USDA Rural Development California Introduction Overview http www

USDA Rural Development California Introduction & Overview http: //www. rd. usda. gov/ca April 21, 2015 Karen Firestein Program Director Business & Cooperatives Programs USDA Rural Development California

Why are we here? RD’s vision is to maximize our program benefits to support a rural America that is a healthy, safe, and prosperous place to live and work.

How do we work? Rural Development uses over 40 loan and grant programs to create opportunities in housing, business, and infrastructure. We serve as a catalyst to improve conditions in rural America by offering technical assistance and increasing the flow of capital through leveraged partnerships. Successful rural economic development requires collaboration, cooperation and coordination with local leaders, public and private sector partners, and educational institutions.

What do we do? We are a federal agency that makes loans and grants to protect and preserve the livelihood of rural communities across the United States.

Rural Development Programs Rural Utilities Service Programs Rural Housing & Community Facilities Rural Business & Cooperative Service • Electric Program • Water & Environmental Programs • Telecommunications and Broadband Programs • • • Homeownership Loans Home Repair Loans & Grants Mutual Self-Help TA Grants Multi-Family Housing Loans Housing Preservation Grants Community Facilities Loans & Grants • • Business and Industry Guaranteed Loans Rural Business Development Grants Intermediary Relending Program Rural Energy for America Program Advanced Biofuel Payment Program Value Added Producer Grants Cooperative Development Assistance

Rural Development Funding Streams Guaranteed Loans Direct Loans Types of Funding Grants Direct Payments

WHAT IS OUR IMPACT ON RURAL AMERICA?

Annual Funding FY 2014 $973 Million FY 2013 FY 2012 $1. 2 Billion $998 Million

Total Funding in FY 2014: $973 Million Single Family Housing $725 Million Community Programs $52 Million Business & Cooperatives $70 Million Multi-Family Housing $126 Million

Programs Community Programs Single Family Housing Business & Cooperatives Multi-Family Housing

BUSINESS & COOPERATIVES

What is the mission of Business & Cooperatives? • To create and save rural jobs • To improve the economic and environmental climate of rural communities Business & Cooperatives

Beneficiaries of Our Programs • • • Individuals Corporations Cooperatives Partnerships Other public/private for-profit/non-profit legal entities • Federally recognized Indian tribes Business & Cooperatives

Business & Cooperatives Programs Business Programs • Business & Industry Loan Guarantees • Intermediary Relending Program (IRP) • Rural Microentrepreneur Assistance Program (RMAP) • Rural Business Development Grants (RBDG) Business & Cooperatives

Business & Cooperatives Programs Energy Programs • Rural Energy for America Program (REAP) • Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program • Advanced Biofuel Payment Program • Repowering Assistance Program Business & Cooperatives

Business & Cooperatives Programs • Value-Added Producer Grants (VAPG) • Small Socially-Disadvantaged Producer Grant (SSDPG) • Rural Cooperative Development Grants (RCDG) Business & Cooperatives

Funding Opportunities • Business & Industry Loan Guarantees (B&I) – Guarantees loans by eligible lenders to rural businesses – Maximum $10 -$25 million per borrower – One-time guarantee fee of 3% – Real estate: 30 year term – Chattel: 15 year term – Working capital: 7 year term – Guarantees of varying percentages available depending on loan size Business & Cooperatives

Funding Opportunities • Intermediary Relending Program (IRP) – Recipients are nonprofit, public agency, tribal or cooperative intermediaries – Ultimate beneficiaries are small businesses promoting rural community economic development – 1% interest rate – Maximum loan to ultimate beneficiary is $150, 000 or 75% of project cost Business & Cooperatives

Funding Opportunities • Rural Microentrepreneur Assistance Program (RMAP) – Loans and grants to microenterprise development organizations – Ultimate beneficiaries must have 10 or fewer full-time employees – Up to $50, 000 loans for ultimate recipients or 75% of project cost – Grants require 15% match Business & Cooperatives

Funding Opportunities • Rural Energy for America Program (REAP) Guaranteed Loans & Grants (9007) – Min $5, 000 / Max $25 million loan guarantee – Project Types: • Renewable Energy System (RES) – 25% of project cost/$500, 000 maximum grant • Energy Efficiency Improvement (EEI) – 25% of project cost/$250, 000 maximum grant Business & Cooperatives

Funding Opportunities • REAP Energy Audit (EA) and Renewable Energy Development Assistance (REDA) Grant (9007) – To assist agricultural producers and small businesses by conducting energy audits – Maximum grant $100, 000 Business & Cooperatives

Funding Opportunities • Rural Business Development Grant (RBDG) – Established under the 2014 Farm Bill – Designed to assist in the development of small and emerging private businesses and/or nonprofits in rural communities – Consolidation of Enterprise Grant (RBEG) and Opportunity Grant (RBOG) programs with no substantive changes Business & Cooperatives

Funding Opportunities • Rural Business Development Grant (RBDG) – May be used for technical assistance, job training and other economic development activities – Up to 10% of authorized funds may be used for “opportunity type grant” related activities – Includes set-asides for REAP Zones, Federally Recognized Tribes, and Rural Transportation Business & Cooperatives

Funding Opportunities • Rural Business Development Grant (RBDG) – More than $28 million available nationally – Eligible applicants include public bodies, nonprofits and Tribes – Must demonstrate a successful history of administering economic development and technical assistance programs Business & Cooperatives

Funding Opportunities • Rural Business Development Grant (RBDG) – Contact a local Rural Development office for more details and how to apply – Applications for Native American set-aside funds due by 4 PM on May 4, 2015 – All other applications due June 19, 2015 Business & Cooperatives

Funding Opportunities • Rural Business Development Grant (RBDG) – Established under the 2014 Farm Bill – Designed to assist in the development of small and emerging private businesses and/or nonprofits in rural communities – Consolidation of Enterprise Grant (RBEG) and Opportunity Grant (RBOG) programs with no substantive changes Business & Cooperatives

Eligible Areas Applicants must be located in towns with populations less than 50, 000 for most programs. Business & Cooperatives

Case Studies BUSINESS & INDUSTRY LOAN GUARANTEES

El Pajaro Community Development Corporation B&I Loan Guarantee Applicant –Purchase Real Estate Applicant – LH/Tenant Improvements Applicant – FF&E Other $2, 200, 000 $66, 000 $335, 000 $120, 000 $400, 000 Business & Cooperatives

Hotel Purchase Working Capital Fees & Costs B&I Loan $3, 900, 000 $350, 000 $106, 000 Business & Cooperatives

Case Studies RENEWABLE ENERGY FOR AMERICA PROGRAM (REAP)

Ground. Trac Solar Panels Agricultural Producer: Jelly’s Ferry Orchard in Red Bluff, CA • Finance Structure: – $43, 146 REAP Grant – $129, 438 Applicant – $172, 584 Total Project Costs Business & Cooperatives

Roof-Mounted Solar Panels Rural Small Business: Nolind’s Pioneer Auto Body & Shipping in Oroville, CA • Finance Structure – $20, 000 REAP grant – $150, 000 Bank Loan – $4, 768 CSI rebate – $89, 878 Costs Total Project Business & Cooperatives

Case Studies RURAL BUSINESS ENTERPRISE GRANTS (RBEG)

Southern California Focus on Cooperation RBEG Applicant $55, 000 $18, 000 Business & Cooperatives

California State University, Fresno Foundation RBEG Applicant $50, 000 $51, 000 Business & Cooperatives

West Hills Community College District RBEG Applicant $99, 500 $50, 000 *Hosting the “Apps for Ag” Hackathon at the Farm of the Future on April 17 -19, 2015

COMMUNITY PROGRAMS

What is the mission of Community Programs? • To strengthen infrastructure • To support basic needs of food and water • To address essential needs of education and health care • To meet necessary needs of access to cultural and recreational opportunities Community Programs

Beneficiaries of Our Program • Nonprofit Organizations that are broadly based and have significant community support • Indian Tribes • Public Bodies – including cities, counties and special districts • Mutual Water Companies Community Programs

Community Programs • Water and Sewer Infrastructure – Water and Waste Disposal Loan and Grant – Emergency Community Water Assistance Grants – Colonias – Tribal • Community Facilities Loans, Grants and Guarantees Community Programs

Community Programs • Rural Community Development Initiative • Telecommunications including: – Broadband – Distance Learning Telemedicine – Telephone Service • Electric – Rocky Chenelle (530) 379 -5032 rocky. chenelle@wdc. usda. gov Community Programs

Funding Opportunities • Water and Waste Disposal Loan and Grant Program – Low interest rates extend for up to 40 year loans • Currently 2. 25% - 3. 75% – Grants are up to 75% of project cost Community Programs

Funding Opportunities • Community Facilities Direct and Guaranteed Loans – 3 interest rate levels: poverty, intermediate, market – Guarantees up to 90% of any loss of interest or principal on the loan – Term may not exceed applicant’s authority, useful life of facility, or maximum of 40 years Community Programs

Funding Opportunities • Community Facilities Grants – Grants are up to 75% of project cost – Priority points for: • Small communities: population is ≤ 5, 000 • Low-income communities: MHI is below the higher of the poverty line or 60% of California’s nonmetropolitan MHI • Healthcare, public safety, or public and community services Community Programs

Funding Opportunities • Rural Broadband Access Loans & Guarantees – Map existing and proposed service coverage areas – Not accepting applications until new Farm Bill 2014 regulation is published Community Programs

Funding Opportunities • Distance Learning Telemedicine – Grants are for up to 100% of project cost – Notice of Funds Availability (NOFA) announced annually in Federal Register – Minimum 15% match – Awards range from $50, 000 to $500, 000 Community Programs

Funding Opportunities • Community Connect Grant – Improvement, construction, acquisition, or leasing of facilities used to deploy broadband service – Cost of providing necessary bandwidth for service free of charge to Critical Community Facilities for 2 years – Minimum: $100, 000 – Maximum: $3, 000 Community Programs

Eligible Areas Applicants must be in or outside a city, town or censusdesignated place with populations under 10, 000 for Water Programs and 20, 000 for Community Facilities. Community Programs

Case Studies WATER & ENVIRONMENTAL PROGRAMS

City of Woodlake WEP Loans WEP Grants CF Loans CF Grants $17, 479, 000 $5, 821, 000 $3, 177, 100 $154, 100 Community Programs

Case Studies PUBLIC SERVICES

Desert Alliance Community Empowerment (DACE) Portable Toilet and Showers Grant $100, 000 Community Programs

Questions? Visit Our New Website

Contact Us at the State Office Business & Cooperatives Single Family Housing Karen Firestein, Program Director Ron Tackett, Program Director (530) 792 -5825 (530) 792 -5816 Karen. firestein@ca. usda. gov Ron. tackett@ca. usda. gov Community Programs Multi-Family Housing Anita Lopez, Program Director Stephen Nnodim, Program Directo (530) 792 -5822 530 -792 -5830 Anita. lopez@ca. usda. gov Stephen. nnodim@ca. usda. gov

Contact Us! Karen Firestein BCP Program Director (530) 792 -5825 Karen. firestein@ca. usda. gov