# Presentation: 657295

## National Association of Regional CouncilsWashington Policy ConferenceMarch 18, 2003

**William F. Hagy III**
**Deputy Administrator, Business Programs**
**(202) 720-7287**

**USDA, RURAL DEVELOPMENT**
**RURAL BUSINESS-COOPERAIVE SERVICE**
**BUSINESS PROGRAMS**

## Business Programs 

- Commercial Lending
- Revolving Loan Funds and Technical Assistance

## Revolving Loan Funds and Technical Assistance Programs

- IRP
- RBEG
- REDLGP
- RBOG

## Commercial Lending Programs

- B&I Guaranteed

## Business and Industry Guaranteed Loan Program

- Definition of Rural Area
- Cooperative Stock Purchase Program
- Loans to Cooperatives
- Simplified Application

- USDA

## Definition of A Rural Area 

- Any area other than an incorporated city or town with greater than 50,000 population and the urbanized area contiguous and adjacent to such city or town.

- USDA

## Cooperative Stock Purchase Program 

- Existing and start-up cooperatives eligible.
- Processing contracts for 5 years.
- Financial information acceptable to lenders.

- USDA

## Loans to Cooperatives

**Non-Rural Areas:**
- Value-added processing for producers located within 80 miles of the facility.
- Primary benefits will provide employment for rural area residents.

- USDA

## Loans to Cooperatives

**Non-Rural Areas:**
- 10% Limitation of appropriation.
- $25 Million loan limitation.

- USDA

## Loans to Cooperatives

**Rural Areas:**
- Cooperative’s headquarters in urban area as long as the facility is located in a rural area.
- $40 Million loan limitation, provided value-added processing facility.

- USDA

## Business and Industry Guaranteed Loan Program

**Simplified Application:**
- Loans $400,000 or less.
- Consultation with commercial and cooperative lenders.
- Manual or electronic availability.
- Minimizes documentation.
- Minimal costs for completing/processing.
- Capability to complete loan process expeditiously.

- USDA

## Value-Added Agricultural Product 

- Value-Added Agricultural Product
- Market Development Grants

- Purpose: *To assist with marketing of value-added products*
- Eligible Recipients:  *Independent producer, agriculture produce group, farmer or rancher cooperative, or majority controlled producer-based business venture.*
- Funding Level: *$40 million mandatory funding in FY03*

## Expanding 

- Expanding
- Rural Renewable
- Energy Systems

***USDA Rural Development***

## Farm Bill-Energy Title Section 9003 - 

- Farm Bill-Energy Title Section 9003 -
- Biorefinery Development Grants

- Purpose: *Develop new and emerging technologies for the use of biomass*
- Eligible recipients:  *Individuals, corporations, farm cooperatives, associations, national laboratories, institutions of higher education, State/local energy agencies/offices, Indian Tribes, or consortiums compromised of any of/or the above.*

## Farm Bill-Energy Title Section 9003 - 

- Farm Bill-Energy Title Section 9003 -
- Biorefinery Development Grants
- (continuation)

- Cost-sharing: *70% of costs*
- Budget outlook:  *Discretionary funding*

## Farm Bill - Energy Title 

**Farm Bill - Energy Title **
**Section 9005 - Energy Audit and **
**Renewable Energy Development Program**

- Purpose:  *Assist farmers, ranchers and rural small businesses with energy audits and using renewable energy technologies*
- Eligible Recipients:  *State energy/ agriculture offices, regional or State-based energy organizations, and Native American energy organizations, institutions of higher learning, rural electric cooperatives or utilities, non-profit organizations, and other entities determined by the Secretary of Agriculture. *

## Farm Bill - Energy Title 

**Farm Bill - Energy Title **
**Section 9005 - Energy Audit and **
**Renewable Energy Development Program**
**(continuation)**

- Cost Sharing: *25% match*
- Budget Outlook: *Discretionary funding*

## Farm Bill - Energy Title 

**Farm Bill - Energy Title **
**Section 9006 - Renewable Energy Systems **
**and Energy Efficiency Improvements Program**

- Establishes a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements.

## 	Combined loan/grant not to exceed 	

***General Provisions***

***	******Combined loan/grant not to exceed ******	***
***         ******50 percent of cost of activity funded.***

***	******Grant amount not to exceed 25***
***         ******percent of activity funded.***

## Partnering for America’s Future. 

***Partnering for America’s Future. ***
***     ******USDA -***
***Rural Development***
***Farm Services Agency***
***Natural Resource and Conservation    Service***
***Forest Service***
***Department of Energy***
***Environmental Protection Agency***

## Fiscal Years 2003-2007

***Funding Availability***

***Fiscal ******Years****** 2003-2007***

***$23 Million per year****** ***

## Projected Timeline For Implementation - FY 2003

***Projected Timeline For Implementation - FY 2003***

*** ******Awardees Agreement to Conditions and ***
***      ******Fund Obligation - 09/30/03***

*** ******Notice of Funding Availability ***
***       ******Published - 03/31/03***

*** ******60 Day Application Period***

*** ******Announcement of Awards - 07/31/03***

*** ******Awardees Advised of Conditions for ***
***       ******Fund Obligation - 08/29/03***

## Business Programs Funding 

- Business Programs Funding

**B&I Guaranteed**

**$1,203,370,810**

**IRP $39,860,000**

**MS Delta**

**$1,987,000**

**RBEG**

**$46,684,565**

**RBOG**

**$3,974,000**

**REDL**

**$14,869,939**

**REDG**

**$4,000,000**

**Energy**

**$23,000,000**

- B&I

- IRP

- Energy

- RBEG

- REDL

- RBOG

- MS Delta

## QUESTIONS 

## THE END