COORDINATING U.S. GOVERNMENT ASSISTANCE TO THE FREELY ASSOCIATED STATES USDA RURAL DEVELOPMENT April 5, 2013 Chris J. Kanazawa, State Director Hawaii/Western Pacific/American Samoa State Office

REGION OF RESPONSIBILITY State of Hawaii Guam Commonwealth of the Northern Mariana Islands American Samoa Federated States of Micronesia Republic of the Marshall Islands Republic of Palau

RURAL DEVELOPMENT PROGRAMS Over 40 Grant, Direct and Guaranteed Loan and Technical Assistance Programs Rural Housing Programs Community Programs Rural Utilities Programs Rural Business and Cooperative Programs Rural Energy Programs Providing Access to Capital and Credit for Rural Communities

HOUSING PROGRAMS Housing Programs Offer Grants, Direct and Guaranteed Loans  Single Family Housing  Housing Repairs &Rehabilitation  Self-Help Housing

COMMUNITY PROGRAMS Community Programs Offer Grants, Direct and Guaranteed Loans Community Facilities  Health Care  Public Safety  Public Services Rural Utilities Services (RUS)  Water, Wastewater, Solid Waste, and Drainage Projects  Electric and Renewable Energy Projects  Telecommunication Projects

BUSINESS PROGRAMS  Business and Industry Guaranteed Loans  Rural Business Opportunity Grants  Rural Business Enterprise Grants  Intermediary Relending Program  Value-Added Producer Grants  Rural Energy For America Program

CAPACITY BUILDING PROGRAMS  Rural Business Opportunity Grant (RBOG)  Rural Business Enterprise Grant (RBEG)  Value Added Producer Grant (VAPG)  Rural Energy For America Program (REAP)  Intermediary Relending Program (IRP)  Rural Community Development Initiative (RCDI)  Small Socially Disadvantaged Producer Grant (SSDPG)

SUCCESS STORIES FEDERATED STATES OF MICRONESIA Home Repair & Rehabilitation Loans and Grants Over $200,000 (2010 – YTD 2013)

SUCCESS STORIES FEDERATED STATES OF MICRONESIA Community Facilities Grants for Public Safety Facilities and Equipment $173,000 (2010 – 2012)

SUCCESS STORIES FEDERATED STATES OF MICRONESIA Economic Impact Initiative Grants for Police Vehicles and Special Needs Vans $170,000 (2010 – 2012)

SUCCESS STORIES REPUBLIC OF THE MARSHALL ISLANDS Mutual Self Help Housing Program Since 2006, $3.3 Million to Assist 70 Families with First Time Home Ownership (11 Additional Families in 2012)

SUCCESS STORIES REPUBLIC OF THE MARSHALL ISLANDS Rural Business Opportunity Grant $50,000 to Tobolar Copra Processing Authority in 2012

SUCCESS STORIES REPUBLIC OF PALAU Housing MOU with the National Development Bank of Palau $3.2 Million Portfolio Assisting 186 Families with home rehabilitation and ownership

SUCCESS STORIES REPUBLIC OF PALAU Intermediary Relending Program with the National Development Bank of Palau $1.5 Million Micro-Loan Fund to Finance Agriculture, Fishing, Business, and Renewable Energy Projects

CHALLENGES TO PROGRAM DELIVERY IN FAS  Financial Capacity Ability to repay loans Delinquencies  “Matching” Contributions Grant program requirement Unliquidated Obligations  Land Tenure (required collateral) Land Sale and Investment Restrictions  Lack of Intermediaries Qualified Nonprofits and NGOs  Remote Outer Island Accessibility Travel Reliability, Safety

SOLUTIONS TO “CHALLENGES”  Capacity Building Financial, Skill Sets, Technical Assistance  Identifying “Matching” Funding and Sources to Resolve Delinquencies Compact Grant Funding & Non-Compact USG Federal Funding  Establishment of “Escrow” Collateral Development Banks  Strengthening NGO Community Technical Assistance to Development Banks, Nonprofit Organizations – Rural Development Capacity Building Programs  “Scaling” Projects to Match Capacity of Community Grants, Unsecured Loans, Affordability, Compatibility

RURAL DEVELOPMENT CONTACT Area Office Serving the Republic of the Marshall Islands, the Republic of Palau, Guam, and CNMI Joseph M. Diego, Area Director 770 East Sunset Blvd., Suite 280 Tiyan, GU (671) Area Office Serving the Federated State of Micronesia Gary Bloom, Area Director JEM Building P.O. Box 396 Pohnpei, FM (691)

RURAL DEVELOPMENT “ IMPROVING THE QUALIFY OF LIFE AND INCREASING THE ECONOMIC OPPORTUNITIES IN RURAL COMMUNITIES”