1. Community Facility Program Committed to the future of rural communities.

2. Purpose  The purpose of the Community Facility program is to improve, develop and assist in financing essential community facilities in rural areas. This purpose is achieved by partnering with the applicant and other funding sources in structuring a financial package that can help to provide lasting community benefits in rural areas throughout Arkansas.

3. Community Facility Types of Funding Available Loan Guarantees – RD Instruction 3575-A Direct Loans – RD Instruction 1942-A & C Grants – RD Instruction 3570-B

4. The Arkansas Community Facility Program  140 – outstanding Direct and Guarantee loans with a cumulative outstanding principal balance of $83,349,534  434 – grants made for a total of $15,208,199 STATEWIDE NUMBERS:

5. Eligible Types of Community Facilities Any essential community facility that is needed for the orderly development of a community, is for public use and is operated on a non-profit basis such as a:  Community Health Center  Hospital, Nursing Home, Assisted Living Center, Mental Health Clinic  Child or Adult Developmental Center  Child Care Center, Senior Center

6. Eligible Types of Community Facilities  Fire Station, Fire and Rescue Equipment, Ambulance, Police Equipment, Early Warning Siren, Emergency Communication Equipment  Library, Community Center, Museum  Farmers Market, Food Pantry  Transitional Home, Homeless Shelter  Correctional Center  Streets, Bridges, Airport, Animal Shelter

7. Loan and Grant Purposes  New Construction, Expansion or Rehabilitation of Existing Facility  Land needed for Facility construction  Equipment  Project Related Professional Fees – Architectural, Engineering, Legal  Initial Operating Expenses and Interest during the construction period (Loan Only)  Refinance of Existing Facility Debt (Loan Only) – if the debt being refinanced is less than 50 percent of the total loan request and existing lender is unable to extend or modify the terms of their loan.

8. Eligibility  Applicant must be either a public body such as a city, town or county, a non-profit corporation or a Federally recognized Indian Tribe.  Facility must be located in a city, town or census designated place with a population of 20,000 or less or in a unincorporated rural area  Facility must serve primarily rural residents  Facility must not include private or commercial undertakings

9. Eligibility The applicant and project must have documented significant community support: significant community support:  Governing Board with a diverse group of board members representing the communities board members representing the communities served served  Public funding through taxes or fundraising  Support by local public bodies and groups

10. Eligibility  Applicant must have the legal authority necessary to operate, maintain and manage the facility and services for use by the public.  Applicant must be unable to finance the entire project from their own resources or through commercial credit at reasonable rates and terms.

11. Community Facility Guaranteed Loans  Provide Private Sector Lender Up to 90% Federal Guarantee on their Loan  There is no maximum dollar amount. The amount of the loan is determined by the amount needed to meet the applicant’s needs and its ability to handle the repayment schedule.  Rates and Terms are negotiated between the Applicant and the Lender  1% Guarantee Fee with no annual renewal fee  Can be combined with the Direct Loan program

12. Community Facility Direct Loans  There is no maximum dollar amount. The amount of the loan is determined by the amount needed to meet the applicant’s needs, its ability to handle the repayment schedule and available funds.  Loan term is based upon the expected life of the facility/equipment with a maximum of 40 years  Interest rates are fixed once a loan is approved and are based on the purpose and median household income of the project service area. Rates are set each quarter and currently are at 4.125%.

13. Grant Eligibility  Grant assistance is very limited and is for rural areas where the median household income of the population to be served by the facility is at or below $28,660.  Grant funding is used to supplement a loan or other funding sources.  The applicant’s available excess funds must be used towards the proposed project.  Grants are typically used for equipment projects.

14. Community Facilities Grants  If needed, grant assistance may be available for 15%, 35%, 55% or 75% of the total eligible cost of the project based on the median household income of the proposed service area and the population where the facility would be located.  Grants are typically $50,000 or less and the average Grant amount in Arkansas for fiscal year 2009 was approximately $35,000.

15. Community Facility Priorities  Applications are accepted year round and priority is given to communities with populations of less than 5,000, lower income communities and for the following projects: Health Care Facilities and Equipment Health Care Facilities and Equipment Public Safety Facilities and Equipment Public Safety Facilities and Equipment  In addition, applications are evaluated on:  If location of project in a Persistent Poverty County, Delta Regional Authority County, Disaster Declared County  Amount of funds provided from applicant, local, and state sources  Amount of Rural Development funding required

16. Examples of Community Health Center Projects in Arkansas that were funded with Rural Development assistance: Medical Clinic Construction: Carlisle, McCrory, Marshall, Clinton, Huntsville, Dermott, Mena, Corning, Pocahontas Medical Clinic Purchase: Bald Knob and Ratcliff Medical Clinic Equipment: Clarendon, Marshall, Mena, Marianna, Corning

17. How can the Community Facility Program be of assistance to you? Contact one of the Rural Development Area Offices near you: Area 1 - Harrison – Johnny James 870-741-4050johnny.james@ar.usda.gov Area 2 – Jonesboro – Justin Ladd 870-972-4671 extension 5 Justin.ladd@ar.usda.gov Area 3 – Forrest City – Gregory Dale 870-633-3055 extension 5 gregory.dale@ar.usda.gov

18. Area 4 – Monticello – Mable Gibbs or Stephen Horsman 870-367-8400 extension 5 steve.horsman@ar.usda.gov mable.gibbs@ar.usda.gov Area 5 – Hope – Dana Wrinkle or Keith Huskey 870-777-8800 extension 5 Dana.wrinkle@ar.usda.govKeith.Huskey@ar.usda.gov Area 6 – Fort Smith – Gary Osborne or Jamie Scott 479-646-8300 extension 5 gary.osborne@ar.usda.gov Jamie.scott@ar.usda.gov

19. Rural Development State Office Rural Development State Office Little Rock, Arkansas Little Rock, Arkansas Stephen Lagasse or David Kirchner– 501-301-3265 Stephen Lagasse or David Kirchner– 501-301-3265 stephen.lagasse@ar.usda.gov stephen.lagasse@ar.usda.gov david.kirchner@ar.usda.gov david.kirchner@ar.usda.gov Rural Development is an Equal Opportunity Lender, Provider and Employer. Web Site: www.rurdev.usda.gov