Rural Economic Development Loans and Grants (10.854)
Program
10.854 Rural Economic Development Loans and Grants
Federal Agency
RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE
Authorization
Rural Electrification Act of 1936, as amended, Title III, 7 U.S.C. 930-940c.
Program Number
10.854
Last Known Status
Active
Objectives
To promote rural economic development and job creation projects, including funding for project feasibility studies, start-up costs, incubator projects, and other reasonable expenses for the purpose of fostering rural development.
Types of Assistance
Direct Loans; Project Grants.
Uses and Use Restrictions
Projects which promote rural economic development and job creation. For fiscal year 2001, maximum amount of grant is $200,000; maximum amount of loan is $450,000. Maximum term of loan is ten years at zero interest rate.
Eligibility Requirements
Applicant Eligibility
Electric and telephone utilities that have current loans with the Rural Utilities Service (RUS) or Rural Telephone Bank loans or guarantees outstanding and are not delinquent on any Federal debt or in bankruptcy proceedings.
Beneficiary Eligibility
Rural/General Public.
Credentials/Documentation
This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication Coordination
Application Form: OMB Standard form 424. This program except for feasibility studies is eligible for coverage under E.O. 12372 "Intergovernmental Review of Federal Programs." The RUS utility should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. This program is excluded from coverage under OMB Circular No. A-102. An environmental review is conducted by the agency for the projects. An environmental assessment without scooping is occasionally required.
Application Procedure
Submit application as described in 7 CFR 1703.34, no State plan required.
Award Procedure
RBS selects projects to be funded. The funds pass through the RUS utility to rural economic development projects.
Deadlines
Applications may be filed on any working day during the month.
Range of Approval/Disapproval Time
Appeals
Not applicable.
Renewals
Renewal of same application for one year. Submit new or revised application as often as desired.
Assistance Considerations
Formula and Matching Requirements
This program requires supplemental funds in the amount of 20 percent of the RBS application amounts.
Length and Time Phasing of Assistance
Not applicable.
Post Assistance Requirements
Reports
Reporting need established in 7 CFR 1703, Subpart B.
Audits
Financial audit of the RUS utility is required.
Records
Record retention requirements established in 7 CFR 1703, Subpart B.
Program Accomplishments
From May 1989 to September 30, 2001, 564 loans totaling $120,338,000 and 208 grants totaling $63,486,865 were made. They created 24,498 jobs and were leveraged with $1.02 billion in supplemental capital.
Financial Information
Account Identification
12-4230-0-3-271; 12-3108-0-1-452; 12-3105-0-1-452.
Obligations
(Loans) FY 02 $15,000,100; FY 03 est $15,000,000; and FY 04 est $15,000,000. (Grants) FY 02 $11,000,000; FY 03 est $3,000,000; and FY 04 est $0. (Note: Grants to establish Revolving Loan Fund Programs.)
Range and Average of Financial Assistance
(Loans) for FY 2001, $10,000 to $450,000; $375,000 average. (Grants) for FY 2001, $10,000 to $200,000; $260,000 average. Maximum limits for FY 2001: Loans $450,000; Grants $200,000.
Regulations, Guidelines and Literature
7 CFR 1703, Subpart B and the Rural Electrification Act of 1936.
Related Programs
None.
Information Contacts
Regional or Local Office
Consult your local telephone directory for RD District Office number. If no listing, get in touch with appropriate Rural Development State Office listed in Appendix IV of the catalog.
Headquarters Office
Director, Specialty Lenders Division, Rural Business-Cooperative Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1400.
Web Site Address
Examples of Funded Projects
Establishment or expansion of factories or businesses, medical facilities, industrial development parks, business incubators for rural economic development activities and other job creation projects. Grants were used to establish revolving loan funds.
Criteria for Selecting Proposals
See 7 CFR 1703.46.
