USDA RURAL DEVELOPMENT. Committed to the future of rural communities

Size: px

Start display at page:

Download "USDA RURAL DEVELOPMENT. Committed to the future of rural communities"

Phebe Lester
5 years ago
Views:

1 USDA RURAL DEVELOPMENT Committed to the future of rural communities

2 We have a mission We are committed to helping improve the economy and quality of life in rural America.

3 Florida/VI Office Jurisdiction

4 COMMUNITY FACILITIES PROGRAMS

5 Community Examples of Funding Projects: Facilities Building Rural Communities One Block at a Time qcommunity-based non-profit corporations q Federally-recognized tribes q Public Bodies Term/rate: q 40-year 3.875% Health Care Building Rural Communities q q q q q q q Hospitals, medical/dental clinics, nursing homes Town halls & courthouses Child care & community centers Fire departments, police stations, vehicles & equipment Libraries or private schools Telemedicine or distance learning equipment Community gardens &kitchens, food pantries, food banks, food hubs or greenhouses Education Public Service/Safety Support Communities USDA is an equal opportunity provider, employer and lender.

6 PROGRAM OBJECTIVE: FINANCE THE DEVELOPMENT & IMPROVEMENT OF ESSENTIAL PUBLIC FACILTIES THAT SERVE RURAL AREAS & ARE FOR PUBLIC USE. ANY FACILITY NEEDED FOR THE ORDERLY DEVELOPMENT OF A RURAL COMMUNITY. MEDICAL CLINICS, FIRE STATIONS, FIRE TRUCKS, ASSISTED LIVING FACILITIES, ROADS, BRIDGES, CHARTER SCHOOLS, ETC.

7 Community Facilities Programs DIRECT LOANS GUARANTEED LOANS GRANTS

8 Eligible Applicants Public Bodies - City, Town, County, District, etc. Non-Profit Corporations Federally Recognized Indian Tribes

9 Non-Profit Eligibility Broadly based board representing community served Association with or controlled by a local public body Substantial public funding through taxes or other local government sources

10 FACILITY MUST BE LOCATED IN & PRIMARILY SERVE A RURAL AREA DEFINED AS: Incorporated communities and Census Designated Places (CDP s) with a Population of 20,000 or less per the 2010 Census All Other unincorporated communities and areas

11 FUNDS MAY BE USED FOR: Most expenses relating to the development or improvement of an eligible facility. Land purchase, construction costs, architectural fees, construction interest, equipment purchase, etc.

12 Loan Rates & Terms Direct Loans Up to 40 year repayment term Interest rate 3.875% Fixed term Guaranteed Loans- Negotiated between lender & borrower Interest can be fixed or variable

13 Feasibility & Loan Security Loans must be adequately secured & based on satisfactory sources of repayment Non-Profits - Real Estate, Equipment, Revenues, etc. Public Bodies - Usually Revenue or G.O. Bonds A very important consideration is...

14 SIGNIFICANT COMMUNITY SUPPORT

15 Community Facility Direct Loan Direct loan to develop essential community facilities Wetumpka Volunteer Fire Department Substation

16 Community Facility Loan/Grant Loan/grant combination to develop essential community facilities Robertsville-St. Johns Volunteer Fire Department Mt. Pleasant Volunteer Fire Department

17 Crossroads Academy Charter School

18 Community Facility Loan Guarantee Provide guarantees to banks and other lenders to make loans to nonprofit or public bodies. Hope Charter School $1,400,000

Telecommunications facilities for long-distance medical

19 Loans, grants, and technical assistance to develop: Distance Learning & Telemedicine Loans/Grant Telecommunications facilities for long-distance medical treatment. Internet hookups and computers for rural schools and libraries.

20 Water and Waste Disposal Loan and Grant Program Primary Utility Infrastructure funding Program of Rural Development (Rural Utilities Service) Program Goal: Assistance for the development and operation of safe and affordable rural water supply, sewage disposal and solid waste facilities.

21 Eligibility for Water and Waste Disposal Loans and Grants Facility must serve a rural area that meets one of the following criteria: Unincorporated Community or area Incorporated City or Town with populations of 10,000 or Less per the 2010 Census

22 Eligible Applicants Units of Local Government-City, Town, County, Special Districts, etc. Community Based Non-Profits Federally Recognized Indian Tribes

23 Water and Waste Disposal Loans and Grants Eligible Types of projects: Water System Development & Improvement- New system, Upgrade, Expand, etc. Wastewater System Development & Improvement-New system, Upgrade, Collection, Treatment, Etc. Solid Waste and Storm Drainage

24 Water and Waste Disposal Loan and Grant Program Eligible Loan and Grant Fund Uses: Construction Engineering and Inspection Services Legal Fees Land and rights Construction Interest (Loan)

25 Water and Waste Water Loan City of Chattahoochee Sewer System

26 Water and Waste Disposal Guaranteed Loans: Loans are made by a lender and guaranteed against loss by the Government: Eligibility is the same as direct loans Use of loan funds is the same as direct loans, however, loans may also be made to refinance outstanding RD Water and Waste direct loans. Rates and terms negotiated between applicant and lender One time 1% guarantee fee.

27 Grant Funding The community served by system to be developed or improved has a median household income less than $52,495 per American Community Survey. Grant must be necessary to assist in maintaining system user charges at reasonable levels. Grant funding is determined by underwriting process.

28 Direct Loan Interest Rates: Interest Rates Effective Through June 30, 2018: Poverty Rate 2.375% When MHI of the area served is below $41,996 and the project is necessary to alleviate a health and/or sanitation problem. Intermediate Rate 3.125% When the MHI of the area served is less than $52,495 problems. Market Rate.3.875%

29 SEARCH Grants Funding for project pre-development costs such as engineering report and environmental report. Up to $30,000 with no matching requirement. Communities with median household incomes below $41,996. Applicant must show it lacks the financial resources to pay the costs.

30 Emergency Community Water Assistance Grants ECWAG Grants up to $500,000 to alleviate a significant decline in quantity or quality of water that occurred within two years of filing an application. Grants up to $150,000 for repairs, partial replacement, or significant maintenance on an established system to remedy an acute shortage or significant decline in the quality/quantity of potable water.

31 GOOD THINGS TO KNOW No application processing fees or administrative charges No prepayment fees or penalties on RD loans Use RD funds to joint finance with other funding sources; CDBG, EDA, State Appropriations, ETC. Prospects for funding are good!

32 MORE GOOD THINGS TO KNOW Applications may be submitted at any time. Costs incurred prior to the date of funding approval are eligible as long as they are otherwise eligible and related to the project. Assistance in preparing the application is available from RD staff. Florida has 6 RD Area Offices located around the state.

Rural Business Development Grant Grants to support the development of small and emerging private business enterprises in rural areas (less than

33 Rural Business Development Grant Grants to support the development of small and emerging private business enterprises in rural areas (less than 50,000 population). Employ 50 or fewer employees; and Less than $1 million in projected gross revenue (RBDG) Parking and Stormwater Improvements - Quincy

34 Rural Business Development Grant Applicant Eligibility (RBDG) Public Bodies Private Non-Profit Corporations

35 Rural Business Development Grant (RBDG) Examples: Downtown parking to support local small business Business Incubators Acquisition or development of land, easements or rights of way; construction, renovation of buildings Equipment purchase (City is applicant, then leases equipment to local small business- such as ultrasound equip, bone densitometer, etc.)

36 Rural Development Committed to the future of rural communities

USDA, RURAL DEVELOPMENT FUNDING PROGRAMS

USDA, RURAL DEVELOPMENT FUNDING PROGRAMS COMMUNITY FACILITIES LOAN PROGRAM U. S. Department of Agriculture Rural Development Other Agencies: FSA, NRCS, etc. Housing Programs Community Programs Business