RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Rural Electrification Act of 1936, as amended, Title III, 7 U.S.C. 930-940c.

OBJECTIVES:

To promote rural economic development and job creation projects, including funding for project feasibility studies, start-up costs, incubator projects, and other reasonable expenses for the purpose of fostering rural development.

TYPES OF ASSISTANCE:

Project Grants;  Direct Loans.

USES AND USE RESTRICTIONS:

Projects which promote rural economic development and job creation. For fiscal year 2000, maximum amount of grant is $200,000; maximum amount of loan is $450,000. Maximum term of loan is ten years at zero interest rate.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Electric and telephone utilities that have current loans with the Rural Utilities Service (RUS) or Rural Telephone Bank loans or guarantees outstanding and are not delinquent on any Federal debt or in bankruptcy proceedings.

Beneficiary Eligibility:   Rural/General Public.

Credentials/Documentation:   This program is excluded from coverage under OMB Circular No. A-87.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   Application Form: OMB Standard form 424. This program except for feasibility studies is eligible for coverage under E.O. 12372 "Intergovernmental Review of Federal Programs." The RUS utility should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. This program is excluded from coverage under OMB Circular No. A-102. An environmental review is conducted by the agency for the projects. An environmental assessment without scooping is occasionally required.

Application Procedure:   Submit application as described in 7 CFR 1703.34, no State plan required.

Award Procedure:   RBS selects projects to be funded. The funds pass through the RUS utility to rural economic development projects.

Deadlines:   Applications may be filed on any working day during the month.

Range of Approval/Disapproval Time:   Open ended.

Appeals:   Not applicable.

Renewals:   Renewal of same application for one year. Submit new or revised application as often as desired.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   This program requires supplemental funds in the amount of 20 percent of the RBS application amounts.

Length and Time Phasing of Assistance:   Not applicable.

POST ASSISTANCE REQUIREMENTS:

Reports:   Reporting need established in 7 CFR 1703, Subpart B.

Audits:   Financial audit of the RUS utility is required.

Records:   Record retention requirements established in 7 CFR 1703, Subpart B.

FINANCIAL INFORMATION:

Account Identification:   12-4230-0-3-271; 12-3108-0-1-452; 12-3105-0-1-452.

Obligations:   (Loans) FY 99 $15,000,100; FY 00 est $15,000,000; and FY 01 est $15,000,000. (Grants) FY 99 $11,000,000; FY 00 est $4,000,000; and FY 01 est $4,000,000. (Note: Grants to establish Revolving Loan Fund Programs.)

Range and Average of Financial Assistance:   (Loans) for FY 1999, $10,000 to $450,000; $375,000 average. (Grants) for FY 1999, $10,000 to $330,000; $260,000 average. Maximum limits for FY 2000: Loans $450,000; Grants $200,000.

PROGAM ACCOMPLISHMENTS:

From May 1989 to September 30, 1999, 564 loans totaling $120,338,000 and 208 grants totaling $63,486,865 were made. They created 24,498 jobs and were leveraged with $1.02 billion in supplemental capital.

REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR 1703, Subpart B and the Rural Electrification Act of 1936.

INFORMATION CONTACTS: