USDA Rural Development California
Introduction & Overview
www.rurdev.usda.gov/ca
January 30, 2015
Dan Johnson
Area Specialist
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 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 FY2014: $973 Million
Single Family
Housing
$725 Million
Community
Programs
$52 Million
Business &
Cooperatives
$70 Million
Multi-Family
Housing
$126 Million
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
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 nonprofit, public agency,
tribal or cooperative intermediaries
– 1% interest rate
– Maximum loan to 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 fulltime employees
– Up to $50,000 loans for ultimate beneficiaries or
75% of project cost
– Grants require 15% match
Business & Cooperatives
Funding Opportunities
• Rural Business Development Grant (RBDG)
– Combines the Rural Business Enterprise Grant
(RBEG) and Rural Business Opportunity Grant
(RBOG)
– Details in January 2015
Business & Cooperatives
Funding Opportunities
• Rural Economic Development Loans & Grants
(REDLG)
– Finances local utilities to fund local businesses for
job-creating projects
– Annual Notice of Funding Availability
Business & Cooperatives
Funding Opportunities
• Rural Energy for America Program (REAP)
Guaranteed Loans & Grants (9007)
– Annual Notice of Solicitation of Applications
– 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
• Biorefinery, Renewable Chemical, and
Biobased Product Manufacturing Assistance
Program (9003)
– 20 year term
– Guarantees of varying percentages
– Maximum $250 million loan
– Up to 80% of project cost
Business & Cooperatives
Funding Opportunities
• Advanced Biofuel Payment Program (9005)
– Payments to advanced biofuel producers from
sources other than corn kernel starch
– Quarterly Base Production and Annual
Incremental Production payments
– Eligible producers may include biodiesel, ethanol
and dairy digesters producing electricity, etc.
Business & Cooperatives
Funding Opportunities
• Repowering Assistance Program (9004)
– Direct payments to biorefineries to replace fossil
fuels with renewable biomass for operating power
– Eligible biorefineries must have been built before
June 18, 2008
Business & Cooperatives
Funding Opportunities
• Value-Added Producer Grants
– To assist in processing and/or marketing of biobased value-added products
– Planning grants maximum $75,000
– Working Capital grants maximum $200,000
– 3 year term
– Grants up to 50% of project costs
Business & Cooperatives
Funding Opportunities
• Small Socially Disadvantaged Producer
Program (SSDPP)
– Technical assistance grants through cooperatives
and cooperative development centers
– Maximum $200,000 grant
– No match required
Business & Cooperatives
Funding Opportunities
• Rural Cooperative Development Grants
(RCDG)
– Grants to Rural Cooperative Development
Centers to provide technical assistance to
individuals and entities
– Maximum $200,000 grant
– 25% of project cost match requirement
Business & Cooperatives
Eligible Areas
Applicants must be
located in rural areas
with populations less
than 50,000.
Business & Cooperatives
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
Funding Opportunities
• Water and Waste Disposal Loan and Grant
Program
– Low interest rates extend for up to 40 year loans
• Currently 2.125% - 3.5%
– Grants are up to 75% of project cost
• Low income communities must be correcting health or
sanitary problem
Community Programs
Funding Opportunities
• Emergency Community Water Assistance
Grant (ECWAG)
– Grants may cover 100% of project costs
– Two levels of funding:
• Under $150,000: water line repairs, maintenance,
extensions and connections
• Under $500,000: new water source or treatment plant
construction
Community Programs
Funding Opportunities
• Native American 306C Grant
– Per capita income must be ≤$18,590
– Unemployment rate must be ≥9%
– $2,000,000 maximum per project in FY14
– Approx. $19,500,000 nationally available FY14
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 Community Development Initiative
– Training and technical assistance grants to
intermediary organizations
– Minimum grant per intermediary: $50,000
– Maximum grant per intermediary: $250,000
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 to100% 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: $3,000,000
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
SINGLE FAMILY HOUSING
What is the mission of Single Family
Housing?
• To help rural residents become homeowners
• To create jobs
• To stimulate sustainable economic
development
Single Family Housing
Beneficiaries of Our Programs
• Very Low, Low and Moderate Income families and
individuals
– Must be unable to obtain a loan from other sources
• Public bodies and public nonprofit organizations
Single Family Housing
Funding Opportunities
• Single Family Housing Direct Loan (Sec. 502)
– Mortgages to low-income/very-low-income
families to purchase/build/improve/repair/rehab
rural homes
– Up to 100% financing available
– Maximum repayment period is 30-38 years
Single Family Housing
Funding Opportunities
• Guaranteed Rural Housing Loan (Sec. 502)
– Applicants may have income up to 115% of local
median income
– May purchase new or existing home, pay closing
costs or insurance, or conduct repairs
– 2% guarantee fee
Single Family Housing
Funding Opportunities
• Repair Loan and Grant (Sec. 504)
– Very low income homeowners
– Up to $20,000 in loans and grants
– Must be 62 years old or older to receive grants or
combination loans-grants
– Up to $7,500 grant per applicant
– 20 year term loan at 1% rate
Single Family Housing
Funding Opportunities
• Self-Help Housing Program
– Very low and low income households
– Groups of 6-10 build their own homes together
– Applicants are intermediary nonprofits or other
public bodies
Single Family Housing
Funding Opportunities
• Rural Housing Site Loans
– Purchase and development of housing sites
– Low and Moderate Income families
• 50%-80% of area median income
– Two year term
Single Family Housing
Funding Opportunities
• Individual Water and Waste Grants
– Connect service lines
– Pay hook-up fees
– Install plumbing and related fixtures
– Only colonias eligible
Single Family Housing
Eligible Areas
Must be located
in a town
generally less than
35,000 in
population
Single Family Housing
MULTI-FAMILY HOUSING
What is the mission of Multi-Family
Housing?
• To provide adequate, affordable, decent, safe
and sanitary rental units for very low, low and
moderate income households in rural
communities
Multi-Family Housing
Beneficiaries of Our Programs
•
•
•
•
•
•
•
•
Individuals
Corporations
Associations
Partnerships and limited partnerships
Trusts
Public or private organizations
Consumer cooperatives
Federally recognized Tribes
Multi-Family Housing
Funding Opportunities
• Rural Rental Housing Loans (Section 515)
– Very low to moderate income families
– Elderly and persons with disabilities
– For construction, purchase, development, etc.
Multi-Family Housing
Funding Opportunities
• Guaranteed Rural Rental Housing Loan
(Section 538)
– Tenant income cannot exceed 115% of MHI
– Average rent cannot exceed 30% of local median
income
– 25 year term
Multi-Family Housing
Funding Opportunities
• Farm Labor Housing Loans (Section 514) &
Grants (Section 516)
– Very low, low, or moderate income households
– Must be US citizens
– Includes retired, elderly, and/or disabled laborers
Multi-Family Housing
Funding Opportunities
• Housing Preservation Grant (HPG Section
533)
– Very low and low income households
– For homes that do not meet decent, safe, sanitary
and handicap-accessible standards
Multi-Family Housing
Funding Opportunities
• Rental Assistance Program
– For existing and new Rural Rental Housing and
Farm Labor Housing projects
– Very Low and Low Income individuals and families,
elderly and disabled
Multi-Family Housing
Eligible Areas
Urban and rural
areas are eligible
Multi-Family Housing
Questions?
Find our California Quick Reference Guide
Contact Us at the State Office
Business & Cooperatives
Single Family Housing
Janice Waddell, Acting Program
Director
Ron Tackett, Program Director
(530) 792-5810
Janice.waddell@ca.usda.gov
Community Programs
Anita Lopez, Program Director
(530) 792-5822
Anita.lopez@ca.usda.gov
(530) 792-5816
Ron.tackett@ca.usda.gov
Multi-Family Housing
Stephen Nnodim, Program Director
530-792-5830
Stephen.nnodim@ca.usda.gov
Contact Us!
Dan Johnson
Area Specialist
(661) 336-0967 x127
daniel.johnson@ca.usda.gov