Virginia Manuel
State Director
USDA Rural Development
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Our Mission: is to “Increase economic opportunity and
improve the quality of life for all rural Americans.” We
have three major program areas: Housing, Business, and
Community Programs.
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We achieve our mission by helping rural individuals,
communities and businesses obtain the financial and
technical assistance needed to address their diverse and
unique needs.
Rural Development
• Rural Development invested a total of $433.8 million
in Maine in FY 2014:
Through the Housing Programs Rural Development invested a total of $336.7
million and assisted 2,085 Maine families attain homeownership and 5,545
families or individuals were assisted with quality rental housing.
Through our Business & Cooperative Programs, Rural Development invested
$20.5 million in guaranteed loans and grants and assisted 148 businesses,
creating/saving a projected 604 jobs. 8 agricultural producers, rural small
businesses, and renewable energy development assistance recipients received
Rural Energy for America Program (REAP) Grants or Loans.
Through our Community Programs, Rural Development invested $48.1 million
and assisted 35 essential community facilities including libraries, hospitals,
water and wastewater facilities. Of these, 17 rural water or water and waste
systems were assisted providing reliable systems to 15,684 residential and
commercial users.
Rural Development
• Through its Programs, USDA Rural
Development has invested a total of
$9,176,912 in Maine’s Food Systems
projects since Fiscal Year 2006.
Rural Development
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Value-Added Producer Grant Program
Rural Business Development Grant Program
Rural Cooperative Development Grant Program
Rural Energy for America Program
Business & Industry Guaranteed Program
Intermediary Relending and Rural
Microentrepreneur Assistance Programs
Rural Development
Value-Added Producer Grant Program
Maximum award: $200,000 for working capital; $75,000 for planning. Dollar for dollar matching
resources are required.
Description: Value-Added Producer Grants support planning activities, such as developing a
business plan, as well as working capital. Specific funds are available for projects that focus on local
and regional supply networks or support beginning farmers and ranchers, socially
disadvantaged farmers and ranchers, and small or medium-sized farms or ranches.
Who can apply: Independent producers, farmer or rancher cooperatives, agricultural producer
groups, and producer-owned business ventures, including non-profit organizations
Possibilities: Grants may fund projects that: Create a business plan to market value-added
products; Evaluate the feasibility of direct marketing freshly bottled milk; Evaluate the financial
benefits of processing and marketing meat versus selling live animals; Expand marketing capacity
for locally- and regionally-grown products; Expand processing capacity.
Funding: $26 million nationwide was available in FY 2014. Applications scored in Maine. No state
allocation given, but we received, and obligated $471,571.
Rural Development
Rural Business Development Grants
(Previously RBEG and RBOG)
Maximum award: There is no maximum award, but smaller projects receive priority points
Description: The RBDG program funds projects that facilitate the development of small and
emerging rural businesses, distance learning networks, and employment-related adult
education programs.
Who can apply: Local and state governments and authorities, Indian tribes and non-profit
organizations are eligible to reply. For the purposes of this program a "rural community" is an
area where the population does not exceed 50,000, or is next to a city or town with more than
50,000 people.
Possibilities: RBEGs may fund acquisition or development of land; construction, conversion,
or renovation of buildings; purchase of machinery and equipment, including refrigerators and
processing equipment; capitalization of revolving loan funds; provision of training and
technical assistance (unless related to agricultural production); project planning.
Funding: $27 million was available nationwide in FY 2014. Applications are scored by Maine
RD. Maine’s state allocation was $254,00, but we actually obligated $473,900.
Rural Development
Rural Cooperative Development Grant Program (RCDG)
Maximum Award: Estimated Program Funding: $5.8 million. Maximum Grant Amount: $200,000
Cost Sharing Requirement: 25 percent of the total project cost. (5 percent for 1994 Institutions)
Description: The primary objective of the RCDG program is to improve the economic condition of
rural areas by assisting individuals or entities in the startup, expansion or operational improvement
of rural cooperatives and other business entities. Grants are awarded competitively on an annual
basis to Rural Cooperative Development Centers who in turn provide technical assistance to
individuals and entities.
Who can apply: Nonprofit corporations and institutions of higher education can apply for this
program. Public bodies and individuals are not eligible to apply for the RCDG program.
Possibilities: Grant funds may be used to pay for 75 percent (95 percent when the applicant is a
1994 Institution) of the cost of establishing and operating centers for rural cooperative
development.
Funding: $5.8 million is available Nationwide. Applications are scored in the National
Office. Funding, historically, has gone to sustain 2-3 dozen cooperatives.
Rural Development
Rural Energy for America Program (REAP)
Maximum Award: The maximum grant amount is $500,000. The maximum guaranteed loan
amount is $25 million.
Description: This program assists agricultural producers and rural small businesses to purchase
and install renewable energy systems and make energy efficiency improvements.
Who can apply: Agricultural producers, rural small businesses located in all areas except cities of
more than 50,000 and their contiguous and adjacent urbanized areas.
Possibilities: Grants may fund projects to purchase renewable energy systems and make energy
efficiency improvements.
Funding: $58 million was available for Loan Guarantees, $12.5 million for grants Nationwide in
2014.
• Maine RD’s state allocation was $190,000 was allocated in grants in 2014.
• The next funding cycles (two) are in FY 2015.
Rural Development
Business & Industry Guaranteed Loan Program
Maximum Award: The total amount of Agency loans to one borrower must not exceed $10 million.
The Administrator may, at the Administrator discretion, grant an exception to the $10 million limit
for loans up to $25 million under certain circumstances.
Description: The purpose of the B&I Guaranteed Loan Program is to bolster the existing private
credit structure through the guarantee of quality loans which will provide lasting community
benefits.
Who can apply: A borrower may be a cooperative organization, corporation, partnership, or other
legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or
State reservation or other Federally recognized tribal group; a public body; or an individual.
Possibilities: Most legal business purposes except production agriculture. Acquisition, start-up,
refinancing, and expansion of businesses that create rural employment are eligible uses.
Funding: Maine RD’s state allocation was $10,570,000 in loan guarantees, but we obligated
$18,248,851.
Rural Development
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Challenge: USDA Rural Development Programs restrict eligibility
to projects located in rural areas defined as any area other than
a city or town that has a population of greater than 50,000
including the urbanized area contiguous and adjacent to such a
city or town according to the latest decennial census.
Maine Rural Development recently requested approval from our
National Office for “string” exceptions to areas surrounding
Portland. If current non-rural areas are connected to Portland
an any point by two census tracts or less wide, a “string”
exception can be considered for areas beyond that point.
Rural Development
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Opportunity: On April 30, 2014 USDA Rural Development published a
notice in the Federal Register clarifying how the Business & Industry
Guaranteed Loan Program can be used to support local and regional foodrelated projects.
https://www.federalregister.gov/articles/2014/04/30/201409870/locally-or-regionally-produced-agricultural-food-products
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Each year, at least five percent of B&I funds are set aside for local foodrelated projects, with funding priority given to those that provide a benefit
to underserved communities, which is defined as urban, rural, or
Indian Tribal community with limited access to affordable, healthy foods
and a high rate of hunger or food insecurity or a high poverty rate.
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Applicants that serve schools, food banks, or other institutions may be
eligible. Eligible projects can be located in an urban or rural area.
Rural Development
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Challenge: Farmers and Cooperatives are often located in
rural areas that are underserved by broadband, putting them at
a disadvantage to compete locally and regionally.
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Opportunity: As outlined in “Broadband: The Road to
Maine’s Future” The Governor’s Task Force makes
recommendations to expand broadband opportunities in Maine.
(continued)
Rural Development
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Opportunity: Recommendations
included:
Help Maine businesses move to the internet:
◦ Allows rapid communication with customers;
◦ Stimulates new ideas/helps to reach new markets;
◦ Creates jobs and attracts talented young workers.
Rural Development
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USDA Rural Development offers programs to
support broadband expansion. Through the agency’s
broadband programs we expect to have $70 million
available through the Broadband Loan Program
nationwide in FY 2015 to support expanding
broadband into rural areas.
Rural Development
Value-Added Producer Grant Program:
Supporting Tide Mill Organics
USDA Rural Development provided Tide Mill
Organics, of Edmunds Township, with a ValueAdded Producer Grant in the amount of $49,770.
Funds are being used to
increase production and
expand sales of their
packaged organic poultry
from roughly 11,500 to
20,000 birds per year.
Tide Mill Organic Farm is a family-owned and operated farm in
Washington County. Aaron Bell and Carly DelSignore are the
husband/wife team that own and operate the arm of the farm that grows
and markets certified organic foods.
Paige and Henry of Tide Mill Organics
Farm hold baby chicks.
Rural Development
Rural Business Enterprise Grant:
Supporting Local Farmers and Value Added
Processing through Northern Girl
USDA Rural Development provided the Town of
Van Buren with a Rural Business Enterprise
Grant in the amount of $350,000.
Funds were used to construct a new 4,000 square
foot facility, which allows Northern Girl to
process locally-grown vegetables from 12 farms
year round.
Northern Girl will process locally-grown vegetables including potatoes,
carrots, beets, turnips, rutabaga, and parsnips at its new facility in Van
Buren.
Rural Development
Rural Energy for America Program (REAP):
Cozy Acres Greenhouse
USDA Rural Development provided Cozy Acres
Greenhouse, of North Yarmouth, with a Rural
Energy for America Program Grant in the amount of
$48,750.
Funds were used to
purchase a new Greenhouse
which will operate solely on
solar and geothermal
renewable energy systems,
making it Maine’s first NetZero and Year-Round
greenhouse.
Cozy Acres is family- owned
and operated by Jeffrey and
Marianne Marstaller, who
have been growing flowers
and vegetables for 25 years.
Purple Pak Choi (left to right
front); Baby Choi, Russian Kale
Lavenders (left to right middle);
Thyme, Rosemary, Black Seeded
Simpson Lettuce (rear)
Jeffrey Marstaller gives a tour of the greenhouse he and his
wife Marianne, have owned and operated for 25 years. Left:
Cozy Acres Greenhouse Owner Jeffrey Marstaller gives a tour
inside one of his greenhouses. Far right are Congresswoman
Chellie Pingree; USDA Rural Development Deputy Under
Secretary Doug O’Brien; and USDA Rural Development State
Director Virginia Manuel.
Rural Development
Business & Industry Guaranteed Program:
Bruns Bros
USDA Rural Development is providing Bruns Bros, in
Gray, with tw0 Business & Industry Guaranteed
Loans totaling $2.7 million.
Funds will be used for refinancing. Bruns
Bros supports 500 food and beverage
facilities in Maine, New England, and
Pennsylvania including Oakhurst, Hood,
and Poland Springs with its services
ranging from system design, installation, to
custom fabrication.
The business, which has grown from two
employees to 50, is owned and operated
by the Bruns family and was established in
1985.
Bruns Bros is a family-owned and operated business in
Gray. Above: An Oakhurst employee fills gallons of milk.
Oakhurst is one Maine company served by Bruns Bros.
Oakhurst works with 70 independent Maine farms to
produce high-quality milk that is free of artificial growth
hormone.
Rural Development
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USDA Farm Service Agency
USDA Natural Resources Conservation Service
USDA Agricultural Marketing Service
USDA Food and Nutrition Service
USDA National Institution for Food and Agriculture
USDA Risk Management Agency
USDA Forest Service
More information on these resources can be found at:
http://www.usda.gov/wps/portal/usda/usdahome?navid=KYF_
GRANTS
Rural Development
• Agriculture Secretary Tom Vilsack announced the Know Your
Farmer, Know Your Food Initiative on September 15, 2009.
• Through this important initiative, the USDA is focusing on its
current programs and that they are used effectively and new
policies in support of local and regional food systems.
• The USDA has established a website and an interactive map to
share the numerous local and regional food projects around the
country. The website is:
http://www.usda.gov/wps/portal/usda/usdahome?navid=KYF_
COMPASS
Rural Development
USDA Rural Development Maine Office Locations:
Contact Emily Cannon, Public Information Coordinator at emily.cannon@me.usda.gov to obtain a copy of this presentation.
“USDA is an equal opportunity provider, employer and lender.”
To file a complaint of discrimination write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W.,
Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382
Visit our Website: http://www.rurdev.usda.gov/ME_Home.html
Rural Development