF Direct</strong> Community Facilities Direct Loan</td>
<td>Develop essential community facilities</td>
<td>USDA makes <em>loans</em> to develop essential community
facilities</td>
<td rowspan="2">The loans can be used for real estate and equipment –
types of projects include clinics, hospitals, public buildings, day care
centers, and fire stations or fire trucks</td>
<td>$100,000 - $2 million</td>
<td>4.5%-5.5% fixed; 40 years maximum</td>
<td>The loan must be fully secured by a lien on the property financed or
by a pledge of tax revenues</td>
<td rowspan="2"><p>USDA</p>
<p>Local Offices</p></td>
</tr>
<tr class="even">
<td><strong>CF Grant</strong> Community Facilities Grant</td>
<td>Help communities that cannot qualify for a CF loan pay for the cost
of developing essential community facilities</td>
<td>USDA makes <em>grants</em> to develop essential community
<strong>facilities</strong></td>
<td>$15,000-$40,000</td>
<td>Grant</td>
<td>May pay for 15-75% of the project cost depending on the community’s
population and median household income</td>
</tr>
<tr class="odd">
<td><strong>Schools, libraries, nonprofit hospitals, clinics, and
tribes</strong></td>
<td><strong>DL/TM</strong> Distance Learning and Telemedicine Loan and
Grant</td>
<td>Support the development telemedicine and distance learning
systems</td>
<td>USDA makes loans and grants</td>
<td>The funds can be used for initial capital and hardware costs that
will enhance telecommunication capabilities for either public education
or medical purposes</td>
<td>$50,000-$300,000 for grants – no limit for loans</td>
<td><p>Fixed based on Government cost of funds;</p>
<p>10 years <em>and/or</em></p>
<p>Grant</p></td>
<td>15% of grant amount required in non-federal matching funds – grants
are only made available to the neediest applicants</td>
<td>Once a year with annual competition at national level</td>
<td>USDA State Office (Rural Utilities and Community Facilities
Programs)</td>
</tr>
</tbody>
</table>

Programs for Rural Housing -- Single Family Housing

USDA Rural Development's Rural Housing Service delivers a variety of
assistance to support the housing needs of rural people. Most involve
direct assistance by USDA, while others work through local partnerships.

<table>
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<col style="width: 12%" />
<col style="width: 7%" />
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<tbody>
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<td><p>Eligible Applicants</p>
<h5 id="who-can-apply">Who can apply</h5></td>
<td><p><strong>USDA</strong></p>
<h3 id="program-2">Program</h3></td>
<td><h3 id="section-3"></h3>
<h3 id="purpose-3">Purpose</h3>
<h4 id="program-goal">Program goal</h4></td>
<td><p>Program Type</p>
<h4 id="how-it-works">How it works</h4></td>
<td><p>Eligible Areas</p>
<h4 id="rural-population">Rural population</h4></td>
<td><p>Authorized Purposes</p>
<h4 id="use-of-funds">Use of funds </h4></td>
<td><strong>Typical Funding</strong></td>
<td><p>Rates and Terms</p>
<p><strong>Rates can</strong></p>
<p><strong>Change</strong></p></td>
<td><p><strong>Keys</strong></p>
<p><strong>to</strong></p>
<p><strong>Success</strong></p></td>
<td><p><strong>When</strong></p>
<p><strong>to</strong></p>
<p><strong>Apply</strong></p></td>
<td><p><strong>Who</strong></p>
<p><strong>to</strong></p>
<p><strong>Contact</strong></p></td>
</tr>
<tr class="even">
<td><strong>Low and very low income people</strong></td>
<td><strong>SFH 502 Loan</strong> Single Family Housing Direct Loan</td>
<td>Creates option for low income people to buy a modest home</td>
<td>USDA makes loan to home-buyers</td>
<td rowspan="5">Unincorporated areas, cities with less than10,000
population, and some cities with less than 25,000 population</td>
<td rowspan="3"><p>Buy and perform needed repairs on new or existing
homes --</p>
<p>100% financing -- no down payment required</p></td>
<td>$80,000-$120,000; up to 100% of the market value of the home</td>
<td><p>6.75% fixed</p>
<p>(or lower if subsidized);</p>
<p>33-38 years</p></td>
<td><p>Applicants must have good credit and stable income adequate to
repay the loan --</p>
<p>Self-Help program available</p></td>
<td rowspan="5"><p>Year-round</p>
<p>Year-round</p>
<p>Year-round</p></td>
<td><p>USDA</p>
<p>Local Offices</p></td>
</tr>
<tr class="odd">
<td><strong>Low income people</strong></td>
<td><p><strong>SFH 502 Participation</strong></p>
<p>Single Family Housing Participation Loan</p></td>
<td>Enhances ability of mortgage lenders to make loans so low-income
people have option to buy a modest home</td>
<td>USDA participates with a local mortgage lender in financing a
home</td>
<td>$80,000-$130,000; up to 100% of the market value of the home</td>
<td><p>Mortgage lender’s loan is fixed; 30 years; USDA’s is 6.75%
fixed</p>
<p>( or lower if subsidized);</p>
<p>33-38 years</p></td>
<td>Mortgage lender loans 40+% of purchase price; USDA loans the rest –
applicants must have good credit and stable income adequate to repay the
loan</td>
<td>Participating mortgage lender, or USDA Local Office</td>
</tr>
<tr class="even">
<td><strong>Mortgage lenders making loans to low and moderate income
people</strong></td>
<td><strong>SFH Guarantee</strong> Single Family Housing Guaranteed
Loan</td>
<td>Creates incentive for mortgage lender to make home loans to low and
moderate income people</td>
<td>USDA guarantees home loan made by mortgage lenders</td>
<td><p>$250,000;</p>
<p>up to 100% of the market value of the home</p></td>
<td>Mortgage lender’s interest rate is negotiated but is fixed; 30
years; the guarantee fee is 2%</td>
<td>Lender-driven: participant lenders make the loan -- (USDA guarantees
the loan) – applicants need good credit, stable income adequate for loan
repayment</td>
<td>Participating mortgage lender, or USDA State Office (Single Family
Housing Programs)</td>
</tr>
<tr class="odd">
<td><strong>Very low income people</strong></td>
<td><p><strong>SFH 504 Loan</strong></p>
<p>Single Family Housing Loan</p></td>
<td>Modernizes or repairs a modest home</td>
<td>USDA makes loan to home owners</td>
<td rowspan="2">Install or repair water or sewer hook-ups, roofing,
insulation, other improvements or to repair basic defects</td>
<td>$20,000</td>
<td>1%, 20 year</td>
<td>Applicant must have limited resources and be unable to get credit
elsewhere</td>
<td rowspan="2"><p>USDA</p>
<p>Local Offices</p></td>
</tr>
<tr class="even">
<td><strong>Very low income people who are 62 years or
older</strong></td>
<td><p><strong>SFH 504 Grant</strong></p>
<p>Single Family Housing Repair Grant</p></td>
<td>Rehabilitates substandard housing to a safe, decent and sanitary
condition</td>
<td>USDA gives grant to home owners</td>
<td>$7,500</td>
<td>Grant</td>
<td>Applicant must have limited resources -- SFH 504 Grant and Loan may
be combined</td>
</tr>
</tbody>
</table>

Programs for Rural Housing -- Multi Family

USDA Rural Development's Rural Housing Service delivers a variety of
assistance to support the housing needs of rural people. Most involve
direct assistance by USDA, while others work through local partnerships.
Includes Farm Labor and Housing Preservation programs.

<table>
<colgroup>
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 12%" />
<col style="width: 7%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td><p>Eligible Applicants</p>
<h5 id="who-can-apply-1">Who can apply</h5></td>
<td><p><strong>USDA</strong></p>
<h3 id="program-3">Program</h3></td>
<td><h3 id="section-4"></h3>
<h3 id="purpose-4">Purpose</h3>
<h4 id="program-goal-1">Program goal</h4></td>
<td><p>Program Type</p>
<h4 id="how-it-works-1">How it works</h4></td>
<td><p>Eligible Areas</p>
<h4 id="rural-population-1">Rural population</h4></td>
<td><p>Authorized Purposes</p>
<h4 id="use-of-funds-1">Use of funds </h4></td>
<td><strong>Typical Funding</strong></td>
<td><p>Rates and Terms</p>
<p><strong>Rates can</strong></p>
<p><strong>Change</strong></p></td>
<td><p><strong>Keys</strong></p>
<p><strong>to</strong></p>
<p><strong>Success</strong></p></td>
<td><p><strong>When</strong></p>
<p><strong>to</strong></p>
<p><strong>Apply</strong></p></td>
<td><p><strong>Who</strong></p>
<p><strong>to</strong></p>
<p><strong>Contact</strong></p></td>
</tr>
<tr class="even">
<td><strong>Private developers, nonprofits, tribes, public
agencies</strong></td>
<td><p><strong>RRH 515 Loan</strong></p>
<p>Rural Rental Housing Direct Loan</p></td>
<td>Develops and repairs apartments for low income tenants</td>
<td>USDA makes loan for apartments</td>
<td rowspan="2">Unincorporated areas, cities with less than10,000
population and some cities with less than 25,000 population</td>
<td>Develop new apartments</td>
<td>$1,000,000 maximum</td>
<td><p>6.75% fixed;</p>
<p>30 years with 50-year amortization</p></td>
<td>Very competitive program -- USDA may provide subsidies to keep the
units affordable to low income tenants</td>
<td>Once a year with annual competition at national level</td>
<td rowspan="4"><p>USDA State Office</p>
<p>(Multi-Family Housing Programs)</p></td>
</tr>
<tr class="odd">
<td><strong>Banks and other lenders making loans to developers, tribes,
or public agencies</strong></td>
<td><p><strong>GRRH 538 Loan</strong></p>
<p>Guaranteed Rural Rental Housing Loan</p></td>
<td>Creates incentive for commercial lenders to develop / repair
apartments for low and moderate income tenants</td>
<td>USDA guarantees loan made by banks</td>
<td>Guaranteed loans to develop new apartments or buy and renovate
existing apartments</td>
<td>$2 million+</td>
<td>Negotiated between borrower and lender</td>
<td>Lender-driven: there must be a lender willing to make the loan --
(USDA only guarantees the loan)</td>
<td><p>Year round</p>
<p>at national level</p></td>
</tr>
<tr class="even">
<td><strong>Nonprofit limited partnerships, non-profits, public bodies
(e.g., housing authorities), and farmers</strong></td>
<td><p><strong>FLH 514/516 Loan and Grant</strong></p>
<p>Farm Labor Housing Direct Loan and Grant</p></td>
<td>Develops and repairs housing projects for farm workers</td>
<td>USDA makes loan (with some grants) for farm labor housing</td>
<td>No population restriction so long as project serves farm labor</td>
<td>Develop new or buy and renovate existing farm labor housing
projects</td>
<td><p>$1 million -</p>
<p>$2 million</p></td>
<td><p>1% fixed;</p>
<p>33 years</p></td>
<td>Very competitive program – grants may be included with loan funds in
order to keep the farm labor housing affordable</td>
<td>Once a year with annual competition at national level</td>
</tr>
<tr class="odd">
<td><strong>Nonprofits, tribes, and public bodies (e.g., cities and
counties)</strong></td>
<td><p><strong>HPG 533 Grant</strong></p>
<p>Housing Preservation Grant</p></td>
<td>Supports programs that correct access, safety, health problems in
homes and rental units</td>
<td>USDA makes grant to support local housing rehabilitation
projects</td>
<td>Unincorporated areas, cities with less than10,000 population and
some cities with less than 25,000 population</td>
<td>Any program that offers affordable assistance (loans, grants,
subsidies, technical assistance, etc.) to repair low income housing</td>
<td>$80,000-$120,000</td>
<td>Grant</td>
<td>Very competitive program -- preference is given to projects with
matching funds and targeting low income people</td>
<td>Once a year with annual competition at state level</td>
</tr>
</tbody>
</table>

#  {#section-5}

# Special Rural Development Initiatives in California

USDA Rural Development has established a number of special initiatives
to target its assistance to rural communities with the greatest need.

+----------+------------------------------+---------------------------+
| **Init   | ######## Program Description | **Assistance / Contact**  |
| iative** |                              |                           |
+----------+------------------------------+---------------------------+
| *        | Multi-agency assistance to   | USDA gives higher         |
| *Federal | Central Valley low-income,   | priority in allocating    |
| Int      | high unemployment counties   | these program funds and   |
| eragency | of Fresno, Kern, Kings,      | seeks greater leverage in |
| Task     | Merced, Madera, Tulare,      | concert with other        |
| Force**  | Stanislaus                   | federal programs \--      |
| on the   |                              | contact ­­­­ Chris Sundstrom  |
| Economic |                              | at 559-734-8732           |
| Dev      |                              |                           |
| elopment |                              |                           |
| of the   |                              |                           |
| Central  |                              |                           |
| San      |                              |                           |
| Joaquin  |                              |                           |
| Valley   |                              |                           |
+----------+------------------------------+---------------------------+
| **SW     | Multi-agency assistance to   |                           |
| Border** | communities within 150 miles |                           |
|          | of the Mexican border        |                           |
| Task     |                              |                           |
| Force on |                              |                           |
| Economic |                              |                           |
| Dev      |                              |                           |
| elopment |                              |                           |
| of the   |                              |                           |
|          |                              |                           |
| S        |                              |                           |
| outhwest |                              |                           |
| Border   |                              |                           |
+----------+------------------------------+---------------------------+
| #######  | Multi-Family and Single      | USDA gives higher         |
| Colonias | Family housing and utilities | priority in allocating    |
|          | development assistance for   | these program funds --    |
| Com      | "Colonias" within 150 miles  | contact USDA Local        |
| munities | of US -- Mexico border       | Offices                   |
+----------+------------------------------+---------------------------+
| *        | Multi-program assistance for | USDA devotes funds in     |
| *EZ/EC** | competitively selected       | nearly every program to   |
|          | communities demonstrating    | assist EZ/EC communities  |
| Emp      | superior cooperation,        | \-- contact ­­­­ Chris        |
| owerment | planning and vision \--      | Sundstrom at 559-734-8732 |
| Zone /   | rural EZ/ECs are in          |                           |
| En       | Imperial, Fresno, Tulare     |                           |
| terprise | Counties, eastern Riverside  |                           |
| C        | County and the City of       |                           |
| ommunity | Watsonville                  |                           |
+----------+------------------------------+---------------------------+
| **CC**   | Multi-program assistance for | USDA gives Champion       |
|          | EZ/EC applicant communities  | Communities higher        |
| Champion | that were not selected but   | priority in allocating    |
| Com      | are continuing to work       | rural program funds \--   |
| munities | toward their vision          | contact ­­­­ Chris Sundstrom  |
|          |                              | at 559-734-8732           |
+----------+------------------------------+---------------------------+
| **Self   | Low and very low-income      | Significant RH 502 loan   |
| Help**   | applicants participate with  | funds are reserved for    |
|          | their neighbors in the       | Self-Help subdivisions    |
| Self     | construction of their homes, | every year \-- contact    |
| Help     | fostering pride-of-ownership | Bob Anderson at           |
| Housing  | while reducing their home    | 530-792-5816 ­­­             |
|          | loans to a more affordable   |                           |
| Program  | level                        |                           |
+----------+------------------------------+---------------------------+
| **       | USDA supports value-added    | USDA provides technical   |
| CO-OPS** | agricultural cooperatives    | assistance, grants and    |
|          | and other types of co-ops    | guaranteed loans to       |
| Coop     |                              | co-ops \-- contact Karen  |
| eratives |                              | Spatz at 530-792-5829     |
| In       |                              |                           |
| itiative |                              |                           |
+----------+------------------------------+---------------------------+
| **CAIP** | Supplemental USDA business   | Extra B and I Guaranteed  |
|          | program funding for counties | Loan funds are available  |
| C        | suffering job losses from    | to support business       |
| ommunity | NAFTA (North American Free   | projects in these         |
| Ad       | Trade Agreement)             | designated areas \--      |
| justment |                              | contact Larry Strong at   |
|          |                              | 530-792-5805              |
| and      |                              |                           |
| In       |                              |                           |
| vestment |                              |                           |
| In       |                              |                           |
| itiative |                              |                           |
+----------+------------------------------+---------------------------+
| **ARMS** | USDA partnership with the    | USDA provides B & I       |
|          | Department of the Army to    | Guaranteed Loans to       |
| Armament | stimulate commercial use of  | businesses locating in    |
| R        | the Riverbank Army           | unused space on this      |
| etooling | Ammunition Plant in          | military property,        |
|          | Stanislaus County            | supplementing the Army's  |
| and      |                              | favorable tenant terms    |
| Manuf    |                              | \-- contact Larry Strong  |
| acturing |                              | at 530-792-5805           |
|          |                              |                           |
| Support  |                              |                           |
| Program  |                              |                           |
+----------+------------------------------+---------------------------+