Rural Communities Broadband Roundtable October 24, 2013

USDA Rural Development U.S. Department of Agriculture agency Develop economic opportunity and improve the quality of life in rural areas Administer community, business and housing programs Provide assistance through Grants, loans and loan guarantees Includes individual homes, apartment complexes, renewable energy projects, business start-ups and expansions, and public projects such fire stations, village halls, water and sewer systems

Organization Administer more than 20 programs in New York Three major program areas Community Housing Business National Programs administered through regional General Field Representatives (GFRs) and our National Rural Development office Includes telecommunications, utilities , Distance Learning and Telemedicine As noted on the earlier slide, Rural Development administers more than 20 different grant, loan and loan guarantee programs in New York. Most of our programs are administered within our three larger program areas of Housing, Business and Community Programs. Technically, each program is legally still a service and you’ll sometimes see them referred to as the Rural Housing Service, Rural Utilities Service and Rural Business Service. This slide lists our major programs. I won’t read each of them to you because I’ll go into them in depth over but will point out the National Programs bullet at the bottom. Several Rural Development programs are administered directly by our national office and this includes telecommunications, which is going to play a major role in administering broadband funds. Other major national programs are Utilities

Community Facilities Program Overview

Community Facilities Facilities can include: Health care clinics, hospitals, nursing homes, Schools, child care centers, head start centers, classrooms and dormitories Police and fire stations, fire trucks, rescue vehicles, jails, communication centers City/town/village halls, community centers, homeless shelters, food banks, sidewalks, libraries, museums, courthouses, street improvements

Community Facilities Applicants must be a municipality, non-profit organization, or Native American Tribe. Facilities must be located in rural areas with a population of less then 20,000 residents Applicants must be unable to obtain commercial credit at “reasonable rates and terms” Municipalities must go through the Bond Resolution process.

Community Facilities Applicants may apply for grant assistance on a graduated scale, based on the MHI, population, and funding availability. Grants are limited to the minimum amount needed for economic feasibility of the project. Direct loan funds may be used to pay 100% of the project cost. These include: construction, legal council, bond council, architect/engineering, construction inspection, etc.

Community Facilities Interest rates are a fixed rate with a term of the “useful life” of the facility Loans are secured by General Obligation Bonds for municipalities or collateral for a non-profit. Current Interest Rates are: Market rate: 3.125% Intermediate rate: 3.750% Poverty rate: 4.500%

Municipal Buildings

New Rescue Vehicle

Animal Shelter

New Rescue Building

New Home for NP Organization

New Health Center

Libraries

Fire Trucks

Museums

Any Questions

Business Programs Overview

Rural Business Programs Business & Industry Guarantee B & I Rural Business Enterprise Grant RBEG Intermediary Relending Program IRP Rural Energy for America Program REAP Rural Business Opportunity Grant RBOG Value Added Producer Grant VAPG Rural Economic Development Loans and Grants REDLG Rural Cooperative Development Grant RCDG

Business & Industry Guarantee (B&I) create jobs and stimulate rural economies by providing financial backing for the rural businesses Applicant is the banks customer, the bank is our customer Business applies through a Federal or State Chartered bank, credit union, or other approved lenders Can be used for acquisition, start-up, and expansion of businesses Applications must be filed through an eligible lender (pre-applications are recommended)

Rural Economic Development Loans and Grants REDLG Applicant must be Electric Cooperatives & Rural Telephone Companies Provides zero interest loans and grants to rural communities through Rural Utilities Services (RUS) borrowers. Purpose is for Business startup or expansion projects that create rural jobs

Rural Cooperative Development Grant Program (RCDG) You must be a non-profit corporation or an institution of higher education Grant funds may be used to pay for the cost of establishing and operating centers for rural cooperative development Used for technical assistance for improving the economic conditions of rural areas through the development of new cooperatives and improving operating of existing cooperatives. The grant will cover 75% of the cost Maximum grant amount is $200,000

Example of a RCDG recipient The Cooperative Development Institute (CDI) has successfully applied for operating funds for many years from the RCDG program. CDI serves New England and New York as a technical assistance and training provider for new and existing coops Link to their website at http://www.cdi.coop/ , or reach them by phone at 1-877-632-6677 (877-NE-COOPS) or by email at info@cdi.coop

Contacts www.rurdev.usda.gov/ny State Office (315) 477-6400 Stanley Telega – State Director Titus Falkenburg – Community Programs Director Dave Schermerhorn – Business Programs Director Canton Local Office (315) 386-2401 ext.4 Renee Hotte – Lead Area Specialist