1. South Dakota USDA Rural Development SDTA Conference: August 20, 2013 1

2. South Dakota USDA Rural Development To increase economic opportunity and improve the quality of life for all rural Americans 2

3. USDA - Rural Development Rural Business / Cooperative Programs Rural Housing Programs Special Initiatives Rural Utilities 3

4. A smart rural community uses broadband networks to enable applications that the community can leverage for: Education Health care Economic Development and commerce Government Services Security Utility Use http://www.ntca.org/smart-rural-community/smart-rural-community.html 4

5. Smart World Smart utility networks, rural utility, Rural Development and broadband providers can partner to leverage each other’s strengths and share resources 5

6. Rural Business Programs 6

7. RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT (REDLG) Capitalization of revolving loan funds Technical assistance in conjunction with projects funded under a zero interest REDLoan Business Incubators Community Development Assistance to non-profits and public bodies (particularly job creation or enhancement) Facilities and equipment for education and training for rural residents to facilitate economic development Facilities and equipment for medical care to rural residents Telecommunications/computer networks for distance learning or long distance medical care 7

8. Business and Industry Program For starting or expanding rural businesses and cooperatives Reduces risk to lenders and raises their lending limits Guarantees to local lenders 80% up to $5 million 70% up to $10 million 60% up to $25 million 8

9. Provides Grants to: Public Bodies (Cities) Non-Profits, Tribes All Serving Rural Areas Rural Business Enterprise Grant (RBEG) Grants can finance small and emerging private businesses and cooperatives, provide technical assistance or fund a revolving loan program Commonly requests are $99,000 or less have higher priority 9

10. Rural Business Opportunity Grants (RBOG) Eligible applicants: tribes, nonprofits, public bodies Purposes: –Identify and analyze business opportunities –Provide TA to existing or prospective entrepreneurs –Conduct local or multi-county Econ. Dev. Planning –Conduct leadership training –Pay for professional services for planning or training. Priority scoring: Applications under $50,000 10

11. Value Added Producer Grants (VAPG) Eligible: Individuals, LLC, LLP, For-Profits, or Non- Profits that are owned or controlled by Ag Producers Funding under a NOFA (Deadline) ( likely due in mid July) Planning Grant $100,000 Working Capital $300,000. There is a $1 to $1 match requirement Must be a change in the physical state of the product 11

12. Rural Energy for America Program Grants and Loan Guarantees for Farmers, Ranchers, and Rural Small Businesses 12

13. Renewable Energy and Energy Efficiency Improvement Purchase renewable energy systems (A system that produces or produces and delivers usable energy from a renewable energy source) Energy Efficiency Improvements (Improvements to a facility or process that reduce energy consumption) Solar Powered Stock Tanks in the Powder River Basin: A Renewable Energy System for Livestock Producers

14. Intermediary Relending Program Eligible applicant: non profits, Tribes, public agencies Purpose: start a revolving loan fund Rates & Terms – 1% for 30 years to the intermediaries and they relend Deadline to apply: quarterly 14

15. Rural Housing Program 2013 Inaugural meeting of key stakeholders for the creation of a SD Native Homeownership Coalition New housing construction can provide rural utility consumers access to robust broadband networks as well as energy efficiency technologies and applications in their new dwelling to better manage their monthly utility costs. 15

16. 502 Single Family Housing Program 502 Direct Housing Loans are at 100% financing for low & very low income families. Guaranteed Loans are at 100% financing for households with higher incomes. No down payment. Generous ratios of 29% PITI and 41% TD. Closing costs can be financed. Memorandum of Understanding signing with Crow Creek Indian Reservation for 502 Direct Loan Packaging/partnership with Housing Authority 16

17. Guaranteed Loan Program Guidelines Available to families or persons whose incomes at time of initial occupancy do not exceed 115 percent of Median Household Income. Up to 90 percent Guarantee. 17

18. 504 Single Family Housing Program Loans or grants for elderly single family home owners 62 years of age or old. Loans are at 1% interest rate for 20 years with a maximum amount of $20,000. Maximum grant amount is $7,500 life time.

19. Multi-Family Housing Program Rural Rental Housing Direct Loans Section 515. MFH in communities of 20,000 population or less. Rental Subsidies available to low income tenants. Housing built with 515 loans is for families, people 62 years of age or older, and people with disabilities. Serves mostly low income families. 19

20. Water and Environmental Program Direct and guaranteed loans and grants to install, expand, and improve water and wastewater systems, solid waste disposal, and storm sewers. In towns under 10,000 population. Public Body, town or county Not for profit organization Associations Indian Tribes Technology that connects and improves the energy distribution system, including the utility’s sensors, switches, voltage controls and its monitoring system control and data acquisition (SCADA) systems at substations can be implemented 20

21. Sanitary Sewer Projects New Sewer Systems Sewer System Extensions Wastewater Treatment Plant Improvement

22. Community Facilities Program Direct and guaranteed loans, and grants, to public entities, Indian tribes, and nonprofits. Improve the economic and environmental climate of rural communities. Examples: Health Care – hospitals, clinics, nursing homes; Public Services – adult & child care, airports, schools, libraries; Public Safety – police & fire stations, vehicles, jails. Expanding access to affordable health care and health IT to rural Critical Access Hospitals and clinics through telemedicine services and applications. 22

23. Community Facility Direct Loans Fixed Interest Rates (3.5% 8/2013) Up to 40 Year Terms Available in communities under 20,000 population.

24. Initiatives Local Foods StrikeForce Stronger Economies Together Smart Rural Communities

25. Rural Utilities Programs Wayne Ahlgren, GFR wayne.ahlgren@wdc.usda.gov wayne.ahlgren@wdc.usda.gov Office: (701) 258-7508 Cell: (701) 226-1043 25

26. Rural Broadband Access Loan and Loan Guarantee Telecommunications Infrastructure Loan Community Connect Grant Distance Learning and Telemedicine Broadband/Telecommunications

27. FY 2012 Results and FY 2013 CR RUS Telecommunications Program *Available funding includes authorized budget and amounts carried over from previous fiscal year Program level Funding ($ millions) 2012 Budget 2012 Available Funding* 2012 Obligations 2013 Continuing Resolution Infrastructure Loans$690.0 $79.7$690.0 Broadband Loans$169.0$736.0$68.9$39.0 Distance Learning and Telemedicine Grants$15.0$16.1$15.6$17.5 Community Connect Grants$10.4$14.2$5.5$9.6 27

28. A nationally competitive grant program to provide broadband service to the most rural and economically challenged communities Since inception, the program has provided 229 grants and invested $122 million Rural Areas and Communities of 20,000 population or less RUS published a proposed rule in the Federal Register on November 16, 2012, which proposed a number of changes to the current regulation. Final Rule is in the process of being published. Grantees must provide 15% matching Information is available on the website at: http://www.rurdev.usda.gov/utp_commconnect.html http://www.rurdev.usda.gov/utp_commconnect.html The Community Connect Grant Program 28

29. The Community Connect Grant Program Eligible Grant Purposes Grant funds may be used to finance: The construction, acquisition, or leasing of facilities, including spectrum, land or buildings, used to deploy service at the Broadband Grant Speed to all residential and business customers located with the Proposed Funded Service Area and all participating Critical Community Facilities, including funding for up to ten Computer Access Points to be used in the Community Center. The improvement, expansion, construction, or acquisition of a Community Center and provision of Computer Access Points. The cost of providing the necessary bandwidth for service free of charge to the Critical Community Facilities for 2 years. 29

30. The Distance Learning and Telemedicine (DLT) Grant Program Definitions and Purpose DLT Grants are not just a way to obtain educational technology or medical equipment. The focus is on using the unique capabilities of telecommunications to connect rural areas to each other and to the world, thus overcoming the effects of remoteness and low population density. Distance learning means a curriculum delivered via telecommunications and stresses the connection of students and teachers at remote sites. Telemedicine means the delivery of health care from medical professionals at one site to patients at other sites via telecommunications. Telemedicine shows benefit to rural residents either in reduced travel or access to services. 30

31. The DLT Grant Program Typical Projects Video-conferencing is the most common for distance learning Telemedicine: Visiting nurse links from patient homes to health professionals elsewhere Tele-radiology Tele-dentistry Tele-pharmacy Virtual ICU 31

32. The Telecommunications Infrastructure Loan Program Since 1949, the Telecommunications Infrastructure Loan Program has provided financing for new and improved telecommunications infrastructure in rural communities of 5,000 or less. Applications are accepted year-round. Interest rates are set at current U.S. Treasury rates, depending on loan maturity at the time of each advance. Term of loan is based on life of facilities financed. Guaranteed loans from the Federal Financing Bank (FFB) and Hardship loans at a fixed 5% rate of interest may also be available. All infrastructure financed must be broadband capable. 32

33. The Telecommunications Infrastructure Loan Program Eligible Loan Purposes Loan funds may be used to finance telecommunications services in rural areas for: new construction; improvements; expansions; acquisitions (with restrictions); and refinancing (with restrictions) 33

34. The Farm Bill Broadband Loan Program This program is designed to provide loans for funding, on a technology neutral basis, for the costs of construction, improvement and acquisition of facilities and equipment to provide broadband service to eligible rural communities. The program’s goal is to ensure that rural consumers benefit from the same quality and range of telecommunications services that are available in urban and suburban communities. Created under the 2002 Farm Bill and reauthorized under the 2008 Farm Bill. 34

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36. USDA Rural Development State Office 200 4 th Street SW, Federal Building Rm. 210 Huron, SD 57350-2477 (605) 352-1100 or 1-800-670-6553 Christine Sorensen USDA Rural Development Rural Development Coordinator 1717 N. Lincoln, Suite 102 / Pierre, SD 57501 Cell Phone: 605.530.5353, Office: 605.224.8870, Ext. 123 Christine.sorensen@sd.usda.gov To file a complaint of discrimination, write to: USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410 Or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). “USDA is an equal opportunity provider and employer.” 36