Rural Development’s Broad Base of Economic Development Programs by Vernita Dore

8/19/2019 Rural Development’s Broad Base of Economic Development Programs by Vernita Dore

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Rural Development’s Broof Economic Development P

Environmental Justice 2016 Co

Vernita Dore, Dep

Gary Bojes, Ph.D., RD – R


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United States Depart#ent o$ %&ricult'USD%(Seven ission !reas

Secretar" #om

$ilsac% &arm ' &oreign !griculture

Services

&ood Safet"

(atural Resources andEnvironment

&ood) (utrition and ConsumServices

ar%eting ' Regulator" Progr

Researc*) Education andEconomics

Rural

Development


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Rural Develop#ent)s Mission

#o assist ruralcommunities in

creating prosperit" so

t*e" are self+sustaining

and economicall"

t*riving t*roug*

investments t*at

create ladders of

opportunit") ,uild

regional resilience and


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Rural Develop#ent Pro&ra# %reas

Rural tilitiesService

•Electric Program

•ater ' EnvironmentalPrograms

•#elecommunicationsandBroad,and Programs

Rural ousing ' Communit"&acilities

•omeo-ners*ip 3oans

•ome Repair 3oans ' 4rants

•utual Self+elp #ec*nical!ssistance 4rants

•ulti+&amil" ousing 3oans

•&arm 3a,or ousing 3oans '4rants

•ousing Preservation 4rants

•Communit" &acilities 3oans '4rants

Rural BusineService

•Business and3oans

•5ntermediar"

•Rural Busines4rants

•Rural Energ"

•$alue !dded

•Cooperative !ssistance


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(ational 78ce

State Directors

Pro&ra# Directors

Specialists

%rchitects *n&ineers

+echnicians

%rea Directors

ative %#erican-oordinators

General ield Representatives

USD% Rural Develop#ent


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Rural Develop#ent undin& Strea#

Direct/oans

Guaranteed /oans

DirectPay#ents

Pro&ra#s


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0ur Rural Develop#ent Partnership ith %#erica

•1:01 to 1:26 ; -ooperative Pro&ra#s *volves$or Rural Businesses

•1:/9 ; Rural *lectri2cation %d#inistration

•1:/


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Rural Develop#ent)sPro&ra#s


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Utilities Pro&ra#s

+he USD% Rural Utilities Service evolved $ro# the Rural *lectri2cation %d#inistration 'R*the ederal Govern#ent)s ;e Deal< pro&ra#s durin& the Great Depression, desi&ned %#erica.

4istory


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Rural %#erica Be$ore ederal Pro


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Rural %#erica Be$ore ederal Pro

Private utilitiesere unillin&to serve rural

areas• o industry or lar&e loads $or electric,

telephone, or sanitary ater service inrural areas

• /o return on invest#ent due tolo population density


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Utilities Pro&ra#s

+eleco##unications Pro&ra#'1:>:(

3ater anP

*lectric Pro&ra#'1:?A(

*ual %ccess to *ssential Services

% -leaner *nviron#ent

Cn$rastructure $or Groth

R l Utiliti S i B F


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Cn$rastrE o$ land #a

*nhanco$ !AE

populat

Rural Utilities Service Borroers FGrantees

%lasa

PuertoRico

Obligations FY 2012 - 2016, as of 12/31/2015

RUS

WEP 4aaii

+h *l t i P


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+he *lectric Pro&ra#s

Principles 3o- interest funding@

!rea coverage@

Cooperative principles Ao-ned ," t*ose -e serve@

and Standardied rural

engineering


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Rural Develop#ent Partners ith /o/eadersCommunit" involvement -as a %e" to implementation

is still %e" forall RD Programs

+h *l t i P


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5n t*e nited States) ElectricCooperatives• Provide retail electric poer to 2 million nation-ide

• Service over 1/F of t*e nation’s meters

• 0n 2F of total distri,ution miles

• Deliver 11F of t*e total %* sold in the U.S. each year

• Generate nearly 9F of total electricit" produced

• Sales 6 9cation *t*e (um,er 1 engineering impact of t*e 20t* Centur"

Source9 .nreca.coop



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!ssistaEnerg"Commu

Section 1: o*lectri2catioa#ended '@authoriHes thelp rural ahi&h cost eno$ adeuatein$rastructu

• USD% Ru4i&h *ne/oansI

• Denali -o*ner&y -/oansI an

Rene-a,leEnerg"• /oans $or eli&i5le

Renea5le technolo&iesinclude9 3ind, Bio#ass,Solar and Geother#al

o +he technolo&y #ust 5eco##ercially availa5le,and

o +he $unds #ust 5e spenton $urnishin& ori#provin& electric serviceto persons in rural areas

• /oans are not li#ited toRural *lectric -ooperatives

•o aitin& in line 5ehindtraditional ossil uel

Energ" E8cienc"and Conservation3oan Program• /oans $or eatheriHation o$

ho#es, heatin&, ventilationand air conditionin&, &roundsource heat pu#ps and li&htin&

•

Utility #i&ht relend $unds toconsu#er $or *ner&y *Jciencyup&rades

• Utility #ay char&e a 1.Apercent interest rate to theconsu#er $or the *ner&y*Jciency loan

• /oans to RUS 5orroers #y

have ter#s up to ? years



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&inancing electric infrastructure in Rural !merica

• 2):< loans outstanding representing G/ Billion in principal

• &inancing electric service to more t*an :0F of t*e (ation’s

persistent povert" counties t*at include out+migration or

*aving ot*er economic *ards*ips

for over =0 "earsH

+he +eleco##unications Pro&ra#s


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• #elecommunications

5nfrastructure 3oan Program

I5nfrastructure

• Distance 3earningK#elemedicine

3oan and 4rant Program ID3#

•

Broad,and !ccess 3oan and 3oan4uarantee Program

IBroad,and

• Communit" Connect 4rant

Program ICommunit" Connect



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#elecommunications5nfrastructure 3oanProgram I5nfrastructure

Principles

3o- interest funding@ !rea coverage@

Cooperatives or companies@ and

Single+part" service



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5nfrastructure Program

• %ssists the private sector in developin&,plannin&, and 2nancin& the constructiono$ teleco##unications in$rastructure inRural %#erica

•

/oan $unds #ay 5e used $or $ull ran&eo$ 5uildin& and #oderniHation activities9o e -onstructiono C#prove#entso *=pansions and %cuisitionso Re2nancin&

Broad,and 3oan Program



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Distance 3earningK#elemedicine Program

• +he D/+ Grant and /oan Pro&ra#s provide rural co##unities ith opportunitieeducational and #edical services $ro# distant locations utiliHin& co##unicatiotechnolo&ies

Communit" Connect 4rant Program• % nationall co# etitive rant ro ra# to



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%ccordin& to the ational %cade#y o$ *n&ineerin&, #elep*onhad the (int* &reatest en&ineerin& i#pact o$ the !th -entu

5nfrastructure Program

&inancing telecommunications infrastruc

in rural !merica• 1,?A loans outstandin& representin& K>.> Billion in princip

3ater and *nviron#ental


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3ater and *nviron#entalPro&ra#s

ater Programs• /oans, Grants, and +echnical %ssistance

Engineering ' Environmental• *n&ineerin& support $or 3ater Pro&ra#s and *nviron#ental support $or all o$ USD% Rura

utilities pro&ra#s

Con ressional Set !sides



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Di7erent -hallen&es Reuire Di7ereResponses&ocus on replacing -ell -ater -it* pu,lic -ater

• ot easily e=tended to re#ote locations ith lo densit

• Municipal 5oundaries and political structures 2t ello +hey provide the or&aniHational structure to #ana&e

ater Programs &unds

• Drinin& ater, sanitary seer, solid aste, and stor# o Brics and #ortar

• Plannin&o +echnical assistance and trainin&o C#provin& operator sills, syste# plannin&, and solid

#ana&e#ent



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Providin& safe and a,undant -ater had the &ourt* greatengineeringi#pact o$ the !th -entury %ccordin& to the ational %cade#*n&ineerin&

&inancing -ater and environmental prograin rural !merica

• 1",!: loans outstandin& representin& K1!." Billion in prin

Business Pro&ra#s


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Business Pro&ra#s

• Business Development in rural areaso inancial resources are o$ten levera&ed ith those o$ other

pu5lic and private credit source lenders to #eet 5usiness andcredit needs in under6served areas

• 3oan 4uarantees for most an" ,usiness purposeo Lo5 creation and retention

• 4rants to encourage ,usiness developmento *ntrepreneurial support 6 technical assistance, re&ional

plannin&, adult trainin&, $easi5ility studies, incu5ators,in$rastructure

• Capitalie revolving loan fundso /oans or &rants to entities that relend the $unds to s#all rural

Strengt*ening ' Diversif"ing Rural

Communities

Creating Jo,s

K" @ Billion Port$olio (as of October 31 2015)


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K".@ Billion Port$olio (as of October 31, 2015)

1"I >EA@I 1E!@>I "E

1!@I ?E

@!

1"

>1>I E

"I !EI !E

A@I 1!E

?:>I E

""I 1E:I E>I 1E

!I !E

??I "E

1I !E

A@@I 1!E

1A:I ?E

>AI :E

!>I E

Number of active loans:more than 4,700

Code 11: Agriculture, Forestry, Fishing and HuntingCode 21: Mining, Quarrying, and Oil and Gas Extraction

Code 22: Utilities

Code 2: Construction

Code 1!: Manu"acturing

Code #2: $holesale %rade

Code ##!#&: 'etail %rade

Code #(!#): %rans*ortation and $arehousingCode &1: +n"oration

Code &2: Finance and +nsuranceCode &: 'eal Estate and 'ental and -easing

Code : .ro"ession, /cienti"ic, and %echnical /er0ices

Code &&: Manageent o" Co*anies and Enter*rises

Code &: Adinistrati0e and /u**ort and $aste Manageent and 'eediation /er0ices

Code 1: Educational /er0icesCode 2: Health Care and /ocial Assistance

Code 1: Arts, Entertainent and 'ecreation

Code 2: Accoendation and Food /er0ices

Code (1: Other /er0ices 3exce*t .u4lic Adin56

Code )2:.u4lic Adinistration

Un7no8n 9A+C/

*ner&y Pro&ra#s


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*ner&y Pro&ra#s

&inancial Support for Sustaina,le Rural Energ"Development

3oan 4uarantees and 4rants• 7Ler funding to

o -o#plete ener&y audits,o Provide renea5le ener&y develop#ent assistance,o Mae ener&y eJciency i#prove#ents, ando Cnstall renea5le ener&y syste#s

• Programs t*at *elpo -onvert older heatin& sources to cleaner technolo&ies,o Produce advanced 5io$uels,o Cnstall solar panels, ando Build 5iore2neries

• Pa"ment programso %ssist co#panies that replace use o$ $ossil $uels ith renea5le 5io#ass

*ner&y Pro&ra#s


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*ner&y Pro&ra#s

&inancial Support for Sustaina,le RuralEnerg" Development

3oan 4uarantees and 4rants

• Rural *ner&y $or %#erica Pro&ra# 'R*%P( /oan Guarantees and

Grants

•Rural *ner&y $or %#erica Pro&ra# 'R*%P( *ner&y %udits FRenea5le *ner&y Develop#ent Grants

• Biore2nery, Renea5le -he#ical, and Bio5ased Product

Manu$acturin& %ssistance Pro&ra#

• %dvanced Bio$uel Pay#ent Pro&ra#

•

Repoerin& %ssistance Pro&ra#

-ooperative Pro&ra#s


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-ooperative Pro&ra#s

#*e overall mission of SD! Co+op Programs is to

promote t*e understanding and use of t*ecooperative form of ,usiness as avia,le organiational option

• #*is is accomplis*ed t*roug*o -ooperative research,o Cn$or#ation products,o

Statistics, ando +echnical assistance

• ! num,er of SD! Rural Development >nancialprograms can also provide funding to *elp ne-and eMisting co+opso Value %dded Producer Gants

o Rural -ooperative Develop#ent Grants

o Socially6Disadvanta&ed Groups Grants

4ousin& Pro&ra#s


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4ousin& Pro&ra#s

Since 1:>:, USD% Rural Develop#ent)s 4ousin&Pro&ra#s have e=tended the drea# o$ho#eonership to #illions o$ rural %#ericans.

3ell, 5uilt, a7orda5le housin& is essential to thevitality o$ co##unities in rural %#erica. 4ousin&Pro&ra#s &ive $a#ilies and individuals theopportunity to 5uy, 5uild, repair, or on sa$e anda7orda5le ho#es located in rural %#erica.

*li&i5ility $or these loans, loan &uarantees, and&rants is 5ased on inco#e and varies accordin& to

the avera&e #edian inco#e $or each area.

5mproving Nualit" of 3ife

Strengt*ening Communities

Building 7-ners*ip ' 7pportunit"

4ousin& Pro&ra#s


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SD!’s ousing Programs *elp rural communities andindividuals ," funding lo-+interest single famil"*ome loans) apartments for lo-+income persons ort*e elderl") *ousing for farm la,orers) and muc*moreH• Sin&le a#ily 4ousin& Direct 4o#e /oans

• Sin&le a#ily 4ousin& 4o#e /oan Guarantees

•

Sin&le a#ily 4ousin& Repair /oans and Grants• Mutual Sel$64elp 4ousin& +echnical %ssistance Grants

• Multi6a#ily 4ousin& /oans

• ar# /a5or 4ousin& /oans and Grants

• 4ousin& Preservation Grants

4ousin& Pro&ra#s

-o##unity acilities Pro&ra#s


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-o u y ac es o& a s

SD! Rural Development’s Communit" Programs assists ruralcommunities in >nancing critical communit" facilities including

Sc*ools ospitals Da" care centers &ire and police stations and

muc* moreH

*ssential co##unity in$rastructure is ey in ensurin& that rural areas en

the sa#e 5asic uality o$ li$e and services enjoyed 5y those in ur5an are

+hrou&h its -o##unity Pro&ra#s, USD% Rural Develop#ent is strivin& t

ensure that such $acilities are readily availa5le to all rural co##unities.

-o##unity acilities Pro&ra#s o7er


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+o i#prove essential pu5lic services and $acilities in co##unities across

%#erica. +hese a#enities help increase the co#petitiveness o$ rural co##unities

attractin& and retainin& 5usinesses that provide e#ploy#ent and service

residents.

-o##unity acilities Pro&ra#s o7erDirect /oans – /oan Guarantees – Grants

? Major -o##unity acilities


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? Major -o##unity acilitiesPro&ra#s

• +he - Direct and Guaranteed /oan pro&ra#s provide direct loans or loan &uapu5lic 5odies, nonpro2t corporations, and Cndian tri5es in co##unities ith a p!, or less.

• %pplicants #ust de#onstrate sound 2nancial practices, the a5ility to repay the

a5ility to e7ectively #ana&e the co##unity $acility.

• - Grants can 5e #ade $or up to @AE o$ the cost to develop a project.

• Priority is &iven to applications received $ro# applicants located in and servin&tons ith populations o$ A, or less and here the #edian household inco#population to 5e served 5y the proposed $acility is 5elo the poverty line or 5eo$ the State non6#etropolitan #edian household inco#e.

ct 3oans A 4uaranteed 3oans A 4rants

Strieorce Cnitiative


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Strieorce Cnitiative$or Rural Groth and 0pportunity

+o support rural counties su7erin& $ro# poverty ona persistent 5asis, USD% esta5lished theStrieorce $or Rural Groth and 0pportunityCnitiative to 5etter coordinate e7orts and pro#oteecono#ic develop#ent in these areas.

• Since the Strieorce launch in !1, USD% haspartnered ith #ore than 1,A co##unityor&aniHations, 5usinesses, $oundations,

universities and other &roups to 5rin& tar&etedassistance to rural areas e=periencin& chronicpoverty.

• +hese e7orts have invested #ore than K!?.A5illion to create jo5s, 5uild ho#es, $eed ids,assist $ar#ers and conserve natural resourcesacross #ore than tenty states.

• Cn !1", USD% Strieorce tea#s ill operate in

ast acts – Median State -hild

!>.:Eu#5er o$ -o##u

1,A:"

+otal USD% Project

"!,!:@ +otal USD% Cnvest

G


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Ct taes a partnership o$ illin&

co##unity leaders, residents,5aners, visionaries

%D

USD% Rural Develop#ent to reviour rural co##unities. +hepossi5ilities are endless.


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Gary.5ojesNdc.usda.&ov O or additional in$or#ation, please visit9

Rural Development’s Broad Base of Economic Development Programs by Vernita Dore

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