RURAL DEVELOPMENT 1 2 USDA Rural Development is

RURAL DEVELOPMENT 1

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USDA Rural Development is committed to helping improve the economy and quality of life in rural America.

We accomplish this by: • Investing financial resources and providing technical assistance to businesses located in rural communities. • Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity. • Increasing access to capital in rural America

USDA RURAL DEVELOPMENT Rural Housing Programs Business & Cooperatives Programs Community Programs 5

Rural Development’s Mission To assist rural communities in creating prosperity so they are self-sustaining and economically successful through investments. Community Programs (Water and Environmental Prog. & Community Facilities) Helps rural utilities expand keep their infrastructure and technology up to date, and establish new and vital services such as distance learning and telemedicine. Rural Business—Cooperative Service Provides leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace. Rural Housing Service Helps rural communities and individuals by providing loans and grants for housing and community facilities.

Rural Development Puerto Rico • ALL PROGRAMS must comply with: Rural Area Definition ALL THREE MUNICIPALITIES INVOLVED IN THE PROMISE ZONE ARE ELIGIBLE FOR THE MAJORITY OF OUR PROGRAMS 7

Rural Business-Cooperative Service Programs Business and Industry Guaranteed Loans Rural Energy for America Program Rural Business and Development Grants Intermediary Relending Program Rural Microentrepreneur Assistance Program • Value Added Producer Grants • • •

Business & Industry Guaranteed Loan Program

Eligible Loan Purpose q. Start-up costs and working capital q. Acquisitions q. Construction q. Expansion q. Repair q. Modernization q. Purchase of equipment, machinery and/or supplies q. Processing and marketing q. Refinancing under certain conditions q. Energy - Purchase and installation of renewable energy systems or improvements in energy efficiency

Lender Benefits ØFederal Guarantee for lenders on their Rural Business Loans □ Provide lenders with another tool to expand their loan portfolio in rural areas □ Allows lenders to make loans above their legal lending limits □ Enables lenders to increase earnings through participation in the secondary market □ Minimize lender’s loss risk 11

Benefits for Borrower q. Stronger loan application q. Lower interest rates q. Longer repayment terms q. Assist businesses that may not qualify for conventional financing 12

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Rural Energy for America Program (REAP) Promotes energy efficiency and development of renewable energy for agricultural producers and rural small businesses through: • Grants for energy audits and renewable energy development assistance • Guaranteed loans and grants for energy efficiency improvements and renewable energy systems

REAP - Eligible Applicants Agricultural Producer Rural Small Business • Individual or entity that receives 51 percent or more of their gross income from agricultural production – crops, livestock, • aquaculture, forestry operations, nurseries, dairies For-profit small business - as defined by the Small Business Administration (SBA) • Rural area or non-metro community of < 50, 000

Eligible Projects Energy Efficiency Renewable Energy Lighting Solar Heating Wind Cooling Small Hydroelectric Ventilation Anaerobic Digesters Fans Biomass Automated Controls Geothermal Insulation Wave/Ocean Power The technology must be commercially available. Research and development projects do not qualify.

RURAL BUSINESS DEVELOPMENT GRANTS • The purpose of the RBDG program is to support the development of small and emerging business enterprises in rural areas, creating or saving jobs. • Grant funds do not go directly to the business. • 2 Components (Business Enterprise and Business Opportunity)

ELIGIBLE ENTITIES • RBDG grants may be made to public bodies and nonprofit corporations serving rural areas.

TYPES OF ELIGIBLE PROJECTS Business Opportunity Projects • • • Pay for Feasibility and Business Plan Studies; Train and provide technical assistance to existing or prospective rural entrepreneurs ; Conduct local community or multi-county economic development planning; Establish centers for training, technology and trade that will provide training to rural businesses in the utilization of interactive communications technologies to develop international trade opportunities and markets; or Pay reasonable fees and charges for professional services necessary to conduct the technical assistance, training or planning functions. Business Enterprise Projects • Acquisition and development of land • Construction, conversion, enlargement, repairs or modernization of buildings, plants, machinery, equipment facilities. • Pay for reasonable fees and charges for professional services necessary for the planning and development of the project; • Establish a revolving loan fund to provide financial assistance to third parties through a loan.

Community Facilities Programs provide loans, grants, and loan guarantees for projects to develop essential community facilities for public use in rural areas. This may include hospitals, fire protection, public safety, libraries, schools, and day care centers, as well as many other community-based initiatives. Colegio Hector Urdaneta 20

Water and Environmental Programs Utilities Assistance q. Direct Loans and Grants q. Solid Waste Management Program Community Facilities q. Direct and Loan and Grants q. Distance Learning and Telemedicine 21

Community Facilities Who is eligible? q. Public entities q. Non-Profit Organizations Eligible activities: ü ü New Construction/Improvements Purchase of M/E Project Fees (Design, Legal, etc. ) Operation and Management Costs Eligible Projects: q Schools q Libraries q Community Centers q Theaters q Museums 22

Community Facilities Projects Naguabo Reservoir / PRASA Provide essential community facilities for rural communities Water Treatment Plant , Roosevelt Roads

Rural Development Puerto Rico Field Offices State Office State Director Area Office II Utuado Mayaguez Juana Diaz Sub-Area Office Morovis Sub. Area Office Caguas Sub. Area Office Camuy Sub Area-Office 24

QUESTIONS? For more details go to the internet http: //www. rd. usda. gov/pr Agency Contact Phone 787 -766 -5095 Luis Garcia 787 -766 -5481 luis. garcia@pr. usda. gov 25