For More Information

Information on all USDA Rural Development 

programs is available online or from the office 

serving your area.

Other Support 

for Cooperatives 

USDA Rural Development helps rural residents 

form new cooperatives and improve the 

operations of existing ones through education, 

technical assistance, research, data collection, 

and analysis. We are the Nation’s major source 

for information about co-ops. We publish 

“Rural Cooperatives” magazine and maintain 

a library of more than 150 co-op publications, 

ranging from basic co-op primers to indepth 

reports on technical topics and ones that focus 

on co-op economic theory. Publications are 

available in hard copy and online at: 

www.rd.usda.gov/publications/publications-cooperatives.

Help for 

Cooperatives 

From USDA Rural Development

PA-2184

January 2016

www.rd.usda.gov

1 (800) 670-6553 (toll free)

USDA is an equal opportunity 

provider, employer, and lender.
Let us help your co-op serve your 

community better. We offer a 

number of financial opportunities to 

assist rural businesses, cooperatives, 

and agricultural producers. 

Except for Value Added Producer 

Grants, assistance under these 

programs is available to applicants 

in areas designated as “rural.” Under 

law, the definition of “rural area” is 

different for each program.

Rural Cooperative 

Development Grants

These grants help Cooperative Development 

Centers promote rural business ventures. 

Participating centers can assist in starting, 

expanding, or improving the operations of 

rural cooperatives and other mutually owned 

businesses. Using these grants, participants 

can conduct feasibility studies, develop 

business plans, provide training, and facilitate 

strategic planning. 

Grants are awarded competitively. Centers can 

be located in any area, but the individuals and 

businesses assisted must be in an eligible rural 

area. Participants must provide matching funds 

for 25 percent of the total project cost. 

Socially-Disadvantaged 

Groups Grants

We provide funds to cooperatives and 

Cooperative Development Centers enabling 

them to offer technical assistance to socially 

disadvantaged groups. 

Examples of technical assistance include 

feasibility studies, business plans, strategic 

planning, and leadership training.

Value Added 

Producer Grants

Get more revenue from your raw agricultural 

products by processing or marketing them. 

Funds can be used for planning activities or for 

working capital expenses related to producing 

and marketing a value-added agricultural product. 

This assistance is available to:

• Independent producers;

• Agricultural producer groups; 

• Farmer or rancher cooperatives; and 

• Majority-controlled producer-based business. 

Participants must obtain matching funds for half 

the total costs of their project. 

Business and Industry 

(B&I) Loan Guarantees 

This program provides financial backing for 

rural businesses. Commercial loan guarantees 

are available for up to 80 percent of the loan 

amount. Applicants work with private-sector 

lenders. USDA Rural Development provides a 

guarantee for the loan. 

Who may apply?

• For-profit businesses;

• Nonprofits and cooperatives;

• Federally Recognized Tribes;

• Public bodies; 

• Individuals.

How can we use the funds?

• Convert an existing business to an 

employee-owned worker cooperative;

• Convert, enlarge, repair, modernize, 

or develop a business;

• Purchase and develop land, easements, 

rights-of-way, buildings, or facilities;

• Purchase equipment, machinery, 

supplies, or inventory;

• Refinance when new jobs will be created 

and other conditions are met;

• Acquire businesses and industries when the 

loan will keep the business from closing and/

or save or create jobs.

The borrower’s headquarters may be based 

within a larger city as long as the project is 

located in an eligible rural area.