Rural Development Grants

Did you know that USDA has an agency called Rural Development (RD)?  Did you know that this agency has funding available for rural communities including farmers?    RD's main focus is to fund projects that will assist rural communities by providing services, assisting the start-up of new businesses or expanding existing businesses especially if they provide employment for people in those communities.  Check out the ones below that may come into play for you with your farm and community.  I've given ideas to some of them but don't let my imagination limit yours!

Business Programs

Value-Added Producer Grants (VAPG)

Grants are made to help producers increase revenues through value-added activities that expand the customer base for their products or commodities.

Business and Industry Guaranteed Loans (B&I)

Loans made by conventional lenders and guaranteed by USDA Rural Development to help maintain or establish private business and industry enterprises that creates employment opportunities. Eligible projects must be located in communities with populations of 50,000 or less.  (Farms should fit these criteria as well if you employ individuals from your rural area.)

Rural Business Enterprise Grants (RBEG)

Grants made by USDA Rural Development to public bodies, not-for-profit entities or Indian tribes to support the development of private business enterprises. Eligible projects must be located in communities with populations of 50,000 or less. (Farms should fit these criteria as well if you employ individuals from your rural area.)

Rural Business Opportunity Grants (RBOG)

Grants made by USDA Rural Development to public bodies, nonprofit corporations, Indian tribes, institutions of higher education, and rural cooperatives. The primary objective of the RBOG program is to promote sustainable economic development in rural communities with exceptional needs. Eligible projects must be located in communities with populations of 50,000 or less.

Intermediary Relending Program (IRP)

Loans made by USDA Rural Development to intermediaries (public bodies, not-for-profit entities or Indian tribes) at 1% interest for 30 years. The maximum loan to ultimate recipients is $250,000 or 75% of the project cost, whichever is less. Intermediaries establish revolving loan fund accounts and then relend to individuals or public or private organizations to finance business enterprises or community development. Eligible projects must be located in communities with a population of 25,000 or less.

Rural Economic Development Loans & Grants (REDLG)

The REDLG program provides funding for job creation or community development projects through rural electric or telephone cooperatives. Under the RED Loan program, USDA provides zero interest loans to the electric or telephone cooperative which in turn re-lends the funds to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. Under the RED Grant program, USDA provides grant funds to rural electric or telephone cooperatives which use the funding to establish revolving loan funds. Loans are made from the revolving loan fund to projects that will create or retain rural jobs.

Rural Energy for America Program (REAP)

Grants and guaranteed loans are made to farmers, ranchers, and rural small businesses for eligible renewable energy and energy efficiency projects.

Community Programs

Community Facility Direct and Guarantee Loans

Loans made or guaranteed by USDA Rural Development to public bodies, not-for-profit entities or Indian tribes, to finance essential public use facilities and equipment (health, fire, nutrition, libraries, etc.) Projects limited to location in communities with a population of 20,000 or less.  (Idea could be a community licensed kitchen.)

Community Facility Grants

Grants made by USDA Rural Development to public bodies, not-for-profit entities or Indian tribes, to finance essential public use facilities and equipment (health, fire, nutrition, libraries, etc.) Projects limited to location in communities with a population of 20,000 or less.  (Idea could be a farmers’ market facility, food hub, farm product aggregation center or community licensed kitchen.)

Solid Waste Management Grants

Grants made by USDA Rural Development to public bodies, not-for-profit entities or Indian tribes to reduce/eliminate pollution of water resources or improve planning and management of solid waste sites. Projects limited to location in communities with a population of 10,000 or less. (Idea could be a composting facility for food waste in your town.)

 

There are also housing programs as well.