$39 Million Earmarked for Rural Small Businesses

With the Administration's 2009 zeroing out the popular REDL&G program, it's time for cooperatives and their local leaders to seriously consider other funding opportunities. That's where the Rural Business Enterprise Grant (RBEG) funds totaling $39 million in 2008 might provide some financing. With low interest loans for small businesses (fewer than 50 employees and less than $1 million in annual revenue), through revolving loan funds financed by RBEG, this program might be critical to some groups in your community.

Are there organizations in your community that are working with small businesses or  entrepreneurs ready to take the next step or groups eager to expand their facilities and purchase additional space? Or, organizations willing to start revolving loan funds, if they had a grant? Co-ops are not eligible to apply for the grant. However, if you work with or have set up a separate, non-profit entity for business development, your group should consider applying. Local governments and non-profits may apply as well.

Many entities qualify - the guidelines are liberal because the goal is to grow local business. For example, last year's awards went to cities, towns, and counties; numerous business incubators, many economic development entities; universities and colleges; port authorities; tourism and arts projects, and even outdoor recreation groups. View the complete list of last year's recipients.

Please consider sharing this announcement among your community partners. Details about the program are at Financing At-a-Click guide on Cooperative.com. Again, as is often the case, the best place to start is with your State Rural Development offices, which accept RBEG applications on an ongoing basis.

EPA Offers Brownfield Training and Research Grants

Does your community have abandoned areas or buildings that once housed businesses that may have contributed to land degradation -- with chemicals or other pollutants? Perhaps some of the more than 450,000 brownfield sites across the nation are in your backyard. Many of these sites could be reclaimed and contribute public and private revenues, upping the local tax base and improving the overall appearance of your area.

How do you identify brownfields? With environmental projects becoming more popular as a way to clean up air, land and water, the first step is probably the easiest: knowing the source of the problem. Boy and girl scouts in some areas have made identification of the sites a part of their merit badge system. Other communities have relied on seniors and retirees because they have a historical knowledge of the vicinity. There are service groups that may be of help as well.

Then the next step has two parts: identify local partners interested in redeveloping the land as well as contractors and organizations that are in the brownfield's reclamation business. It's easier to partner with an organization with experience in this field. Members of the National Association of Development Organizations -- local in-state entities with surnames such as development areas/agencies, area development districts, commissions, rural development councils and such -- have a history of brownfield work.

For those projects that involve human health protection and sustainable development there are $10 million dollars from EPA's Brownfields, Training, Research and Technical Assistance program. Last year's Job training Grantees included local, county and state governments, foundations, nonprofits, colleges/universities and others. Applications are due to EPA by May 1st.

USDA Announces Grants and Loans for Affordable Rural Housing

Close to $100 million is available to improve substandard housing, particularly rural rental and farm labor properties. These improvements could also focus on making dwellings more energy efficient.  Cooperative housing is also eligible for financing. This announcement is one that you want to forward to groups whom you know are working on housing for on-farm processing plants. In addition, there is financing for those on very low-, low- and fixed income, including the elderly and people with disabilities.

• The Farm Labor Loan and Grant program (also known as the section 514 and 516 program) provides funding to local governments, non-profits, housing authorities and others to buy, build and improve or repair housing for farm laborers, including persons working in on-farm processing plants. 
• The Rural Rental Housing Direct Loan program (section 515) provides competitive mortgage loans to rental housing owners (individuals, public agencies, non-profits and others) to construct rental and cooperatively-owned housing for very low-income, low-income and moderate-income families, the elderly, and people with disabilities.

USDA will award $19.2 million in Farm Labor Loans, $7.5 million in Farm Labor Grants and $69 million in Rural Rental Housing Direct Loans. Farm Labor Housing and Rural Direct Loan applications are both due to your State Rural Development office on May 12 by 5 PM.

USDA To Fund Rural Sustainable Development

Last year, 38 organizations in 23 states received more than $6 million in grants to support rural economic development projects. This year, USDA's Rural Community Development Initiative (RCDI) program will award $6.3 million to fund community, non-profit and educational organizations to provide technical assistance to individuals and community groups that undertake housing, economic and community development projects.

Here's how the program works: RDCI helps community-based groups, Indian tribes and other groups promote growth in low-income, rural communities. The grants go to public, non-profit intermediaries that must match the funds. For example, one group in Oregon received more than $2 million to expand entrepreneurship development and provide resources for training and technical assistance to benefit emerging businesses in four economically stressed rural communities. In Wisconsin, federally recognized tribes will receive assistance for a "green affordable housing initiative."

In 2007 organizations such as Local Initiative Support Corporation and other non-profit development and housing entities applied for grants. See a complete list of award recipients. Applications are due to the State Rural Development office by May 5th. Read the RCDI funding announcement in the Federal Register.

FCC/USDA Announce Rural Broadband Web Site

With broadband -- high speed Internet access -- a town has many, many more opportunities for sustained growth. Conversely, a town without broadband will be less likely to have a technical or community college, incubator, or education/industrial park or be attractive to small businesses or entrepreneurs. USDA and the Federal Communications Commission (FCC) have launched a new Web site to promote and encourage increase broadband access in rural areas. 

The Broadband Opportunities for Rural America site profiles different technology platforms that provide broadband services (wireless, cable, broadband over power lines, etc.), information of spectrum access needed to deliver wireless services, government funding sources, records of key FCC and USDA hearings and initiatives, and data on broadband availability in rural areas. There are links to other public and private resources, as well as instructions for locating licensed wireless service providers in or near the communities your co-op serves.

USDA/DOE Award $18.4 Million for Biomass Development

Funding R&D in the field of biomass is the goal of a new announcement by USDA/DOE that will award $18.4 million for 21 demonstration projects over the next three years. Much of the research will take place at universities and two companies involved in plant to energy research. Projects include: altered plant composition for improved biofuel production; identification of plant genes involved in biosynthesis to promote switchgrass utilitization; developing plant breeding consortium to promote biomass productivity on marginal lands and to develop more effective enzymatic conversion.

Demonstration projects look at value-added products from biomass fermentation as well as product development strategies for the new generation of biofuels and bio-products. Grant recipients are required to raise a minimum of 20 percent matching funds for R&D projects and 50 percent for demonstration initiatives. Learn more about the program and read about all the award winners in the USDA News release.