--USDA~:::- :::-?:""'Z Rural

Development

Committed to the future of rural communities.

Business Programs

Through its Business Programs, USDA Rural

Development provides for business credit needs in

under-served rural areas, often in partnership with private-sector lenders.

Commercial Lending

Business and Industry Guaranteed Loans

This program provides financial backing for rural businesses. Commercial loan guarantees are available up

to 80 percent of the loan amount.

Assistance is available to virtually any legally organized entity, including:

• Individuals;

• Cooperatives;

• Corporations or partnerships;

• Trusts or other profit-oriented or nonprofit entities;

• Indian tribes or federally recognized tribal groups;

• Municipalities, counties, or other political subdivisions of a State.

The aggregate loan amount available to anyone borrower under this program is limited to $25 million at

any given time. An exception to the limit is for cooperative organizations when the facility is located in a rural

area and the facility provides value-added processing

of an agricultural commodity. The maximum amount in

such cases is $40 million.

B&l loans are normally available in rural areas, which

include all areas other than cities or towns of more

than 50,000 people and the contiguous and adjacent

urbanized area of such cities or towns. However, loans

of up to $25 million can be made for facilities located in

non-rural areas, provided the business is a cooperative organization engaged in value-added processing

and all members of the cooperative are located within

80 miles of the facility.

Rural BusinessCooperative Programs

Revolving Loan Funds

And Technical Assistance

Intermediary Relending Program Loans

USDA Rural Development lends funds to intermediaries, which, in turn, provide loans to finance business

facilities and community development projects.

Projects must be located in rural areas, which for the

purposes of this program excludes cities with a population of 25,000 or more. Eligible intermediaries include

public bodies, nonprofit corporations, Indian tribes, and

cooperatives.

Rural Business Enterprise Grant Program

This program offers grants to public bodies, nonprofit

corporations, and federally recognized Indian tribal

groups to finance and facilitate development of small

and emerging businesses located in rural areas.

Grant funds may be used for:

• Acquisition and development of land and the construction of buildings, plants, and equipment, access

streets and roads, parking areas and utility and service extensions;

• Revolving loan funds;

• Fees for professional services, technical assistance,

etc.

Rural Business Opportunity Grant Program

Under this program, funds are available for technical

assistance and planning activities to improve economic

conditions in rural areas.

Applicants must be located in rural areas (areas other

than cities or towns of more than 50,000 people and

the contiguous and adjacent urbanized areas of such

cities or towns).
Rural Economic Development Loan and Grant

Program

Loans and grants under this program are made to

Rural Development Utilities Programs-financed telephone and electric borrowers to promote rural economic development and/or job creation projects in nonurban areas. Eligible purposes include, but are not limited to, project feasibility studies, startup costs, incubator projects, and other reasonable expenses. The maximum loan and grant to any eligible recipient is established on an annual basis.

Rural Business Investment Program

The Rural Business Investment Program (RBIP) promotes rural economic development through venture

capital investment by for-profit Rural Business

Investment Companies (RBICs).

USDA licenses newly formed for-profit entities as

RBICs and provides financial assistance to fund their

rural area investment activities. Additionally, USDA

awards Operational Assistance grants to each RBIC

for providing technical assistance to smaller enterprises.

As required in the authorizing statute, USDA has delegated to the Small Business Administration (SBA)

many of the day-to-day responsibilities for the RBIP,

including receipt of applications and most of the selection process for licensing as a RBIC. More information

about all aspects of the RBIP is available in the regulations authorizing the program, at 7 CFR part 4290.

Renewable Energy and Energy

Efficiency Improvement Grants

This program provides grants, loans, and loan guarantees to eligible farmers, ranchers, and rural small businesses to assist in developing renewable energy systems and make energy efficiency improvements.

Projects provided assistance must be located in a rural

area (any area other than cities or towns of greater

than 50,000 population and the immediate and adjacent urbanized areas of the cities or towns).

Eligible small businesses include sole proprietorships,

partnerships, corporations, and cooperatives organized

in accordance with 501 c(12) of the Internal Revenue

Code. In addition, the applicant must meet the Small

Business Administration's Small Business size standards.

For-More

Information

Detailed information and applications for financial

assistance are available through State and local offices

of USDA Rural Development. Some of the authorized

programs described above require the implementation

of regulations before they are available for funding projects. Consult your USDA Rural Development State

Office for information on fund availability.

For more information on USDA Rural Development

Business programs, you may also call the Rural

Development National Office at (202) 720-0813, or

connect to the Rural Development website:

http://www.rurdev.usda.gov.

PA 1589

Revised March 2005

The U.S. Department ofAgriculture (USDA) prohibits

discrimination in all its programs and activities on the

basis of race, color, national origin, sex, religion, age,

disability, political beliefs, sexual orientation, and marital

or family status. (Not all prohibited bases apply to all

programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact

USDA's TARGET Center at (202) 720-2600 (voice and

TDD).

To file a complaint of discrimination write USDA,

Director, Office of Civil Rights, Room 326-W, Whitten

Building, 14th and Independence Avenue, SW,

Washington, DC 20250-9410 or call (202) 720-5964

(voice or TDD). USDA is an equal opportunity provider

and employer.