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# Official Resource Directory for USDA Rural Development of Minnesota

May 2005

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**Introduction\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....1**

**Area Office
Locations\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....2**

**Single-Family
Housing\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...3**

**Direct Single-Family Housing Loans\...\...\...\....4**

**Guaranteed Single-Family Housing Loans\...\...\...5**

**Repair Loans and Grants\...\...\...\...\...\...\...\...6**

**Self-Help Technical Assistance Grants\...\...\....7**

**Rural Housing Site Loans\...\...\...\...\...\...\.....8**

**Multi-Family
Housing\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....9**

**Rural Rental Housing Loans\...\...\...\...\...\...\...10**

**Guaranteed Rural Rental Housing Loans\...\...\....12**

**Farm Labor Housing Loans and Grants\...\...\...\...13**

**Housing Preservation Grants\...\...\...\...\...\.....14**

**Rural Utilities
Service\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....15**

**Water and Waste Disposal Loans and Grants\...\...16**

**Technical Assistance and Training Grants\...\....17**

**Solid Waste Management Grants\...\...\...\...\...\...18**

**Distance Learning and Telemedicine Grants and
Loans\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....19**

**Office of Community Development\...\...\...\...\...\...\...\.....21**

**Community
Programs\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....22**

**Community Facility Guaranteed Loans\...\...\...\...23**

**Community Facility Direct Loans and Grants\.....24**

**Rural Business and Cooperative Services\...\...\...\...\....25**

**Business and Industry Guaranteed Loans\...\...\...26**

**Rural Business Enterprise Grants\...\...\...\...\...28**

**Intermediary Relending Program\...\...\...\...\.....29**

**Rural Business Opportunity Grants\...\...\...\.....30**

**Rural Economic Development Loans and Grants\....32**

**Value-Added Agricultural Product Market Development Grant
Program\...\...\...\...\...\...\...\...\...\...\...\...\...33**

**Renewable Energy Systems and Energy Efficiency Improvement
Program\...\...\...\...\...\...\...\...\...\...\...34**

**Rural Cooperative Development Grants\...\...\.....36**

**Cooperative Services Technical Assistance\...\...37**

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USDA Rural Development in Minnesota is committed to helping improve the
economy and quality of life in all of rural Minnesota. Through our
programs, we touch rural Minnesota in many ways.

Our financial programs support such **essential public facilities and
services** as water and sewer systems, housing, health clinics,
emergency service facilities and electric and telephone service. We
promote **economic development** by supporting loans to businesses
through banks and community-managed lending pools. We offer **technical
assistance and information** to help agricultural and other cooperatives
get started and improve the effectiveness of their member services. And
we provide technical assistance to help communities undertake
**community empowerment programs**.

USDA Rural Development invested over \$2 billion in Minnesota the last
four years. That is more than twice the national average.

Rural Development achieves its mission by helping rural Minnesotans,
communities and businesses obtain the financial and technical assistance
needed to address their diverse and unique needs. Rural Development
works to make sure that rural citizens can participate fully in the
global economy.

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+------------------------------------+-------------------+------------+
| Location (Counties Served)         | Address           | Phone/Fax  |
+------------------------------------+-------------------+------------+
| **[Alexandria]{.underline}**       | 900 Robert St. NE | P: (320)   |
| (Douglas, Pope, Grant, Traverse,   | #103              | 763-3191   |
| Stevens, Wilkin, Todd, Otter Tail, |                   |            |
| Wadena)                            | Alexandria, MN    | F: (320)   |
|                                    | 56308             | 762-5502   |
+------------------------------------+-------------------+------------+
| **[Austin]{.underline}** (Mower,   | 101 21^st^ St. SE | P: (507)   |
| Dodge, Winona, Blue Earth,         |                   | 437-8247   |
| Freeborn, Fillmore, Faribault,     | Austin, MN 55912  |            |
| Houston, Olmstead)                 |                   | F: (507)   |
|                                    |                   | 437-8567   |
+------------------------------------+-------------------+------------+
| **[Bemidji]{.underline}**          | 3217 Bemidji Ave. | P: (218)   |
| (Beltrami, Lake of the Woods,      | N                 | 751-1942   |
| Clearwater)                        |                   |            |
|                                    | Bemidji, MN       | F: (218)   |
|                                    | 56601-4300        | 751:9531   |
+------------------------------------+-------------------+------------+
| **[Baxter]{.underline}** (Crow     | 7118 Clearwater   | P: (218)   |
| Wing, Cass, Aitkin)                | Rd.               | 829-5965   |
|                                    |                   |            |
|                                    | Baxter, MN 56425  | F: (218)   |
|                                    |                   | 829-8764   |
+------------------------------------+-------------------+------------+
| **[Buffalo]{.underline}** (Wright, | 306B Brighton     | P: (763)   |
| Ramsey, Hennepin, Carver, Sibley,  | Ave. S            | 682-1151   |
| McLeod, Nicollet)                  |                   |            |
|                                    | Buffalo, MN 55313 | F: (763)   |
|                                    |                   | 682-2903   |
+------------------------------------+-------------------+------------+
| **[Cambridge]{.underline}**        | 380 South         | P: (763)   |
| (Anoka, Chisago, Isanti, Kanabec,  | Garfield          | 689-3354   |
| Washington                         |                   |            |
|                                    | Cambridge, MN     | F: (763)   |
|                                    | 55008             | 689-2309   |
+------------------------------------+-------------------+------------+
| **[Detroit Lakes]{.underline}**    | 809 8^th^ St. SE  | P: (218)   |
| (Becker, Mahnomen, Hubbard,        |                   | 847-9392   |
| Norman, Clay)                      | Detroit Lakes, MN |            |
|                                    | 56501             | F: (218)   |
|                                    |                   | 847-8910   |
+------------------------------------+-------------------+------------+
| **[Duluth]{.underline}** (South    | 4850 Miller Trunk | P: (218)   |
| St. Louis, Carlton, Pine, Cook,    | Hwy.              | 720-5330   |
| Lake)                              |                   |            |
|                                    | Suite 1B          | F: (218)   |
|                                    |                   | 720-3129   |
|                                    | P.O. Box 15068    |            |
|                                    |                   |            |
|                                    | Duluth, MN 55815  |            |
+------------------------------------+-------------------+------------+
| **[Faribault]{.underline}** (Rice, | 1810 30^th^ St.   | P: (507)   |
| Goodhue, Scott, Dakota, Steele,    | NW #3             | 332-7418   |
| LeSueur, Wabasha, Waseca)          |                   |            |
|                                    | Faribault, MN     | F: (507)   |
|                                    | 55021             | 332-9892   |
+------------------------------------+-------------------+------------+
| **[Marshall]{.underline}** (Lyon,  | 1424 East College | P: (507)   |
| Brown, Lac qui Parle, Redwood,     | Dr.               | 532-3234   |
| Lincoln, Yellow Medicine)          |                   |            |
|                                    | Suite 500         | F: (507    |
|                                    |                   | 532-7479   |
|                                    | Marshall, MN      |            |
|                                    | 56258             |            |
+------------------------------------+-------------------+------------+
| **[Thief River                     | 201 Sherwood Ave. | P: (218)   |
| Falls]{.underline}** (Pennington,  | S                 | 681-2843   |
| Marshall, Red Lake, Roseau,        |                   |            |
| Kittson, Polk)                     | P.O. Box 16       | F: (218)   |
|                                    |                   | 681-4732   |
|                                    | Thief River       |            |
|                                    | Falls, MN 56701   |            |
+------------------------------------+-------------------+------------+
| **[Virginia]{.underline}**         | 230 1^st^ St.     | P: (218)   |
| (Itasca, N. St. Louis,             | South #104        | 741-3929   |
| Koochiching)                       |                   |            |
|                                    | Virginia, MN      | F: (218)   |
|                                    | 55792             | 741-9407   |
+------------------------------------+-------------------+------------+
| **[Waite Park]{.underline}**       | 110 South 2^nd^   | P: (320)   |
| (Stearns, Sherburne, Benton, Mille | St. #120          | 255-9111   |
| Lacs, Morrison)                    |                   |            |
|                                    | Waite Park, MN    | F: (320)   |
|                                    | 56387             | 255-1455   |
+------------------------------------+-------------------+------------+
| **[Willmar]{.underline}**          | 1005 High Ave. NE | P: (320)   |
| (Kandiyohi, Meeker, Renville, Big  |                   | 235-5612   |
| Stone, Swift, Chippewa)            | P.O. Box 1013     |            |
|                                    |                   | F: (320)   |
|                                    | Willmar, MN 56201 | 235-0984   |
+------------------------------------+-------------------+------------+
| **[Worthington]{.underline}**      | 1567 North        | P: (507)   |
| (Nobles, Jackson, Rock,            | McMillan St.      | 372-7783   |
| Cottonwood, Murray, Pipestone,     |                   |            |
| Watnowan, Martin)                  | Worthington, MN   | F: (507)   |
|                                    | 56187             | 372-7751   |
+------------------------------------+-------------------+------------+
| **[North Branch]{.underline}**     | 38694 Tanger Dr.  | P: (651)   |
| (Single Family Guaranteed Housing  |                   | 674-7051   |
| Office)                            | North Branch, MN  |            |
|                                    | 55056             | F: (651)   |
|                                    |                   | 674-8016   |
+------------------------------------+-------------------+------------+

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**Single Family Housing Programs**

**Program Director: Lance Larson**

**Phone: (651) 602-7792**

**E-mail: <lance.larson@mn.usda.gov>**

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**PROGRAM DESCRIPTION:** A direct home loan program for families seeking
financing to purchase a new or existing dwelling.

**TYPE OF ASSISTANCE:** A subsidized housing program offering loan
benefits such as:

• Down payment assistance to enable purchase with a loan through a
private lending source (USDA Rural Development accepts a junior lien
behind the primary lender).

• Sole source of assistance. Sole source assistance is limited to
families who are unable to obtain any part of the needed credit from
another lending source.

**ELIGIBILITY REQUIREMENTS:** Applicant family must:

• Have an acceptable credit history.

• Have an adequate and dependable income not exceeding 80 percent of the
county median income.

• Have repayment capacity to service any existing obligations and the
home loan request.

• Be without adequate housing.

• Be a citizen or a non-citizen admitted to the United States of America
for permanent residence or on indefinite parole.

• Have the ability to personally occupy the home on a permanent basis.

• Be located in a community with a population of 20,000 or less.

**FUND AVALIABILITY AND MAXIMUM AMOUNTS:** Funding is based upon an
annual appropriation. Loans may be for an amount up to 100 percent of
the appraised value of the property. Loans may also be subsidized. The
maximum purchase price and/or loan amount differs per county (visit
[www.rurdev.usda.gov/mn/housing7](http://www.rurdev.usda.gov/mn/housing7)).

**INTEREST RATE:** Interest rates are fixed. Most loans are made with a
subsidy provision to enhance affordability. When a subsidy agreement is
in effect, the interest rate may be reduced for qualifying families to
as low as 1% APR on USDA Rural Development's loan or portion of the
loan. The subsidy agreement is based on a family's income and other
borrower characteristics. The subsidy is subject to change annually to
reflect changes in the borrower's situation. Subsidy agreements may be
renewed indefinitely. Subsidized loans are subject to recapture for a
portion of the subsidy granted when the property is either sold or no
longer used as a home for the borrower.

**Terms:** Maximum repayment period is typically 33 years. However, 30-
and 38-year terms may be provided depending on applicant qualifications
and security offered.

**COLLATERAL:** Mortgage on real estate financed.

**CREDIT REQUIREMENTS:** Applicant family must have a credit record that
reflects a history of meeting obligations as they become due.

**CONTACT:** Visit your local USDA Rural Development office to fill out
an application.

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**PROGRAM DESCRIPTION:** A guaranteed loan program to lenders serving
families seeking financing for home ownership.

**TYPE OF ASSISTANCE:** A non-subsidized home ownership financing
program targeting first time home buyers. Loans may be up to 100 percent
loan to value.

**ELIGIBILTY REQUIREMENTS:** Applicant family must:

• Have an acceptable credit history.

• Have an adequate and dependable family income not exceeding 115
percent of the county median income.

• Have repayment capacity (based on payments as a percentage of gross
family income). Maximum rations: 29 percent for principal, interest,
taxes, and insurance/41 percent total obligations.

• Be a citizen or a non-citizen admitted to the United States of America
for permanent residence or on indefinite parole.

• Be without adequate housing.

• Have the ability to personally occupy the home on a permanent basis.

• Be located in a community with a population of 20,000 or less.

• The property must meet HUD minimum property standards.

**FUND AVALIABILITY AND MAXIMUM LOAN AMOUNTS:** Funding is based upon
annual appropriations. There is no maximum loan amount, other than the
borrower's repayment capacity.

**INTEREST RATE:** Negotiated between the lender and the borrower
(cannot exceed Fannie Mae's 90-day actual/actual rate plus 60 basis
points).

**TERMS:** 30-year fixed mortgage on real estate financed.

**FEES:** Guaranteed fee of 1.5 percent of the loan amount is charged to
the lender.

**CREDIT REQUIREMENTS:** Applicant family must have a credit record,
which reflects a history of meeting obligations as they become due.

**CONTACT:** Applications are filed with local lending institutions
(banks, savings & loan institutions, mortgage brokers, etc.) throughout
the state. For a listing of approved lenders, contact program director
Lance Larson at the USDA Rural Development state office in St. Paul at
(651) 602-7792 or <lance.larson@mn.usda.gov>. You can also check with a
local lending institution.

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**PROGRAM DESCRIPTION:** Low interest home improvement loans and grants,
designed for very low-income individuals (50 percent or less of country
median income.)

**TYPE OF ASSISTANCE:** Funds can be used for making basic repairs,
installing essential features or to remove health and safety hazards.

**ELIGIBILITY REQUIREMENTS:** Must be a rural resident or living in a
town of up to 20,000 population, have a reasonable credit history, own
inadequate (but repairable) housing, have a very low adjusted income and
unable to obtain credit elsewhere. To qualify for grant funds, must be
62 years or older and be unable to repay a loan.

**FUND AVALIABILITY AND MAXIMUM AMOUNTS:** Funding is based upon an
annual appropriation. The maximum loan limit at one time is \$20,000.
The lifetime grant maximum is \$7,500.

**INTEREST RATE:** Interest rate is 1% APR on loans.

**TERMS:** Loan repayment is based on repayment ability, but cannot
exceed 20 years. A three-year grant agreement is required.

**COLLATERAL:** A mortgage is taken when the loan is \$7,500 or more.

**FEES:** None.

**CREDIT REQUIREMENTS:** Reasonable credit history.

**CONTACT:** Visit your local USDA Rural Development office to fill out
an application.

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**PROGRAM DESCRIPTION:** Technical Assistance (TA) grants to an
organization to pay the cost of developing and administering a program
of technical and supervisory assistance to aid very low and low income
families build their own homes. The dual purpose of this program is to
fund organizations that are willing to locate and work with families
that otherwise do not qualify as homeowners and help those families
learn the skills of maintaining a home by participating in its
construction.

**TPYE OF ASSISTANCE:** Eligible applicants may qualify for two separate
grants under this program. In addition to the TA grant, an additional
pre-development grant of up to \$10,000 may be available if the
applicant organization lacks the financial resources to assemble the TA
grant application.

**ELIGIBILITY REQUIREMENTS:** Applicant or organization must be a state,
political subdivision, public nonprofit corporation (including Indian
tribes or Tribal Corporation) or qualifying private non-profit
corporation.

**FUND AVALIABILITY AND MAXIMUM GRANT AMOUNT:** Funding is based upon
annual appropriations. The TA grant depends on the experience and
capabilities of the applicant, and must be justified based upon the
number of families to be assisted.

**TERMS:** A TA grant agreement may be for up to two years, depending
upon the size and complexity of the TA grant proposal.

**FEES:** None.

**CONTACT:** Visit your local USDA Rural Development office to fill out
a pre-application.

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**PROGRAM DESCRIPTION:** USDA Rural Development makes loans to finance
building sites, which may be developed into desirable residential
communities.

**TYPE OF ASSISTANCE:** Section 523 loans made for housing to be built
under the Self-Help method of home construction may be made in
conjunction with Section 524 site loans.

**ELIGIBILITY REQUIREMENTS:** Loans can be made to public or private
local non-profit organizations with legal authority to buy, develop and
sell home sites to eligible applicants.

**FUND AVALIABILITY:** Funding is held at the national level and the
state office must request an allocation for each loan.

**INTEREST RATE:** Section 523 loans have a 3 percent interest rate.
Section 524 loans are based upon market conditions.

**TERMS:** Two years.

**COLLATERAL:** Each loan will be adequately secured to protect the
interest of the Government.

**FEES:** None.

**CREDIT REQUIREMENTS:** No down payment required. Applicants should
have resources available to put together the application, which among
other documents will require a site plan.

**CONTACT:** Visit your local USDA Rural Development office to fill out
an application.

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**Multi-Family Housing Programs**

**Program Director: Jackie Morris**

**Phone: (651) 602-7820**

**E-mail:
[jackie.morris@mn.usda.gov](mailto:jackei.morris@mn.usda.gov)**

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**\
**

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**PROGRAM DESCRIPTION:** Direct subsidized loan program to develop
economically designed and constructed rental or cooperative housing and
related facilities. The housing projects are developed in rural areas to
provide living units for households with very low, low, and moderate
incomes.

**TYPE OF ASSISTANCE:** Low-interest funds may be used to purchase and
improve the necessary land on which the housing will be located;
construct new housing and other related facilities such as community
rooms, recreation centers, manager\'s office, storage and maintenance
shops, and laundry facilities; or purchase and rehabilitate existing
buildings under certain circumstances. Eligible housing types include
family, elderly, congregate, group homes, and cooperative. Rental
assistance may also be available for eligible tenants.

**ELIGIBILITY REQUIREMENTS:** Applicants may be individuals,
organizations, or tribes, who have the ability, experience, legal and
financial capacity, and intention to maintain and operate the housing
for the purpose for which the loan is made, and are unable to obtain the
necessary credit from a conventional source at reasonable rates and
terms.

**FUND AVAILABILITY:** The amount of funds available in Minnesota will
be published as an annual Notice of Funding Availability (NOFA) in the
Federal Register. Applications will be accepted each year during the
funding cycle for proposed housing projects located in a target
community.

**INTEREST RATE:** Loans will be closed at the current market rate with
an Interest Credit Agreement executed, which reduces the effective rate
to a minimum of 1 percent.

**TERMS:** The payment period will not exceed 30 years; however, if
necessary to ensure affordability, the loan may be amortized for a
period not to exceed 50 years. Loans may not be prepaid.

**COLLATERAL:** Each loan will be secured by a first mortgage on the
property purchased or improved with the loan. A financing statement will
be executed at loan closing pledging all revenue from the housing
project.

**FEES:** None.

**CREDIT REQUIREMENTS:** For all applicants who will be receiving any
benefits from Low-Income Housing Tax Credits (LIHTC), 5 percent of the
total development cost will be required as an equity contribution. For
all nonprofits, consumer cooperatives, or State or local public
agencies, not receiving any benefits from LIHTC, no equity is required.
For all other applicants not receiving benefits from LIHTC, a 3 percent
equity contribution is required.

**CONTACT:** NOFA information, application packets, and a list of
designated places (target communities) are available through the
Multi-Family Housing division at the USDA Rural Development state office
in St. Paul (375 Jackson St., Suite 410; 651-602-7800).

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**PROGRAM DESCRIPTION:** Loan guarantees are provided in partnership
with public and private lending institutions to provide rental housing
for low and moderate income households in rural areas.

**TYPE OF ASSISTANCE:** Loan purposes include new construction, and
purchase and rehabilitation of existing housing projects. Focus will be
on the creation of new units and related facilities, not refinancing.
Eligible housing types include family, elderly, rental mobile homes and
parks, and congregate.

**ELIGIBILITY REQUIREMENTS:** Borrowers may be nonprofit corporations,
public bodies, or for-profit entities. Eligible lenders are those
approved and currently active in the HUD/FHA, Fannie Mae, or Freddie Mac
multifamily housing programs, and State or local housing finance
agencies, members of the Federal Home Loan Bank System or other lenders
who receive approval from RHS. Eligible tenants are those with household
incomes that do not exceed 115% of the area median income.

**FUND AVAILABILITY:** The guarantee budget authority will be published
as an annual Notice of Funds Availability (NOFA) in the Federal
Register. Lender responses will be accepted each year during the funding
cycle. The guarantee will be limited to 90 percent of the loan amount.

**INTEREST RATE:** The interest rate will be negotiated between the
lender and borrower and must not exceed the maximum rate specified in
the annual NOFA. The loan must bear a fixed rate of interest over the
entire term.

**TERMS:** Terms of loans guaranteed may be up to 40 years and must be
fully amortized. Loans must remain affordable to eligible households for
the term of the loan - this requirement is statutory.

**COLLATERAL:** A first mortgage or deed of trust is required.

**FEES:** A fee of \$2,500 will be collected when a formal application
is filed. The initial loan guarantee fee is 1 percent of the note
principal amount times the percentage of guarantee. The annual servicing
fee is 0.5 percent of the outstanding loan balance.

**CREDIT REQUIREMENTS:** A 3 percent equity contribution will be
required from nonprofit or public body owners. A 10 percent equity
contribution will be required from for-profit owners.

**CONTACT:** NOFA information, program information packet, and lender
briefing packet are available through the Multi-Family Housing division
at the USDA Rural Development state office in St. Paul (375 Jackson St.,
Suite 410; 651-602-7800).

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height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Direct loan and grant program to develop
decent, safe, and affordable housing for domestic and migrant farm
laborers and their families.

**TYPE OF ASSISTANCE:** Loans and grants may be used to purchase and
improve the necessary land on which the housing will be located;
construct new housing and other related facilities such as recreation
centers, manager\'s office, laundry room, and child day care facilities;
or purchase and rehabilitate existing buildings. Rental assistance may
be available for eligible tenants.

**ELIGIBILITY REQUIREMENTS:** Applicants must be a farmowner, family
farm partnership, family farm corporation, an association of farmers, a
broad-based nonprofit organization, a nonprofit organization of farm
workers, or tribe who has the ability, experience, legal and financial
capacity, and intention to maintain and operate the housing for the
purpose for which the loan or grant is made. Tenant occupancy is based
on eligible farm labor priorities.

**FUND AVAILABILITY:** The amount of funds available for off-farm
housing projects will be published as an annual Notice of Funds
Availability (NOFA) in the Federal Register. Applications will be
accepted each year during the funding cycle. Funds for on-farm housing
are held in the National Office and will be obligated on a first-come
first-served basis.

**INTEREST RATE:** Farm labor housing loans will be at 1 percent.

**TERMS:** The loan repayment period will not exceed 33 years.

**COLLATERAL:** Each loan will be secured to adequately protect the
financial interest of the Government. A Labor Housing Grant Agreement or
Labor Housing Loan Agreement will be executed along with the mortgage or
other security instrument.

FEES: None.

**CREDIT REQUIREMENTS:** The applicant will contribute at least 10
percent of the total development cost, from its own resources, at the
time of a grant closing. Loans may be made in an amount not to exceed
the security value.

**CONTACT:** NOFA information, and application packets are available
through the Multi-Family Housing Division at the USDA Rural Development
state office in St. Paul (375 Jackson St., Suite 410; 651-602-7800).

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Funds provided to eligible grantees to operate
a program that finances repair and rehabilitation activities to
individual homeowners or rental properties for very-low or low-income
persons.

**TYPE OF ASSISTANCE:** Grantees will provide eligible homeowners,
owners of rental properties, and owners of co-ops with financial
assistance through loans, grants, interest reduction payments or other
comparable financial assistance for necessary repairs and rehabilitation
or replacement housing.

**ELIGIBILITY REQUIREMENTS:** Grantees may be public or private
nonprofit corporations or tribes who have the experience, resources, and
legal capacity to conduct a program providing housing preservation
financial assistance. Assistance recipients will be very-low and
low-income households.

**FUND AVAILABILITY:** The amount of funds available in Minnesota will
be published as an annual Notice of Funds Availability (NOFA) in the
Federal Register. Applications will be accepted each year during the
funding cycle. No one entity can receive more than 50 percent of the
State\'s allocation.

**TERMS:** Activities will be carried out under a one or two-year
program. A Grant Agreement will be executed which outlines the terms and
conditions of the program.

**FEES:** None.

**CONTACT:** NOFA information and application packets are available
through the Multi-Family Housing division at the USDA Rural Development
state office in St. Paul (375 Jackson St., Suite 410; 651-602-7800).

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**Rural Utilities Service**

**Program Director: Bill Slininger**

**Phone: (651) 602-7810**

**E-mail: <bill.slininger@mn.usda.gov>**

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height="2.454861111111111in"}

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height="1.5645833333333334in"}

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height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Funds are for community water, sewer, storm
sewer and solid waste systems.

**TYPE OF ASSISTANCE:** Technical assistance in planning projects.
Funding is by loans and grants.

**ELIGIBILITY REQUIREMENTS:** Applicants are public bodies (city,
township, county or special district), Indian tribes, cooperatives or
other nonprofit organizations. Service area under 10,000 in population.
Applicant must be unable to borrow money elsewhere at rates and terms to
make the project affordable. Grants may be available if the median
household income of the borrower is at or below \$46,993 (per 2000
Federal Census), and if needed to reduce annual costs of the system to
what similar communities are paying.

**INTEREST RATE:** Loan interest rate depends upon the median household
income of the borrower. The rate can be as low as 4.5 percent, and will
usually be no higher than commercial bond rates.

**TERM:** Loan term is up to 40 years. Security is usually a general
obligation bond. Repayment is by special assessments, user fees or
property taxes.

**CONTACT:** Visit your local USDA Rural Development office to fill out
an application.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** To identify and evaluate solutions to water and
waste disposal problems in rural areas; to assist in preparation of USDA
Rural Development grants; to improve operation and maintenance of
existing water and waste disposal systems in rural areas.

**CONTACT:** Applications for assistance in only one state (i.e.
Minnesota) should be made at the USDA Rural Development state office in
St. Paul (375 Jackson St., Suite 410, 651-602-7800). If more than one
state, apply to the Rural Utilities Service, Rural Development, USDA,
Washington D.C. 20250.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** To reduce or eliminate pollution of water
resources and to improve planning and management of solid waste sites.

**FUND AVALIABILITY:** Applications are accepted Oct. 1 through Dec. 31.

**ELIGIBILITY REQUIREMENTS:** Applicants for these grants are private,
non-profit, tax-exempt organizations with proven experience and ability
to provide technical assistance. Grant funds may not be used for
recruiting of applications or to duplicate services already provided by
the organization.

**CONTACT:** Applications for providing assistance in only one state
(i.e. Minnesota) should be made at the USDA Rural Development state
office in St. Paul (375 Jackson St., Suite 410, 651-602-7800). If more
than one state, apply to the Rural Utilities Service, Rural Development,
USDA, Washington, D.C. 20250.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** The Distance Learning and Telemedicine (DLT)
Grant and Loan program was created to encourage and improve telemedicine
services and distance learning service in rural areas through the use of
telecommunications, computer networks and related advanced technologies
by students, teachers, medical professionals and rural residents.
Priority will be given to rural areas that are economically challenged,
costly to serve and are experiencing outward migration. Applicants are
encouraged to obtain community involvement, leverage funding and
cooperate with other rural DLT institutions.

**TYPE OF ASSISTANCE:** The DLT program is established in three separate
parts: Grant Financial Assistance, Combination Loan and Grant Financial
Assistance and Loan Financial Assistance.

[GRANT FINANCIAL ASSISTANCE:]{.underline} Applications are submitted
directly to the National Office in Washington, D.C. The minimum grant is
\$50,000 and the maximum is \$500,000. Selection process is competitive,
based on needs and benefits, rurality of the service area, economic
need, leveraging, innovativeness, cost effectiveness and if in Empowered
Zone/Enterprise Community or Champion Community. Applications must have
matching non-federal funding at a minimum of 42.85 percent. Grants are
limited to the capital costs of setting up the project. Grants cannot be
used for operating costs or transmission facilities.

[COMBINATION LOAN AND GRANT FINANCIAL ASSISTANCE:]{.underline}
Applications are submitted to the USDA Rural Development State Director.
Applicants will receive a fixed proportion of \$10 of loan funds for
every \$1 of grant funds. Eligible use of funds includes the grant
purposes, equipment needed to implement the project (in addition to
telecommunication), providing single site links as long as they are part
of a DLT network, site development when not a major portion of the
project, and acquiring transmission facilities when such facilities
cannot be obtained at a cost that is economically viable for the
project.

[LOAN FINANCIAL ASSISTANCE:]{.underline} Applications are made to the
USDA Rural Development State Director. Loans can be made for any of the
grant, or loan and grant purposes, any costs incurred during the first
two years of operation of the project after approval of assistance, and
costs needed to provide distance learning in broadcasting to rural
areas. These loan purposes are subject to additional requirements in the
regulation.

**ELIGIBLE APPLICANTS:** Incorporated organization, Indian Tribe and
tribal organization, partnership or other legal entity including a
municipal corporation or private corporation organized on a for-profit
or not-for-profit basis, which will operate a school, college,
university, learning center, educational laboratory, library, hospital,
clinic or any rural community facility. Applicants can be a consortium
made up of at least one eligible entity. USDA Rural Development electric
or telecommunication borrowers are eligible for loans to provide service
outside their normal service areas if other providers are unable or
unwilling to provide transmission at an economic cost.

**FUND AVALIABILITY:** Contact the address below or call Bill Slininger
(651-602-7810) or Andrew Gag (218-847-5694) of USDA Rural Development to
learn of funding availability.

**CONTACT:** Applications are made at DLT Branch, Rural Utilities
Service, USDA Rural Development, Washington, D.C. 20250 or by contacting
Bill Slininger or Andrew Gag at the numbers listed above.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Technical assistance is provided to promote
self-sustaining, long-term economic and community development in areas
of pervasive poverty, unemployment and general distress.

**TYPE OF ASSISTANCE:** The types of assistance may include, but are not
limited to:

• Community planning and development

• Development and implementation of community development projects

• Partnership building

• Identification of resources, both financial and technical

• Capacity building

• Data analysis

• Identification of emerging rural issues

Community Development staff is also responsible to administer and be
knowledgeable about various community empowerment programs, such as:

• Rural Community Advancement Program (RCAP)

• Empowerment Zone/Enterprise Communities (EZ/EC)

• Champion Communities (CC)

**ELIGIBILITY REQUIREMENTS:** Priority is given to rural communities and
Native American tribes that have the smallest populations and the
smallest per capita income. However, technical assistance may be
provided to any rural community, tribe or organization if it helps to
empower rural Minnesota.

**CONTACT:** Contact the local USDA Rural Development office in your
area, or the USDA Rural Development state office in St. Paul (375
Jackson St., Suite 410, 651-602-7800) for further assistance.

![](media/image1.jpeg){width="5.990277777777778in"
height="3.327777777777778in"}

**Community Programs**

**Program Director: Bill Slininger**

**Phone: (651) 602-7810**

**E-mail: <bill.slininger@mn.usda.gov>**

![](media/image11.jpeg){width="2.286111111111111in"
height="1.4666666666666666in"}![](media/image12.jpeg){width="2.161111111111111in"
height="1.24375in"}

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Funds are for "essential community" facilities
such as day care, hospitals, schools, clinics, roads, fire halls, etc.
Youth related recreational facilities are also eligible.

**TYPE OF ASSISTANCE:** These are loan guarantees only.

**ELIGIBILITY REQUIREMENTS:** Applicants can be public bodies (city,
township, county or special district), Indian tribes, cooperatives, or
other non-profit organizations. Service area must be unincorporated
areas or towns under 20,000 in population.

**FUND AVALIABILITY:** Funding is generally available.

**INTEREST RATE:** The lender (bank, S&L, insurance company) buys the
guarantee from USDA Rural Development for 1 percent of the amount
guaranteed. Interest rates are negotiated between lender and business.
If variable, they may change no more than quarterly. Interest cannot be
tax-exempt.

**TERMS:** Term of the loan is negotiated with the lender and can be up
to 40 years or the useful life of facility, whichever is less.

**COLLATERAL:** Collateral must be adequate. It may be such things as
general obligation or revenue bonds, pledge of taxes or assessments,
land, easements, rights, buildings, machinery and equipment, accounts
receivable and assignment of leases. Appraisals are required.

**CREDIT REQUIREMENTS:** No marginal loans can be guaranteed. However,
the borrower must be unable to obtain credit at reasonable rates and
terms from other sources. No guarantee can be made to a Federal or state
agency, or for a tax-exempt obligation. Maximum guarantee will be 90
percent. The guaranteed portion of the loan does not count against a
financial institution's lending limits.

**CONTACT:** Visit your local USDA Rural Development office to apply.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Funds are for essential community facilities
(CF) with emphasis on day care and health and safety facilities.
Examples include day care centers, fire halls, fire trucks, clinics,
nursing homes and hospitals. CF loans and grants may also be used for
such things as activity centers for the handicapped, schools, libraries
and other community buildings.

**TYPE OF ASSISTANCE:** Applicant must be unable to borrow money
elsewhere at rates and terms to make the project affordable. Leveraging
is highly recommended due to limited CF allocations. The amount of grant
funds provided for a facility shall not exceed 75 percent of the cost of
developing the facility. Grants are also limited to the amount needed
for financial feasibility and no more than 50 percent of the State
allocation or \$50,000, whichever is greater.

**ELIGIBILITY REQUIREMENTS:** Applicants are public bodies (city,
township, county or special district), Indian tribes, cooperatives, or
other non-profit organizations. The service area must be under 20,000 in
population for loans and grants. Grant recipients must have a median
household income below \$42,993 (2000 census).

**FUND AVALIABILITY:** Applications are scored on a priority point
system based upon population, median household incomes, targeted areas
as defined in the State Strategic Plan, and if health and safety needs
are being met by the proposal. In addition, the State Director may also
assign up to 15 discretionary points to the proposal.

**INTEREST RATE:** Loan interest rate depends upon the median household
income of the borrower. The rate can be as low as 4.5 percent and will
usually be no higher than commercial bonds.

**TERM:** Loan term is up to the useful life of the security or 40
years, whichever is less.

**COLLATERAL:** Collateral is usually a general obligation bond if the
loan is to a public body, otherwise a note and mortgage. Repayment is
from revenue from use of the facility, and backed by taxes if a public
body.

**CONTACT:** Visit your local USDA Rural Development office to apply.

![](media/image1.jpeg){width="5.990277777777778in"
height="3.327777777777778in"}

**Business and Cooperative Programs**

**Program Director: David Gaffaney**

**Phone: (651) 602-7814**

**E-mail:
[david.gaffaney@mn.usda.gov](mailto:bill.slininger@mn.usda.gov)**

![](media/image13.jpeg){width="2.6666666666666665in"
height="1.4465277777777779in"}

![](media/image14.jpeg){width="2.1597222222222223in"
height="1.6194444444444445in"}

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** These are loan guarantees with an upper limit
of \$25 million. For rural agriculture cooperatives, the Administrator
in Washington may grant an exception up to \$40 million. There is no
lower limit for these guarantees. Loans are made by lenders to
businesses which save or create jobs or improve the economic or
environmental climate in rural areas (generally, populations of under
50,000).

In Minnesota, rural areas include everywhere except Minneapolis/St. Paul
and approximately two rings of suburbs, Duluth (including Hermantown and
Proctor), Rochester (including the Townships of Cascade, Marion and
Rochester), Moorhead (including Dillworth), St. Cloud (and surrounding
suburbs) and LaCrescent.

**TYPE OF ASSISTANCE:** Most business purposes are eligible, for
example: building and equipment purchase or development, working capital
(no lines of credit); aquaculture; commercial nurseries; tourist and
recreation facilities (except golf courses); hotels and motels;
community facility-type projects; facilities for lease to private
businesses; and housing development sites.

**LENDERS AND BORROWERS:** Most traditional lenders are eligible, plus
Farm Credit System Institutions, credit unions supervised by the NCUA,
regulated insurance companies and the National Rural Utilities
Cooperative Finance Corporation. USDA Rural Utility Service borrowers
and other non-traditional lenders may be considered for eligibility
based upon experience and expertise. Eligible borrowers may generally be
an individual, cooperative, corporation, partnership, non-profit
corporation, Indian tribes or public body.

**PERCENT OF GUARANTEES AND FEES:** Percent of guarantee is negotiated
with the agency. The maximum is generally 80 percent for loans up to \$5
million, 70 percent for \$5-10 million and 60 percent for \$10-25
million. The guaranteed portion of the loan does not count against the
financial institution's lending limits. All or part of the guaranteed
portion may be sold in the secondary market. The lender must retain a
minimum of 5 percent of the total loan. This 5 percent must be part of
the unguaranteed portion of the loan. The agency charges a one-time,
up-front fee of 2 percent of the guaranteed amount.

**SECURITY AND REPAYMENT:** The lender will ensure that collateral is
sufficient after discontinuing in accordance with the bank's normal
policies. All collateral must secure the entire loan. Repayment must be
reasonably assured. Personal and corporate guarantees are required. Real
property will be appraised in accordance with FIRREA; chattels will be
evaluated in accordance with normal banking practices. Financial
statements by the borrower must be provided at least annually and in
accordance with GAAP.

**RATES AND TERMS:** Rates and terms are negotiated between lender and
borrower. Rates may be fixed or variable. Maximum term for working
capital is seven years; for machinery and equipment, 15 years; and for
real estate, 30 years. Balloons are not allowed.

**EQUITY:** A minimum of 20 percent tangible balance sheet equity is
required on a new business and 10 percent on an existing business.

**CONTACT:** Applications are made by the lender and the business at the
USDA Rural Development state office in St. Paul (375 Jackson St., Suite
410). More information on USDA Rural Development business programs can
be found at <http://www.rurdev.usda.gov/rbs/busp/bpdir.htm>, or you may
contact David Gaffaney at 651-602-7814.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Grant funds may be used for financing and
developing small and emerging private businesses.

**TYPE OF ASSISTANCE:** Funds can be in the form of a grant (typically
for infrastructure or technical assistance) or for a revolving loan
program to provide financing to the business. The grant cannot be passed
through the business.

**ELIGIBILITY REQUIREMENTS:** Applicants are public bodies, non-profit
associations and Indian tribes. Businesses must meet the following
requirements:

• 50 or fewer new employees

• Less than \$1 million in projected gross revenues

• Must be located in a rural area with a population of less than 50,000

Projects meeting the following criteria will receive higher
consideration:

• The area's unemployment rate exceeds the State rate

• The median household income is less than the State's total median
household income by the 1990 census

• The applicant has substantial experience in administering such
programs

• A specific industry is committed to locate on the site, and

• The application is less than \$100,000.

**USE OF FUNDS:** There is no maximum dollar limit for any one project.

**CONTACT:** Information about USDA Rural Development business programs
can also be found at <http://www.rurdev.usda.gov/rbs/busp/bpdir.htm>.
You may also contact Paul Pierson at 507-372-7784 (x122) for projects
located in southern Minnesota and Kathy Coyle at (218) 847-5694 for
projects located in the northern half of Minnesota.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Intermediary Relending Program (IRP) money is
lent to entities, who in turn relend it to ultimate recipients. Ultimate
recipients must be unable to obtain credit elsewhere at reasonable rates
and terms.

**TYPE OF ASSISTANCE:** To finance business facilities and community
development projects in rural areas, innovative projects, land, building
construction or repair, equipment, working capital, interest,
feasibility studies, and fees for professional services.

**ELIGIBILITY REQUIREMENTS:** Intermediaries (or borrowers) are private
non-profit corporations, any state or local government, an Indian tribe,
or a cooperative. Ultimate recipients must reside in rural areas of less
than 25,000.

**MAXIMUM AMOUNTS:** Maximum USDA Rural Development funding is \$15
million per intermediary. Initial or subsequent applications are limited
to \$750,000 each. Maximum loan to ultimate recipients is the lesser of
\$250,000 or 75 percent of the total project cost. However, no more than
25 percent of an IRP loan approved may be used for loans to ultimate
recipients that exceed \$150,000. This limit does not apply to revolved
funds.

**INTEREST RATE:** The interest rate to an intermediary is 1 percent.
Rates to ultimate recipients will be negotiated.

**TERM:** The maximum term is 30 years.

**COLLATERAL:** Collateral can be real or personal property or pledged
securities of intermediary or ultimate recipient.

**CONTACT:** Applications are made at the USDA Rural Development state
office in St. Paul (375 Jackson St., Suite 410). Funding selections are
made in Washington D.C. Information about USDA Rural Development
business programs can also be found at
<http://www.rurdev.usda.gov/rbs/busp/bpdir.htm> or you may contact Robyn
Holdorf at 651-602-7812.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Grant funds may be used to assist in the
economic development of rural areas by providing technical assistance
for business development and economic development planning.

**TYPE OF ASSISTANCE:** Grants may be used to:

• Identify and analyze business opportunities that will use local rural
materials or human resources. This includes opportunities in export
markets, as well as feasibility and business plan studies.

• Identify, train and provide technical assistance to existing or
prospective rural entrepreneurs and managers.

• Establish business support centers and otherwise assist in the
creation of new rural businesses.

• Conduct local community or multi-county economic development planning.

• Establish centers for training, technology and trade that will provide
training to rural businesses in the utilization of interactive
communications technologies to develop international trade opportunities
and markets.

• Conduct leadership development training of existing or prospective
rural entrepreneurs and managers.

• Pay reasonable fees and charges for professional services necessary to
conduct the technical assistance, training or planning functions.

Other considerations:

• Grants may be made only when the proposal includes a basis for
determining the success or failure of the project and individual major
elements of the project and outlines procedures that will be taken to
assess the project's impact at its conclusion.

• Grants may be made only when the proposed project is consistent with
local and area-wide strategic plans for community and economic
development, coordinated with other economic development activities in
the project area and consistent with any USDA Rural Development state
strategic plan.

• A grant may be considered for the amount needed to assist with the
completion of a proposed project, provided that the project can
reasonably be expected to be completed within two full years after it is
begun. If grant funds are requested to establish or assist with an
activity of more than two years duration, the amount of a grant approved
in any fiscal year will be limited to the amount needed to assist with
no more than one full year of operation. Subsequent grant requests may
be considered in subsequent years, if needed to continue the operation,
but funding for one year provides no assurance of additional funding in
subsequent years.

• Grant funds may not be used to duplicate current services or replace
or substitute support previously provided.

**ELIGIBILITY REQUIREMENTS:** Grants may be made to public bodies,
nonprofit corporations, Indian tribes, on Federal or State reservations
and other Federally recognized tribal groups and cooperatives with
members that are primarily rural residents and that conduct activities
for the mutual benefit of the members. Applicants must have sufficient
financial strength and expertise in activities proposed in the
application to ensure accomplishment of the described activities and
objects.

**CONTACT:** Information about USDA Rural Development business programs
can also be found at [http:///www.rurdev.usda.gov/rbs/busp/bpdir.htm]().
You may also contact Paul Pierson at (507) 372-7784 (x122) for projects
located in the southern half of Minnesota and Kathy Coyle at (218)
847-5694 (x121) for projects located in the northern half of Minnesota.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Purpose is to develop projects that will result
in a substantial increase in economic productivity, job creation, and
incomes in rural areas.

**TYPE OF ASSISTANCE:** Projects may include business start-ups and
expansion, community development, incubator projects, medical and
training projects and feasibility studies. Ineligible purposes are those
which directly benefit the borrower, conflicts of interest and costs
incurred prior to application.

**FUND AVALIABILITY:** Funding is either a zero-interest loan or a grant
to the borrower, which in turn is re-lent as a zero-interest loan. The
maximum amount available varies each year. The amounts are subject to
change each fiscal year based upon appropriations. Loan funds are
appropriated by Congress. Grant funds come from the Cushion-of-Credit
accounts-advance payments made by borrowers on their loans. Grant funds
will only be provided for a revolving loan fund.

**TERMS:** For a zero-interest loan, the borrower will sign a promissory
note with a term not to exceed 10 years. Principal may be deferred up to
two years. Funds from other sources must at least equal 20 percent of
the loan and grant amount. All loans will be secured. The borrower must
have a specific recipient at the time of application. All loans to the
recipient will be at zero interest. Repayment by the recipient will
ordinarily equal the term of the loan to the borrower.

Grant funds must be matched 20 percent up-front by the borrower. These
funds will be used initially as a zero-interest revolving loan for
community development assistance to non-profit entities and public
bodies; business incubators established by non-profits; and facilities
and equipment for education, training or medical care of rural residents
owned by public, for profit and non-profit entities.

**CONTACT:** Applications are made at the USDA Rural Development state
office in St. Paul (375 Jackson St., Suite 410). Funding selections are
made in Washington, D.C. More information on USDA Rural Development
business programs can also be found at
<http://www.rurdev.usda.gov/rbs/busp/bpdir.htm> or you may contact Robyn
Holdorf at 651-602-7812.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** The Value Added Development Grant Program
(VADG) was authorized by the Agriculture Risk Protection Act of 2000 and
was amended by the Farm Security and Rural Investment Act of 2002,
better known as the Farm Bill. The Farm Bill establishes four related,
but different programs from the \$40 million of funds per year. The
programs are:

(1) Value-Added Producer Grants (VAPG) -- described in detail below.

(2) Agricultural Marketing Resource Center -- establish value-added
    information resource centers.

(3) Agricultural Innovation Centers (AIC) -- provide marketing, planning
    and technical assistance to value-added businesses.

(4) Agricultural Innovation Research Grant -- university research on the
    impact of value-added activities.

**TYPE OF ASSISTANCE:** Value-Added Producer Grants help producers
expand their customer base by entering into emerging markets for their
products or commodities and ensure that a greater portion of the
revenues derived from the value-added activity is available to the
producer.

**ELIGIBLE APPLICANTS:** Independent producers, cooperatives,
agricultural producer groups (such as commodity groups) and
majority-controlled producer-based groups are eligible to apply.

**ELIGIBLE PRODUCTS:** Four categories are considered "value-added"
under this program.

• Ventures in which agricultural producers add value to their products
through a change in the physical state or form of the product
(processing wheat into flour, corn into ethanol, slaughtering
livestock).

• Producing products in a manner that enhances its value (organic).

• Physical segregation of an agricultural commodity or product in a
manner that results in the enhancement of the value of that product
(IP).

• Any agricultural commodity or product that is used to produce
renewable energy on a farm or ranch (methane digesters, wind turbines).

Priority will be given to proposals that emphasize the development of
renewable energy from agricultural production.

**ELIGIBLE PURPOSES:** Planning grants can be awarded for such
activities as conducting feasibility analyses, developing business and
marketing plans. Working capital grants may be used for expenses
associated with operations while the venture develops cash flow. Some
things that grant funds *cannot* be used for:

• The development or acquisition of buildings or other facilities

• To purchase, rent or install fixed equipment.

• Pay costs incurred prior to receiving the grant

• Pay expenses associated to agricultural production.

**TERMS:** The maximum allowable grant amount is \$500,000. Grant
recipients must provide 1-to-1 matching funds. Projects must be
completed within one year.

**FUND AVALIABILITY:** Selections will be made annually in the National
Office for fiscal years 2002-2007.

**CONTACT:** Visit the USDA Rural Development state office in St. Paul
(375 Jackson St., Suite 410, 651-602-7800) to apply following the
announcement in the Federal Register inviting applications. Additional
information about this program can be found at
<http://www.rurdev.usda.gov/rbs/coops/vadg.htm> or contact Robyn Holdorf
of USDA Rural Development at (651) 602-7812.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Loans, loan guarantees and grants may be
available to help agricultural producers and rural small businesses
purchase renewable energy systems and make energy efficiency
improvements. Rural is defined as an area of less than 50,000 in
population or its immediately adjacent incorporated communities.

**ELIGIBILITY REQUIREMENTS:** Renewable energy means energy derived from
wind, solar, biomass or a geothermal source; or hydrogen derived from
biomass or water using one of those energy sources. It does not include
hydro-power. Biomass includes agricultural crops, trees grown for energy
production, wood waste and wood residues, plants (including aquatic
plants and grasses), residues, fibers, animal wastes and other waste
materials and fats, oils and greases. Biomass does not include paper
that is commonly recycled or unsegregated solid waste.

**TERMS:** The amount of a grant shall not exceed 25 percent of the cost
of the activity funded under this program. To be eligible for a grant,
the applicant must demonstrate financial need. In 2003, applications for
renewable energy systems were for a minimum grant request of \$10,000,
but no more than \$250,000. Individual applicants must be citizens of
the United States or reside in the United States after being legally
admitted for permanent residence. All applications will have a deadline
date to be announced in the spring of 2005.

**FUND AVALIABILITY:** \$23 million annually is available nationwide
from fiscal years 2003-2007.

**FUNDING CYCLE:** Application processing is through the USDA Rural
Development state office in St. Paul (375 Jackson St., Suite 410,
651-602-7800). See the Federal Register for notice of funding available.

**CONTACT:** For more information, call David Gaffaney of USDA Rural
Development at (651) 602-7814.

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**\
PROGRAM DESCRIPTION:** Grants are for establishing and operating centers
for cooperative development. The grant program will be used to
facilitate the creation or retention of jobs in rural areas through the
development of new rural cooperatives and operational improvement of
existing cooperatives by the centers. Cooperative development activities
by the centers include startup, expansion or operational improvement of
a cooperative.

**TYPE OF ASSISTANCE:** Grants may be used to pay up to 75 percent of
the costs for carrying out relevant projects by operating centers for
cooperative development. Purposes may include feasibility studies,
gathering and dissemination of information, training, technical
assistance, education, research, loans and grants for cooperative
development and advisory services.

**ELIGIBILITY REQUIREMENTS:** Grants may be made to non-profit
organizations and institutions of higher learning for use in rural areas
(less than 50,000 in population and density of not more than 100 persons
per square mile).

**CONTACT:** Applications are made at the USDA Rural Development state
office in St. Paul (375 Jackson St., Suite 410, 651-602-7800).
Additional information about this program can be found at
[http:///www.rurdev.usda.gov/rbs/coops/rcdg/htm]().

![](media/image1.jpeg){width="2.0527777777777776in"
height="1.1402777777777777in"}

**PROGRAM DESCRIPTION:** Cooperative Services (CS) assists rural
residents in forming new cooperative businesses and improving the
operations of existing cooperatives. Assistance to agricultural
marketing and supply cooperatives is the primary focus of CS, however,
an expansion to serve other types of rural cooperatives is in process.

**TYPE OF ASSISTANCE:** Technical assistance is available for new and
existing cooperatives for such items as: formation of the organization,
initial feasibility study, creation and implementation of a business and
marketing plan and operational improvements. CS conducts cooperative
related research and promotes a public understanding of cooperatives
through education and information dissemination.

**ELIGIBILITY REQUIREMENTS:** At present, technical assistance is
provided to agricultural marketing, supply, aquaculture and craft
cooperatives. However, CS plans to expand the cooperative program to
include assistance to all types of rural cooperatives.