USDA RURAL DEVELOPMENT RURAL BUSINESSCOOPERAIVE SERVICE BUSINESS PROGRAMS

USDA, RURAL DEVELOPMENT RURAL BUSINESS-COOPERAIVE SERVICE BUSINESS PROGRAMS Rural Development NACS/NASP Zone Meeting February 27 -28, 2003 Spokane, Washington William F. Hagy III Deputy Administrator, Business Programs (202) 720 -7287

Business Programs Fiscal Year (FY) 2002 Program Results • • 1, 562 loan/grants - $959. 8 million 76, 300 jobs created/saved 8, 464 businesses impacted 791 preapplications/applications - $769 million pending at FY end.

Business Programs FY 2003 Budget Program • B&I Guaranteed • RBEG • RBOG • IRP • REDL • REDG Funding Level $900 million + $309 million carry over $47. 99 million $ 4 million $40 million $15 million $ 4 million

FY 2003 Budget (continuation) • Earmarks · EZ/EC/Reap, Mississippi Delta, and Native American · Passenger Transportation • Mississippi Delta Memorandum of Agreement • 1940 -L

FY 2004 President’s Budget Business Program • • • B&I Guaranteed IRP RBEG RBOG REDL REDG Funding Level $602 million $ 40 million $ 44 million $ 3 million $ 15 million $ 4 million

FY 2004 President’s Budget (continuation) • Pilot Asset Sale · Conducted jointly with FSA · $5 million proceeds anticipated each from Rural Development and FSA

Farm Bill Implementation Update • Definition of “Rural and Rural Area” published - B&I, RBEG, and RBOG • Interim final rule in clearance: · B&I Assistance in non-rural areas · Cooperative Stock Purchase Program · $40 million vs $25 million loan limitation for certain types of businesses · Simplified application for B&I

Farm Bill Implementation Update (continuation) • VADG · 291 recipients - $57 million - 43 States · 10 million for bioenergy (7 million - ethanol) · Final regulations published - late June to early July · FY 2003 funding - $40 million (mandatory)

Farm Bill Implementation Update (continuation) Energy Title Section 9003 - Biorefinery Development Grant • Purpose: Develop new and emerging technologies for use of biomass • Eligible Recipients: Individuals, corporations, farm cooperatives, associations, national laboratories, institutions of higher education, State/local energy agencies/offices, Indian Tribes, or consortiums compromised of any of/or the above.

Farm Bill Implementation Update (continuation) Energy Title Section 9003 - Biorefinery Development Grant • Cost sharing: Maximum of 30 percent • Budget outlook: Discretionary funding

Farm Bill Implementation Update (continuation) Energy Title - Section 9005 Energy Audit and Renewable Energy Development Program • Purpose: Assist farmers, ranchers and rural small businesses with energy audits and using renewable energy technologies • Eligible Recipients: State energy/agriculture offices, regional or State-based energy organizations, and Native American energy organizations, institutions of higher learning, rural electric cooperatives or utilities, non-profit organizations, and other entities determined by the Secretary of Agriculture.

Farm Bill Implementation Update (continuation) Energy Title - Section 9005 Energy Audit and Renewable Energy Development Program h. Cost-sharing: 25% Match h. Budget outlook: Discretionary funding

Farm Bill - Energy Title Section 9006 - Renewable Energy Systems and Energy Efficiency Improvements Program Establishes a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements.

General Provisions • Grant amount not to exceed 25 percent of activity funded. • Combined loan/grant not to exceed 50 percent of cost of activity funded.

Partnering for America’s Future USDA • Rural Development • Farm Services Agency • Natural Resource and Conservation Service • Forest Service Department of Energy Environmental Protection Agency

Funding Availability Fiscal Years 2003 -2007 $23 Million per year

Projected Timeline For Implementation - FY 2003 • Notice of Funding Availability Published - 03/31/03 • 60 Day Application Period • Announcement of Awards - 07/31/03 • Awardees Advised of Conditions for Fund Obligation - 08/29/03 • Awardees Agreement to Conditions and Fund Obligation - 09/30/03