USDA Rural Development

SOUTH DAKOTA 

2015 PROGRESS REPORT

USDA Rural Development 2015 Progress Report | 1 

This has been a year of historic accomplishment for the United States Department 

of Agriculture (USDA), particularly in the area of rural economic and community 

development. In 2015, USDA’s Rural Development (RD) employees across the 

nation have continued to work closely with partners to drive investment in rural 

small businesses and entrepreneurs; help rural families achieve the dream of 

homeownership; grow the biobased economy; support renewable energy and 

efficiency; make critical upgrades to electric, water and telecommunications 

infrastructure; and expand opportunity in rural communities. 

The Fiscal Year 2015 Rural Development Progress Report outlines our work on behalf 

of hundreds of thousands of projects for individuals, families, farmers and ranchers, 

rural entrepreneurs and small business owners, municipalities, developers, and utility 

providers in 2015. USDA is proud to lead the Administration’s effort to drive investment in rural people and places. 

This work truly makes a difference in the lives of the proud men and women who live, work and raise families in 

rural America.

Sincerely,

Thomas J. Vilsack

Secretary of Agriculture

USDA Rural Development transformed lives in small-town rural America in 2015, as 

we have done throughout our 80-year history.

Our employees work hard each day to support the needs of the 46 million rural 

Americans who provide the food, fiber, fuel and durable goods the rest of the nation, 

and the world, depend upon. In Fiscal Year (FY) 2015, Rural Development invested 

more than $29.7 billion nationwide in loans, loan guarantees, and grants for a diverse 

range of worthwhile projects in rural communities.

Each of these investments in rural communities is an investment in our country’s 

future. More importantly, however, each investment has a direct and lasting impact 

on the quality of life of the rural people living and working in the American heartland. 

USDA Rural Development is a lending agency that cares deeply about the rural people and communities we serve. I 

am proud of the difference we make in the lives of rural Americans, and delighted to share South Dakota’s successes 

with you. 

Sincerely,

Lisa Mensah

Under Secretary for Rural Development
2 | USDA Rural Development 2015 Progress Report

Message from the Acting State Director

“Our ability to respond to the needs of rural South Dakota communities is the result of 

cooperation, collaboration, and coordination. We look forward to future successes in 

the coming year.” 

 — Bruce Jones, Acting State Director

Welcome to South Dakota USDA Rural Development’s Fiscal Year 2015 Progress Report. As you review the 

contents, you will discover information on our programs, our investments, and read about some of the successes 

we have had. This report documents our efforts to improve the lives of residents of South Dakota’s rural 

communities. 

Our ability to respond to the needs of rural South Dakota communities is the result of cooperation, collaboration, 

and coordination. We have partners at the federal, state, and local levels sitting at the table, working through the 

challenges confronting rural South Dakota residents and participating in the solutions. The South Dakota USDA 

Rural Development staff are engaged with partners. 

USDA Rural Development is the only federal agency that can essentially build a community from the ground up. 

Through investments in infrastructure, homeownership, and job creation, USDA Rural Development helps rural 

Americans achieve the American Dream. Primarily, USDA Rural Development operates three distinct programs - 

Business Programs, Community/Utility Programs, and Housing Programs.

During this past Fiscal Year in South Dakota, USDA Rural Development delivered over $258 million of investment 

throughout South Dakota’s 66 counties. USDA Rural Development programs and services are provided to South 

Dakota through the State Office in Huron and seven Area Offices throughout the state.

I encourage you to think about how the programs represented on the following pages might be used to make a 

difference in your life, your business and your community in 2016.

Sincerely,

Bruce Jones

Acting State Director

for South Dakota USDA Rural Development
USDA Rural Development 2015 Progress Report | 3 

X

Fiscal Year Investments in South Dakota

Program 2009 - 2013 2014 2015 Total 

AMOUNT

Total 

AWARD

Amount Award Amount Award Amount Award

Business & Industry $77,680,788 38 $3,335,484 6 $1,239,000 2 $82,255,272 46

Intermediary 

Relending Program

$9,414,000 15 $750,000 1 $3,553,141 5 $13,717,141 21

Renewable Energy $8,384,158 200 $172,2390 13 $1,121,346 53 $9,677,743 266

Business Grants $4,747,433 56 $506,070 7 $255,995 4 $5,509,498 67

Rural Economic 

Development Loans 

& Grants

$7,841,000 19 $2,050,000 7 $2,335,000 7 $12,226,000 33

Value Added 

Producer Grants

$774,453 5 $274,362 3 $303,907 2 $1,352,722 10

Single Family 

Housing Direct

$62,023,829 588 $8,250,117 71 $11,132,596 90 $81,406,542 749

Single Family 

Housing Guaranteed

$766,583,935 6,448 $188,302,524 1,465 $179,091,825 1,355 $1,133,978,284 9,268

Single Family 

Housing Repairs

$1,715,677 340 $311,394 59 $263,137 57 $2,290,208 456

Single Family 

Housing Self-Help 

Grants

$1,791,110 7 $0 0 $993,317 4 $2,784,427 11

Multi-Family Direct $6,391,304 18 $0 0 $489,000 1 $6,880,304 19

Multi-Family 

Guaratneed

$0 0 $1,225,900 1 $0 0 $1,225,900 1

Farm Labor Housing $0 0 $0 0 $0 0 $0 0

Rental Assistance $66,593,812 776 $13,611,775 150 $11,236,284 180 $91,441,871 1,106

Community Facility 

Direct

$102,310,966 81 $6,036,500 7 $12,543,300 7 $120,890,766 95

Community Facility 

Guaranteed

$22,423,000 8 $0 0 $0 0 $22,423,000 8

Community Facility 

Grants

$6,715,832 88 $928,285 19 $987,400 16 $8,631,517 123

Water & Waste 

Disposal Direct

$98,912,000 101 $11,661,000 10 $13,238,000 8 $123,811,000 119

Water & Waste 

Guaranteed

$0 0 $0 0 $0 0 $0 0

Water & Waste 

Disposal Grants

$96,714,293 79 $5,446,277 10 $9,248,000 10 $111,408,570 99

Telecom $133,150,386 23 $379,262 2 $1,097,168 4 $134,626,816 29

Electric $495,696,000 38 $219,458,000 10 $7,741,000 2 $722,895,000 50

All Other Programs $5,731,720 35 $1,121,988 5 $1,130,901 185 $7,984,609 225

Total $1,975,595,696 8,963 $463,821,177 1,846 $258,000,317 1,992 $2,697,417,190 12,801

Rural Development Funding Activity - South Dakota
4 | USDA Rural Development 2015 Progress Report

Business & Industry Loan Guarantees

The B&I Guaranteed Loan program bolsters 

the existing private credit structure through the 

guaranteeing of loans for rural businesses, allowing 

private lenders to extend more credit than they would 

typically be able to. Under the program, USDA Rural 

Development provides guarantees on loans made by 

approved lenders that participate in the program.

Rural Business Development Grants

The RBDG program is a competitive grant program 

that provides targeted technical assistance, training 

and other services to help develop or expand small 

and emerging private businesses in rural areas. The 

businesses must have fewer than 50 employees 

and less than $1 million in gross revenues. Grants 

are awarded to qualified organizations to carry out 

enterprise- or opportunity-related projects to boost 

business development.

Intermediary Relending Program

The IRP program provides 1-percent, low-interest 

loans to local intermediaries that re-lend to businesses 

and for community development projects in rural 

communities.

Rural Microentrepreneur 

Assistance Program

The RMAP program awards loans and grants to 

Microenterprise Development Organizations to 

establish revolving funds for micro-loans to “microenterprises,” or very small rural businesses, and 

to provide technical assistance and training. The 

program supports start-up or expansion of very small 

rural business ventures.

Rural Economic Development 

Loans and Grants

The REDLG program finances economic development 

and job creation in rural areas. Under the program, 

USDA provides zero-interest loans and grants to local 

utilities to establish revolving loan funds to support 

local business development projects.

Rural Cooperative Development Grants 

The RCDG program is a competitive grant program 

to start or run centers for cooperative development. 

These centers improve economic conditions in rural 

areas by helping individuals and businesses start, 

expand or improve rural cooperatives and other 

mutually-owned businesses.

Socially-Disadvantaged Groups Grants

The SDGG program provides technical assistance to 

socially-disadvantaged groups through cooperatives 

and cooperative development centers.

Value Added Producer Grants

The VAPG program is a competitive grant program 

to help independent agricultural producers enter into 

activities that add value to their products through new 

processing and/or marketing opportunities.

Rural Energy for America Program Loan 

Guarantees and Grants

The REAP program provides loans and grants to 

agricultural producers and rural small businesses to 

purchase or install renewable energy systems or make 

energy efficiency improvements.

Rural Business and Cooperative Programs

In Fiscal Year 2015, USDA Rural Development invested $8.8 million in South Dakota rural 

businesses, supporting 73 projects. Business and Cooperative Programs serve South 

Dakota communities by creating new businesses, growing production, maintaining jobs, 

conducting feasibility studies, improving rural energy development, creating professional 

business plans, and increasing revenue for rural business ventures.
USDA Rural Development 2015 Progress Report | 5 

Rural Energy for America Program Audit 

and Development Grants

Grantees that receive assistance through this 

competitive REAP grant program help rural small 

businesses and agricultural producers by conducting 

and promoting energy audits, and providing renewable 

energy development assistance.

Biorefinery, Renewable Chemical, 

and Biobased Product Manufacturing 

Assistance Program

This program provides loan guarantees to develop, 

construct or retrofit commercial-scale biorefineries 

so that they can implement new and emerging 

technologies to support the development of advanced 

biofuels, renewable chemicals and biobased product 

manufacturing.

Repowering Assistance Program

This program provides funding for up to 50 percent 

of the total eligible project costs for biorefineries to 

install renewable biomass systems for heating and 

power at their facilities or to produce new energy from 

renewable biomass.

Advanced Biofuel Payment Program

This program supports increased production of 

advanced biofuels through payments to advanced 

biofuel producers for finished advanced biofuel 

products.

Rural Business ● “Made in the USA” 

Versatile Tile Manufacture Receives 

Support from USDA

Life Floor Manufacturing, Inc. is a leading 

designer of slip resistant tiles commonly used around 

pools and waterparks. In an effort to better serve 

their customers, they adopted a lean manufacturing 

focus and brought manufacturing home, moving 

operations from overseas to the United States of 

America. 

When Life Floor Manufacturing, Inc. was looking for 

a partner to come back home, the State of South 

Dakota stepped up to the plate and found that the 

City of Madison was a perfect fit. The manufacturing 

facility is housed in the Falcon Plastics’ building 

located in Madison. The facility started production on 

July 1, 2015. 

A funding package secured through a partnership 

between Heartland Rural Electric Fund, Lake Area 

Improvement Corporation and East River Electric’s 

Rural Electric Economic Development, Inc. (REED) 

Fund was established to assist the company. East 

River Electric’s REED Fund provided revolving loan 

funds received through USDA Rural Development’s 

Rural Economic Development Loan and Grant 

program and Lake Area Improvement Corporation 

provided loan funds received through USDA Rural 

Development’s Intermediary Relending Program. The 

equipment needed to get the manufacturing facility on 

its feet was made possible through funding provided 

by these entities all located within the state of South 

Dakota.

Life Floor Manufacturing, Inc., is one of the first 

American companies in decades to “on-shore” their 

foam-rubber manufacturing operation. This move is 

expected to shorten production and delivery time for 

domestic customers, improve quality control, and 

assist with costs and pricing. More importantly, 

each tile that’s “Made in the USA” creates jobs and 

opportunity here at home. 

Three children run across the slip resistant tiles manufactured 

through Life Floor Manufacturing, Inc. Photo courtesy of Life Floor 

Manufacturing, Inc.
6 | USDA Rural Development 2015 Progress Report

Single-Family Housing Direct Home Loans

This program helps very-low- and low-income 

individuals and families buy, build and improve homes 

in rural areas. Payment assistance, a type of subsidy, 

may be provided for very-low-income applicants — 

based on their adjusted household income — to help 

them afford the monthly mortgage loan payments.

Single-Family Housing Loan Guarantees

This program helps moderate-income individuals and 

families buy, build and improve homes in rural areas. 

USDA Rural Development provides guarantees on 

loans made by approved lenders that participate in the 

program.

Single-Family Housing 

Repair Loans and Grants

This program helps very-low-income rural individuals 

and families repair, improve or modernize their homes. 

Grants are provided to elderly very-low-income 

homeowners to remove health and safety hazards 

from their homes.

Mutual Self-Help Housing Technical 

Assistance Grants 

This program provides grants on a competitive basis 

to qualified organizations to help them carry out 

local self-help housing construction projects. Grant 

recipients supervise groups of very-low- and lowincome individuals and families as they construct 

their own homes in rural areas. The group members 

provide most of the construction labor on each 

other’s homes, with technical assistance from the 

organization overseeing the project.

Multi-Family Housing Direct Loans

This program provides competitive financing to 

construct or renovate affordable multi-family rental 

housing for low-income, elderly, or disabled individuals 

and families in eligible rural areas.

Rental Assistance

Rental Assistance payments may be made to owners 

of USDA Rural Development-financed rural rental 

housing or farm labor housing apartment complexes 

on behalf of low-income tenants who are unable to 

pay market-rate rent to help them meet their monthly 

rent payments.

Multi-Family Housing Loan Guarantees

The program provides financing to construct or 

renovate affordable multi-family rental housing for 

low- to moderate-income individuals and families in 

eligible rural areas. Under the program, USDA Rural 

Development provides guarantees on loans made by 

approved lenders that participate in the program.

Housing Preservation Grants

HPG grants are provided to sponsoring organizations 

to repair or rehabilitate housing occupied by very-lowand low-income people in rural areas.

USDA Rural Development improved rural housing in South Dakota with $203 million in 

loans and grants to build, repair, rehabilitate, and purchase homes that ultimately improve 

the quality of life in rural South Dakota. Rural Development provides funding for singlefamily homes, apartments for lower-income families or the elderly, and housing for farm 

laborers. In Fiscal Year 2015, the agency obligated 90 direct loans and 1,355 guaranteed 

loans to finance homes for rural South Dakota families.

Rural Housing Programs
USDA Rural Development 2015 Progress Report | 7 

Farm Labor Housing Loans and Grants

This program provides financing to develop affordable 

multi-family rental housing for year-round and migrant 

or seasonal domestic farm laborers and their families.

Rural Housing ● South Dakota Family 

Purchases Charming Home Thanks to 

USDA 

“Our overall feelings toward the home are inexplicable 

joy and relief. It feels like it was time and meant to be 

home,” said new homeowner Jennifer Hornedeagle.

The Hornedeagle family received a USDA 

Rural Development Section 502 Direct Single Family 

Housing packaged loan from Homes Are Possible, 

Inc. to purchase their home. 

In addition, this family was the first to benefit from 

a partnership between Coalition of Indian Housing 

and Native Development (CIHAND) and Dacotah 

Bank, together they deliver the Native American 

Homeownership Initiative (NAHI) program which is 

funded through the Federal Home Loan Bank (FHLB) 

of Des Moines. 

NAHI can provide an eligible household a forgivable 

grant for down payment and costs in conjunction with 

a 502 Direct loan from USDA Rural Development. 

Through the partnership, CIHAND funds the NAHI 

grant at the time of closing on the property. Once 

the repairs or rehab have been completed, FHLB and 

Dacotah Bank reimburse the funds to CIHAND. This 

funding helps provide a Native American family a 

homeownership opportunity that is affordable to them.

“Grow South Dakota is honored to be a part of the 

Hornedeagle’s story,” said Chief Operatinve Officer 

Lori Moen at Grow South Dakota. “The dedication 

and commitment they have made to make a lasting 

legacy for their family is undeniably homeownership 

at its best. The down payment/closing cost 

funding utilized for this family was awarded to 

Grow SD through a competitive application from 

the South Dakota Housing Opportunity Fund. The 

Hornedeagles’ story is a great message advocating

Anthony and Jennifer Hornedeagle, along with their three children, 

moved into their new home in December 2015. They are looking forward 

to creating memories that will last a lifetime. 

how the various links and connections are solutions to 

affordable housing.”

Hornedeagle shared that the location across from a 

school was a deciding factor. There is no doubt the 

family’s quality of life has improved. 

“This home has enabled us to put down roots and 

provided a place for our children to create lasting 

memories. The best words to describe it are charming 

and cozy,” added Hornedeagle. 
8 | USDA Rural Development 2015 Progress Report

Electric Infrastructure Loans

This program provides insured loans and loan 

guarantees to qualified utility providers to finance 

construction of electric generation, transmission 

and distribution facilities and system improvements 

in rural areas. Funds may be used for demand-side 

management, energy conservation programs, and ongrid and off-grid renewable energy systems.

Energy Efficiency and Conservation 

Loans

This program provides loans to USDA electric loan 

borrowers for energy audits and energy efficiency 

upgrades that enable the electric utilities to 

implement energy efficiency service improvements 

on behalf of their customers. Funds may be used for 

weatherization, HVAC improvements, high efficiency 

lighting and conversions to more efficient or renewable 

energy sources, such as consumer-scale solar power 

and ground-source heat pumps.

Telecommunications Infrastructure Loans

This program provides financing to construct, 

maintain, improve and expand telephone and 

broadband services in rural areas. 

Broadband Direct Loans and Loan 

Guarantees

This program provides funds to qualified providers to 

construct, improve or acquire facilities and equipment 

needed to implement broadband service in eligible 

rural areas.

Distance Learning and Telemedicine 

Grants

DLT grants help rural communities use the unique 

capabilities of telecommunications to connect to each 

other and overcome the effects of remoteness and low 

population density. For example, this program finances 

telecommunications equipment and systems that can 

link teachers and medical service providers in one area 

to students and patients in another remote location.

Community Connect Grants

Community Connect grants help deploy broadband 

service in rural communities where it is not yet 

economically viable for private sector providers to 

deliver broadband. Projects funded through the 

program include community centers that offer free 

public access to broadband for 2 years.

Water and Waste Disposal Program

This program provides affordable direct loans, loan 

guarantees and grants to build, repair or improve 

public water systems and waste collection systems in 

rural areas. 

Rural Utilities Programs

USDA Rural Development invested $31.3 million during Fiscal Year 2015 through 24 

infrastructure projects to provide reliable and clean drinking water, waste treatment 

systems, electric power, and telecommunications services in 18 rural communities in South 

Dakota.

Electric and telecommunications are important in every community.
USDA Rural Development 2015 Progress Report | 9 

Solid Waste Management Grants 

This program provides technical assistance and 

training grants to people who operate or maintain 

landfills to help reduce or eliminate pollution of water 

resources in rural areas.

Circuit Rider Program

This program provides grants for technical assistance 

and training to rural water systems experiencing 

difficulties with day-to-day operations, finances or 

management.

Water and Environmental Programs ● 

Enhancements to Meade County’s Rural 

Water Project

Last year, Bear Butte Valley Water, Inc., a nonprofit corporation, drilled a new deep well as the 

first step in developing the new rural water system 

with the assistance of USDA Rural Development. 

In 2015 a ground breaking celebration was held to 

commemorate awarding of the bids to complete the 

entire rural water system including installing 110 miles 

of pipeline, storage reservoirs and pumping stations. 

USDA Rural Development Water and Environmental 

loan and grant funds were leveraged with USDA 

Natural Resources Conservation Services EQIP funds 

and a grant from the State of South Dakota.

A trencher is shown installing a pipeline as part of the project ehnahncements for Bear Butte Valley Water, Inc. 

“This accomplishment is the result of many days, 

weeks and years of service and perseverance by a 

dedicated board of directors, along with the help of 

professional guidance received from our engineering 

partners and SD Rural Water,’ said Neal Rowett, 

Board President of Bear Butte Valley Water, Inc. 

and life long resident of the area. “In addition, the 

project was aided to a great extent by financial 

assistance received from USDA Rural Development 

and South Dakota Department of Environment and 

Natural Resources.” He continued, “We appreciate 

the support of the community for the confidence 

these people have shown in our efforts. Bear Butte 

Valley Water is a community owned, non-profit 

corporation that will serve its members for many 

future generations. It is with great pride that we will 

be providing drinking water of excellent quality with 

enough volume and pressure to fulfill the needs of our 

members.”

Steve Attema is a South Dakota Rural Water 

representative that has been assisting the local Board 

members in securing funds for the system. “It has 

been my pleasure to work with the Bear Butte Valley 

board of directors and system staff, DGR Engineering, 

USDA Rural Development, and South Dakota 

Department of Environment and Natural Resources, 

who all put in significant time, energy, commitment 

and ingenuity to take the idea of improving water 

quality and availability and making it a reality,” he said. 

“It is exiting to be a part of a project that will bring a 

great service to the people in the area.” 
10 | USDA Rural Development 2015 Progress Report

Community Facilities Loans and Grants

This program provides direct loans, loan guarantees 

and grants to qualified organizations to develop, build 

and equip essential community facilities in rural areas. 

Examples of essential facilities include public safety, 

fire and rescue and telecommunications buildings, 

schools, libraries, hospitals and health care clinics.

Rural Community Development 

Initiative Grants

RCDI grants are provided to help non-profit housing 

and community development organizations support 

housing, community facilities and community and 

economic development projects in rural areas.

Community Facilities ● Investing in the 

Basics of High Quality Education

“I want to ensure small South Dakotan communities 

have just as much opportunity to have successful 

business ventures, to build their community 

infrastructure, and to improve the quality of life in their 

hometowns as their urban counterparts,” said Bruce 

Jones, South Dakota USDA Rural Development Acting 

State Director. Yet, before anyone can come up with 

a business plan, design a new top-notch wastewater 

treatment facility, or plan a downtown revitalization 

project, one has to be taught the basics of how. The 

roots of all opportunity within any community are in 

access to high quality education. 

Being born and raised in a small town should never 

impede the quality of education you receive from 

your local public school, charter school or community 

college. Unfortunately, because small towns have 

small populations, it is often a difficult task for 

these communities to find the funds necessary to 

complete facility improvements or to add cutting edge 

technology and alternative learning curricula into their 

small town education budgets. 

Jones said, “I’m so proud to work for an organization 

that invests in small town and underserved community 

education opportunities, and here in South Dakota 

we have invested in educational facilities where 

‘underserved’ only begins to describe their situation.” 

In fact, the Pine Ridge Indian Reservation is known 

as one of the poorest areas in the Nation and was 

recently designated a Promise Zone by Agriculture 

Secretary Tom Vilsack. 

Red Cloud Indian School in Pine Ridge, South Dakota 

came to USDA Rural Development when they needed 

help updating the substandard furniture students, 

faculty and staff used every day. We successfully 

helped school leaders through the Economic Impact 

Initiative Grant Program application process, and Red 

Cloud Indian School was able to purchase new tables, 

desks and projectors. 

These purchases will exponentially increase the 

quality of education provided to students in Pine 

Ridge. No one can expect students to absorb 

knowledge when the desks they are sitting at are 

faulty; no one can expect teachers to deliver a quality 

education if they don’t have the tools necessary to 

teach. 

This is just the beginning of a series of investments in 

educational opportunities USDA Rural Development 

has committed to in South Dakota and our programs 

and successes can be replicated across the nation. 

Our USDA Rural Development website has more 

information on the programs available to benefit 

our communities. Together, we can create better 

educational opportunities across rural America.

Community Facilities Programs

During Fiscal Year 2015, USDA Rural Development invested $13.5 million in rural South 

Dakota through community facilities loans and grants. The 23 projects, including funding 

for schools and fire safety equipment, was used to benefit more than 15,901 rural 

South Dakota residents. Community Facilities programs help build, expand, rehabilitate, 

purchase, and support the development of police and emergency fire stations and 

equipment, museums, child care centers, hospitals, clinics, schools, and more.
USDA Rural Development 2015 Progress Report | 11 

Community Economic Development

Community Economic Development ●

Promise Zone ● New Housing 

Development on Pine Ridge Indian 

Reservation

Thunder Valley Community Development 

Corporation will soon have a new housing 

development. The “Regenerative Community,” will 

serve the Oglala Lakota people on the Pine Ridge 

Indian Reservation, thanks to $1.97 million from USDA 

Rural Development. 

USDA is providing a site loan to develop the streets 

and utilities for 23 lots, a self-help grant to develop 12 

new self-help homes, and water and waste disposal 

loan and grant funds for drinking water, sanitary sewer 

and storm drainage systems.

In June 2015, USDA officials joined Tribal leaders at 

the groundbreaking for the first phase of construction 

that is enabling families on the reservation to buy 

affordable, eco-friendly homes of their own. The 

families are expected to move in by next year. 

Thunder Valley Community Development Corporation 

plans to build housing, a small farm, an aquaponics 

greenhouse, a grocery store, powwow grounds, and 

a youth center on-site. When completed, the project 

will serve as a model for Native American and rural 

communities on the Pine Ridge reservation and 

across the country.

Other investment partners include the Sustainable 

Home Ownership Project, Enterprise Community 

Partners, and the Northwest Area and Bush 

Foundations. This project is an example of how 

targeted, place-based economic development through 

public-private partnerships can work to break the 

cycle of crumbling infrastructure often seen in many 

tribal communities. Rural Development is targeting 

assistance to the area through USDA’s Promise 

Zone and StrikeForce initiatives to combat persistent 

poverty in rural communities.

The Obama Administration designated the Pine Ridge Indian Reservation as a Promise 

Zone last April. The Promise Zone Initiative is part of the President’s plan to partner with 

local communities, businesses and Tribes to create jobs, increase economic security, 

expand educational opportunities, increase access to quality, affordable housing and 

improve public safety. 

Ground-breaking at Thunder Valley’s Regenerative community north of 

Sharps Corner, SD.

“Investing in and rebuilding hard-hit 

communities are important parts of 

this Administration’s plan to ensure 

that every child has a fair chance 

at success. Working in conjunction 

with our public and private partners, 

USDA is supporting much-needed 

infrastructure and economic 

development improvements to help 

create jobs, improve access to 

education opportunities and quality, 

affordable housing, and reduce crime 

throughout the Pine Ridge community.” 

- Agriculture Secretary Tom Vilsack -
12 | USDA Rural Development 2015 Progress Report

Rural Housing and Community Facilities Programs 

Objective Applicant Uses Population Loan/Grant Terms/Conditions

Single-Family Housing 

Direct Loans (including 

Self-Help Loans)

Safe, well-built, 

affordable homes 

for rural Americans.

Families and 

individuals. 

Buy, build, improve, 

repair or rehabilitate 

a rural home as the 

applicant’s permanent 

residence.

Rural areas with 

populations of up to 

35,000.

Direct loan. Up to 100% of market 

value or cost. Loan 

term of 33/38 years. 

Applicant may be eligible 

for payment assistance 

(subsidy) on the loan.

Single-Family Housing 

Loan Guarantees

To assist moderateincome applicants/

household in buying 

their homes by 

guaranteeing loans 

made by private 

lenders.

Families and 

individuals.

Purchase new or 

existing homes and 

refinance existing Rural 

Development guaranteed 

or direct loans.

Rural areas with 

populations of up to 

35,000.

Loan 

guarantee.

30-year, fixed. The interest 

rate is negotiated between 

lender and borrower. Loans 

up to 100% of market value 

plus the amount of the upfront guarantee fee being 

financed.

Single-Family Repair 

Loans and Grants

To help very lowincome applicants 

remove health and 

safety hazards or 

repair their homes.

Families and 

individuals who 

currently own their 

home.

Repair/replace roof, 

winterizing, purchase or 

repair heating system, 

structural repair, water/

sewage connect fees, etc.

Rural areas with 

populations of up to 

35,000.

Direct loan 

and grant.

Loans up to $20,000 up 

to 20 years at 1%. Grants 

available to very low-income 

applicants 62 years or older 

unable to pay 1% loan.

Self-Help Technical 

Assistance Housing 

Grants

Assist lower-income 

families in building 

their own homes.

Non-profits and 

public bodies.

Technical assistance 

to help small groups of 

families to build each 

other’s homes.

Rural areas with 

populations of up to 

35,000.

Grant. Grant agreement.

Rural Rental Housing 

Direct Loans 

Safe, well-built, 

affordable rental 

housing for 

very-low-income 

individuals and 

families.

Individuals, trusts, 

associations, limited 

partnerships, forprofit and non-profit 

entities, tribes, 

public bodies.

New construction or 

substantial rehabilitation 

of rental housing.

Rural areas with 

populations of up to 

35,000.

Direct loan. Up to 100% of total 

development cost (nonprofits); 97% (for-profits); 

95% (for-profits with 

Low-Income Housing Tax 

Credits). 30-year term with 

up to 50-year amortization. 

Rural Rental Housing 

Loan Guarantees

Provides loan 

guarantees on loans 

to build or preserve 

affordable housing for 

very-low to moderateincome tenants.

For profit and 

non-profit lenders.

Build or rehabilitate 

affordable rental 

housing.

Rural areas with 

populations of up to 

35,000.

Loan 

guarantee.

At least 25-year term with 

fixed interest rate. Loan 

guarantees up to 90% of 

the principal.

Housing Preservation 

Grants

Repair and rehabilitate 

housing owned or 

occupied by very 

low- and low-income 

rural families.

Public bodies 

and non-profit 

organizations.

Operation of a program 

which finances repair and 

rehabilitation activities for 

single-family and small 

rental properties.

Rural areas with 

populations of up 

to 35,000.

Grant. Grant agreement.

Farm Labor Housing 

Loans and Grants

Safe, well-built 

affordable rental 

housing for 

farmworkers.

Individuals, public 

and private nonprofit organizations.

New construction or 

substantial rehabilitation 

of rental housing.

Not applicable. Direct loan 

and grant.

Up to 102% of total 

development cost. Up 

to 33 years to repay at 

1% interest.

Community Facilities 

Loans and Grants

Improve, develop, 

or finance essential 

community 

facilities for rural 

communities.

Public bodies, 

non-profits, 

and Federally 

recognized Indian 

Tribes.

Construct, enlarge 

or otherwise improve 

essential community 

facilities, such as public 

safety, fire and rescue, 

telecommunications, 

schools, libraries, hospitals, 

other health care facilities, 

etc. This may include 

furnishings, fixtures and 

other required equipment.

City, town or 

unincorporated area 

of not more than 

20,000 in population. 

Facilities must 

primarily serve rural 

residents.

Direct 

loan, loan 

guarantee, 

or grant.

Up to 100% of market 

value. Term is for useful 

life of the facility or 

equipment, the State 

statute, or 40 years. 

Maximum grant 75% 

of project cost. Grant 

eligibility based on 

income, population, 

and need.

Rural Community 

Development Initiative

To facilitate housing, 

community facility 

and community 

and economic 

development 

projects.

Private non-profit or 

public organizations,

philanthropic 

foundations, 

low-income 

communities.

Technical assistance 

grants of $50,000 to 

$300,000 to develop the 

capacity and ability of 

the awardees to carry 

out needed projects.

City, town, or 

unincorporated area 

of not more than 

50,000 in population.

Grant. Matching funds 

required for grant.

Direct Loans and Grants: Apply to Rural Development. 

Loan Guarantees: Apply to participating intermediaries such as approved banks, mortgage companies, etc.
USDA Rural Development 2015 Progress Report | 13 

Objective Applicant Uses Population Loan/Grant Terms/Conditions

Business and Industry 

Loan Guarantees

Create jobs/

stimulate rural 

economies by 

providing financial 

backing for rural 

businesses.

Lenders/

Businesses. 

Real estate, buildings, 

equipment, supplies, 

working capital, and 

some debt refinancing.

All areas except cities 

over 50,000 and their 

contiguous urbanized 

areas.

Loan 

guarantee.

Lender and borrower 

negotiate terms. Up to 

30 years for real estate, 

15 years for machinery 

and equipment, and 7 

years for working capital.

Rural Business 

Development Grants

Assist the startup 

or expansion of 

small and emerging 

private businesses 

and/or non-profits in 

rural communities. 

Note: This program 

combines the 

former Rural 

Business Enterprise 

Grant and 

Rural Business 

Opportunity Grant 

programs and was 

created through the 

2014 Farm Bill.

Public bodies, 

government 

entities, nonprofit entities, 

and Federally 

recognized Indian 

Tribes.

Acquire or develop 

land, buildings, plants 

and equipment; build or 

improve access roads, 

parking areas, utility 

extensions, and water 

and waste disposal 

facilities; provide 

technical assistance; 

establish revolving loan 

funds; and to support 

rural distance learning 

programs that provide 

educational or job 

training.

All areas rural in 

character except cities 

over 50,000 and their 

contiguous urbanized 

areas.

Grant. Grants are awarded on a 

competitive basis.

Intermediary 

Relending Program 

Loans 

Establish revolving 

funds for business 

facilities and 

community 

development 

projects.

Public bodies, nonprofit corporations, 

Native American 

Tribes, and 

cooperatives.

Community development 

projects, establishment 

or expansion of 

businesses, creation or 

saving of rural jobs.

Rural areas and 

incorporated places 

with populations of 

less than 50,000.

Direct loan. The intermediary makes 

loans to businesses 

from its revolving loan 

fund on terms consistent 

with security offered. 

Intermediary pays 1% for 

30 years.

Rural 

Microentrepreneur 

Assistance Program

Establish revolving 

funds to target 

assistance to small 

rural enterprises.

Microenterprise 

Development 

Organizations 

(MDOs).

Loans, technical, and 

capacity-building 

assistance to businesses 

with 10 or fewer 

employees and sole 

proprietorships.

All areas except cities 

over 50,000 and their 

contiguous urbanized 

areas.

Loans, 

grants.

Rural microenterprises 

apply directly to the 

intermediary.

Rural Economic 

Development Loans 

and Grants

Finance economic 

development and 

job creation in rural 

areas.

Rural Utilities 

Service-financed 

electric and 

telephone utilities. 

Business startups or 

expansion projects that 

create rural jobs.

Rural areas with 

priority to places with 

populations of 2,500 

or less.

Direct loan 

or grant to 

establish 

revolving loan 

fund.

Intermediary makes 

loans to for-profit or nonprofit businesses and 

public bodies. Loans are 

0% for 10 years.

Rural Cooperative 

Development Grants

Establish/

operate centers 

for cooperative 

development.

Non-profits and 

institutions of 

higher education. 

Establish centers 

to provide technical 

assistance, training, 

applied research, 

and collection and 

interpretation of 

data, for the purpose 

of cooperative 

development.

All areas except cities 

over 50,000 and their 

contiguous urbanized 

areas. 

Grant. Minimum 25% fund 

match (5% for 1994 

Institutions). Grants 

awarded competitively.

Socially 

Disadvantaged Groups 

Grants (formerly 

called Small, Socially 

Disadvantaged 

Producer Grants 

Program)

Provides funds 

to eligible 

cooperatives or 

an association of 

cooperatives to 

provide technical 

assistance to 

small, socially 

disadvantaged 

producers in rural 

areas.

Cooperatives and 

associations of 

cooperatives whose 

membership and 

board of directors 

is comprised of at 

least 75% socially 

disadvantaged 

agricultural 

producers.

Technical assistance. All areas, except cities 

over 50,000 and their 

contiguous urbanized 

areas.

Grant. Grants are awarded 

on a competitive basis. 

There is no matching 

requirement.

Rural Business and Cooperative Programs
14 | USDA Rural Development 2015 Progress Report

Objective Applicant Uses Population Loan/Grant Terms/Conditions

Value-Added Producer 

Grants

Help independent 

agricultural 

producers enter into 

activities that add 

value to their crops.

Independent 

producers, farmer 

and rancher 

cooperatives, 

producer groups, 

majority-controlled 

producer-based 

business ventures.

Feasibility studies, 

business plans; working 

capital.

All areas. Grant. Grants are awarded on a 

competitive basis. Funds 

cannot be used to build 

facilities or purchase 

equipment. Funds must 

be matched on a dollarfor-dollar basis.

Rural Energy for 

America Program 

(REAP) Loan 

Guarantees and 

Grants

Provide assistance 

for energy efficiency 

improvements 

or purchase of 

a renewable 

energy system for 

operations.

Rural small 

businesses 

and agricultural 

producers.

Energy efficiency 

improvements, 

renewable energy 

systems, land acquisition 

and working capital.

Cities, towns, 

unincorporated 

areas with population 

less than 50,000. 

(Population limits 

do not apply to 

agricultural producers)

Loan 

guarantee 

and/or grant..

Grants up to 25% 

of project costs not 

to exceed $250,000 

for energy efficiency 

projects and $500,000 

for renewable energy. 

Loan guarantees up to 

75% of project cost not to 

exceed $25 million.

REAP Audit/

Development Grants

Provide grant 

to entity to pass 

through to a 

small business 

or agricultural 

producer for 75% 

of the cost of an 

energy audit or 

renewable energy 

development 

assistance.

State, tribal, or 

local government 

institutions of 

higher education; 

rural electric 

cooperatives; 

or public power 

entities.

$100,000 grant to 

entities, smaller ones 

to small business and 

agricultural producers 

for 75% of energy audit 

or renewable energy 

development assistance.

Cities, towns, 

unincorporated areas 

with population less 

than 50,000.

Grant. $100,000 to entities 

and up to 75% of the 

cost of energy audit 

for renewable energy 

development assistance.

Biorefinery, 

Renewable Chemical, 

and Biobased Product 

Manufacturing 

Assistance Program 

Loan Guarantees 

(formerly called 

Biorefinery Assistance 

Program)

Provide loan 

guarantees for the 

development and 

construction of 

commercial-scale 

biorefineries or to 

retrofit facilities 

using eligible 

technology for the 

development of 

advanced biofuels.

Individuals, Indian 

Tribes, State or 

local governments, 

corporations, farm 

cooperatives, 

associations 

of agricultural 

producers, national 

laboratories, higher 

learning institutions, 

rural electric coops, public power 

entities, consortiums 

of any of the 

entities.

Loan guarantees to 

develop and construct 

commercial-scale 

biorefineries or retrofit 

facilities to use eligible 

technology for the 

development of advanced 

biofuels.

No restrictions. Loan. 90% (maximum) 

guarantee on loans up 

to $125 million; 80% 

(maximum) guarantee 

on loans less than $150 

million; 70% (maximum) 

guarantee on loans of 

$150 million but less 

than $200 million; 60% 

(maximum) guarantee on 

loans of $200 million up 

to $250 million. 

Repowering 

Assistance Program

Provide payments 

to biorefineries to 

replace fossil fuels 

with biomass.

Biorefineries. Grant to biorefineries, 

including ethanol and 

biodiesel plants that use 

electricity generated 

from natural gas and coal 

and require this for the 

fermentation process.

No restrictions. Grant. As funds are available. 

Complete applications 

submitted to National 

Office for review.

Advanced Biofuel 

Payment Program

Provide payments 

to producers of 

advanced biofuels.

Eligible producers of 

advanced biofuels.

Grant to producers of 

advanced biofuels 

(non-cornmercial-based).

No restrictions. Grant. As funds are available. 

Complete applications 

submitted to National 

Office for review. Grant 

awards determined by 

National Office.

Direct Loans and Grants: Apply to Rural Development. 

Loan Guarantees: Apply to participating intermediaries such as eligible banks, etc. 

Revolving Funds (IRP, REDLG, RMAP): Intermediaries apply to Rural Development, others to the intermediaries.

Rural Business and Cooperative Programs (continued)
USDA Rural Development 2015 Progress Report | 15 

Objective Applicant Uses Population Loan/Grant Terms/Conditions

Water and Waste 

Disposal Loans and 

Grants

Provide infrastructure 

for rural areas.

Public entities, Indian Tribes 

and non-profit corporations.

Build, repair and improve 

public water systems 

and waste collection and 

treatment systems.

Rural areas, and towns 

with up to 10,000 

population.

Direct loan 

and grant.

Repayment period 

is a maximum of 40 

years. Grant funds 

may be available.

Water and Waste 

Disposal Loan 

Guarantees

Provide infrastructure 

for rural areas.

Public entities, Indian Tribes 

and non-profit corporations.

Construct, repair and 

improve water supply 

and distribution systems 

and waste collection and 

treatment systems. 

Rural areas, and towns 

with up to 10,000 

population.

Loan 

guarantee.

Eligible lenders 

obtain up to a 90% 

guarantee on loans 

they make and 

service.

Solid Waste 

Management Grants

Provide technical 

assistance and/or 

training to those who 

operate and maintain 

active landfills.

Public bodies, private nonprofit organizations, Indian 

Tribes, academic institutions.

Technical assistance and 

training to improve landfill 

conditions and protect 

against threats to nearby 

water resources.

Rural areas, and towns 

with up to 10,000 

population.

Grant. Applications 

accepted yearround. Complete 

applications 

submitted to 

National Office for 

review.

Technical 

Assistance/ 

Training/Circuit 

Rider

Provide technical 

assistance and 

training.

Public, private, and non-profit 

organizations.

Provide technical 

assistance and training to 

assist with management of 

water and waste projects.

Rural areas and towns 

with up to 10,000 

population.

Grant. As funds are 

available. Complete 

applications 

submitted to 

National Office for 

review.

Rural Broadband 

Direct Loans and 

Loan Guarantee

Deployment of 

broadband service 

to eligible rural 

communities. Note: 

The 2014 Farm Bill 

revises program 

provisions. New rules 

are expected to be 

published in FY 2015.

Entities seeking to provide 

broadband services in rural 

areas.

Finance the construction, 

improvement and 

acquisition of facilities 

and equipment to provide 

broadband service in 

eligible rural communities.

Refer to the new rules, 

when available, for 

population limits.

Refer to 

the new 

rules, when 

available, for 

loan details.

Refer to the 

new rules, when 

available, for 

loan terms and 

conditions.

Electric and 

Telecommunications 

Loans

Assist rural 

communities 

in obtaining 

affordable, highquality electric and 

telecommunications 

services.

Non-profit and cooperative 

associations, public bodies, 

and other utilities. 

Generation, transmission 

facilities and distribution 

of electric power, including 

alternative, renewable, 

conservation and energy 

efficiency programs. 

Enhance 911 emergency 

service, digital switching 

equipment, and fiber 

optic cable, along with 

traditional main system 

telecommunications 

service.

Electric: areas served 

by an existing rural 

electric borrower, 

or rural areas other 

than a city or town of 

more than 20,000. 

Telecommunications: 

areas cities with 

population under 

5,000.

Direct loan 

or loan 

guarantee.

Interest rates are 

established in 

accordance with 

7CFR 1714. 

Contact RUS at 

www.rd.usda.gov or 

1 (800) 670-6553.

Distance Learning 

and Telemedicine

Development 

and deployment 

of advanced 

telecommunication 

services throughout 

rural America to 

improve education and 

health care.

Incorporated entities, including 

municipalities, for-profit, 

and non-profit corporations 

that operate rural schools, 

libraries, health care clinics 

and other educational or 

health care facilities.

To provide enduser equipment and 

programming that delivers 

distance learning and 

telemedicine services into 

eligible areas.

Rural areas outside 

incorporated or 

unincorporated cities 

with populations up to 

20,000.

Grant. Awards range 

from $50,000 

to $500,000. A 

minimum of 15% in 

matching funds 

is required.

Community 

Connect Grants

Provide public access 

to broadband in 

otherwise un-served 

communities.

Public bodies, tribes, 

cooperatives, non-profits, 

limited dividend or mutual 

associations; corporations and 

other legally organized entities

To build broadband 

infrastructure and establish 

a community center that 

offers free public access to 

broadband for two years.

A single community 

outside incorporated or 

unincorporated cities 

with population over 

20,000 which does not 

have broadband.

Grant. Minimum: $50,000; 

Maximum: $1 

million. Amounts 

are published in 

Notices of Funding 

Availability and may 

vary.

Electric and Telecom Programs: Contact the Rural Utilities Service Administrator; 

Water Programs: Contact the Rural Development State Office. 

Rural Utilities Programs
16 | USDA Rural Development 2015 Progress Report

Land & Bldgs. Mach. & Equip. Working Capital Infrastructure Tech. Asst./Train.

Rural Housing and 

Community Facilities Programs

Single Family Housing Direct Loans (including Self-Help Loans)

Single Family Housing Loan Guarantees

Single Family Housing Repair Loans/Grants

Self-Help Housing Technical Assistance Grants

Rural Rental Housing Direct Loans

Rural Rental Housing Loan Guarantees

Housing Preservation Grants

Farm Labor Housing Loans/Grants

Community Facilities Direct Loans, Loan Guarantees, Grants*

Rural Community Development Initiative

Rural Business and Cooperative Programs

Business and Industry Loan Guarantees

Rural Business Development Grants

Intermediary Relending Program Loans

Rural Microentrepreneur Assistance Program

Rural Economic Development Loans and Grants

Rural Cooperative Development Grants

Socially Disadvantaged Groups Grants

Value-Added Producer Grant

Rural Energy for America Program Loan Guarantees/Grants

Biorefinery, Renewable Chemical, and Biobased Product 

Manufacturing Assistance Program Loan Guarantees

Repowering Assistance Program

Advanced Biofuel Payment Program

Rural Utilities Programs

Water and Waste Disposal Direct Loans, Loan Guars., Grants

Solid Waste Management Grants

Technical Asst./Training/Circuit Rider

Rural Broadband Direct Loans and Loan Guarantees

Electric and Telecommunications Direct Loans/

Loan Guarantees

Distance Learning and Telemedicine Loans/Grants

Community Connect Grants

* Initial operating expenses are eligible in conjunction with the financing of an eligible community facility project. However, grant funds may not be used 

to fund initial operating expenses.

Rural Development Program Purposes
January 2016 In accordance with Federal civil rights law and U.S. Department of 

Agriculture (USDA) civil rights regulations and policies, the USDA, its 

Agencies, offices, and employees, and institutions participating in or 

administering USDA programs are prohibited from discriminating based on 

race, color, national origin, religion, sex, gender identity (including gender 

expression), sexual orientation, disability, age, marital status, family/parental 

status, income derived from a public assistance program, political beliefs, 

or reprisal or retaliation for prior civil rights activity, in any program or 

activity conducted or funded by USDA (not all bases apply to all programs). 

Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication 

for program information (e.g., Braille, large print, audiotape, American Sign 

Language, etc.) should contact the responsible Agency or USDA’s TARGET 

Center at (202) 720-2600 (voice and TTY) or contact USDA through the 

Federal Relay Service at (800) 877-8339. Additionally, program information 

may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program 

Discrimination Complaint Form, AD-3027, found online at http://www.ascr.

usda.gov/complaint_filing_cust.html and at any USDA office or write a 

letter addressed to USDA and provide in the letter all of the information 

requested in the form. To request a copy of the complaint form, call 

(866) 632-9992. Submit your completed form or letter to USDA by:

(1) mail: U.S. Department of Agriculture, 

 Office of the Assistant Secretary for Civil Rights, 

 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; 

(2) fax: (202) 690-7442; or 

(3) email: program.intake@usda.gov (link sends e-mail).

USDA is an equal opportunity provider, employer and lender.

Contact us to learn more at:

USDA Rural Development

National Office

Mail Stop 0107

1400 Independence Avenue SW

Washington, DC 20250-0107

1 (800) 670-6553 (toll free)

www.rd.usda.gov
USDA Rural Development is committed to the future of rural communities.

USDA Rural Development South Dakota Map and Contacts

State Office

200 4th Street SW

Federal Bldg. Rm. 210

Huron, SD 57350-2477

Phone: 605-352-1100

Pierre Area Office

1717 N. Lincoln Ave. Suite 102

Pierre, SD 57501

Phone: 605-224-8870, Ext. 4 

Watertown Area Office 

1720 4th Street NE, Suite 2

Watertown, SD 57201

Phone: 605-886-8202, Ext. 4

Aberdeen Area Office

524 Enterprise Street S., Suite 100

Aberdeen, SD 57401

Phone: 605-226-3360, Ext. 4

Rapid City Area Office 

414 East Stumer Road

Rapid City, SD 57701

Phone: 605-342-0301, Ext. 4

Yankton Area Office 

2914 Broadway

Yankton, SD 57078

Phone: 605-665-2662, Ext. 4

Mitchell Area Office

1820 North Kimball, Suite C

Mitchell, SD 57301-1114

Phone: 605-996-1564, Ext. 4

Sioux Falls Area Office

2408 East Benson Road

Sioux Falls, SD 57104

Phone: 605-330-4515, Ext. 4

Follow us on Twitter:

@RD_SouthDakota

South Dakota

USDA RD Website:

www.rd.usda.gov/sd

* Huron Sate Office

*Rapid City

* Pierre

* Aberdeen

* Watertown

*Mitchell

*Sioux Falls

* Yankton