USDA RURAL DEVELOPMENT

1. USDARURAL DEVELOPMENT Rural Business-Cooperative Service Programs

2. Opportunities In Your Rural Community B&I Loan Guarantee Rural Business Enterprise Grants Intermediary Relending Loans Cooperative Development Grants REDLoans/Grants Cooperative Services Value Added Grants Renewable Energy Grants & Loan Guarantees

3. Rural Area Definition Relates to all programs. Must be located outside a city of 50,000 or more and the adjacent & contiguous urbanized area surrounding that city. Must be separated from an ineligible city and it�s surrounding urbanized area by a definite rural break.

4. Business & Industry Guarantees of up to 80% on loans not exceeding $10 million in rural areas outside a city with a population of 50,000. Purpose - Provide jobs and economic development Guarantees Average Between 1 - 2 Million

5. Maximum Loan Amount Maximum loan amount is $10 million. However, the Administrator may approve a loan up to $25 million for certain high impact/high priority projects. Percentage of guarantee depends on loan amount

6. Maximum Repayment Terms Loans for multiple purposes and/or combination of collateral may use blended terms.

7. Fees and Charges Two types of non-refundable fees Initial Guarantee Fee - 2% of the guaranteed portion of the loan; paid when the guarantee is issued. Annual Renewal Fee � Rate is established by RD in an annual notice published in the Federal Register. For loans obligated and closed in FY 2008, rate is 1/4% multiplied by the principal balance of the guaranteed portion of the loan as of 12/31 of each year.

8. Eligibility Requirements Collateral � Lender will discount collateral in accordance with bank�s normal policies. Discounted value of collateral must be, at least, equal to the loan amount Typical discounted collateral: Real Estate - 80% Equipment � depends Inventory � 60% or less Receivables - 50% or less

9. Tangible Balance Sheet Equity Regulations require minimum TBSE at closing: 10% for existing businesses 20% for new businesses Must be calculated from a balance sheet prepared in accordance with GAAP Assets valued at cost less depreciation No appreciated market value on balance sheet Intangible assets must be subtracted from the calculation. Ex. patents, franchises, loan costs, loans to owners. Typically included as �Others Assets�

10. Borrower Profile Acceptable Personal/Corporate Credit History Must Show Evidence Of Management Ability To Successfully Operate The Business Repayment Ability (Debt Service Coverage) Adequate And Acceptable Collateral To Secure The Loan

11. Eligible Lenders Banks Insurance Companies with lending experience Non-traditional Lenders (subject to RD approval) Other regulated lenders: eg. Farm Credit

12. Benefits to the Customer No balloon payments/fully amortized loans Possibly longer terms Possibly lower interest rate and/or fixed rate

13. Eligible Purposes Real Estate purchases & improvements Equipment, inventory Working Capital � term loans only Debt Refinancing � when necessary to improve cash flow. Existing lender debt Business Acquisition � when necessary to save or increase jobs.

14. B & I Loan Eligibility And Approval Process * Applicant identifies a lender. Borrower submits business plan/info. Lender contacts RD to discuss the project. Lender/Borrower jointly prepare appropriate forms. Lender spreads and analyzes. Lender submits application. RD completes Analysis, EA, SLC approval. Conditional Commitment 6 working days later.

15. $5,000,000 B&I Loan $5,000,000 B&I Loan

16. B&I loan for new convenience store in Dade CountyB&I loan for new convenience store in Dade County

17. Rural Business Enterprise Grants To facilitate the growth of small and emerging businesses Eligible areas are outside cities, towns with populations of 50,000 or more Eligible purposes are R.E. acquisition, construction, machinery, equipment, infrastructure, RLF, TA Only for public bodies & non-profits

18. RBEG to provide infrastructure to accommodate hotel in Jackson CountyRBEG to provide infrastructure to accommodate hotel in Jackson County

19. Intermediary Relending Program Provide loans for funding revolving loan programs in rural areas To public bodies and non-profit organizations Terms - 30 years Rates - 1%

20. IRP Loans to Ultimate Recipients Maximum loan - $150,000 UR must provide 25% match UR must be outside a city or town of 25,000 or more No agricultural production, gambling or racetracks

21. Value Added Producer Grants Purpose: To promote the increase in the percentage of the consumer dollar realized by the producer of the agricultural product. Eligible applicants are producers or groups of producers. Must add value to a product or enter a new and/or expanded market. A portion of the funds will be used to create value added innovation centers. Guidelines will be published in Federal Register

22. Cooperative Development Grants To finance the establishment and operation of centers for cooperative development and assistance Eligible applicants are non-profits, Indian Tribes Applications may be submitted to the State Office

23. Rural Economic Development Loans To finance rural economic development and job creation projects. Loans are made to RUS electric and telephone borrowers Loans are made to finance a variety of projects including for profit businesses. Loans may be passed through to the UR Max term = 10 years @0%. May charge up to 1% for servicing.

24. Renewable Energy Grants & Loan Guarantees Eligible Recipients are Ag. Producers & Rural Small Businesses Grants up to $500,000 � L/G up to $10,000,000 Solar, Wind, Biomass, Geothermal, Hydrogen Application window is announced in the Federal Register.

26. $450,000 REDLG Loan to West Fla. Electric Cooperative$450,000 REDLG Loan to West Fla. Electric Cooperative

27. Funding Levels FY 2009

28. FY 2009 Funding B&I Guarantees $30,532,000 FL $5,000,000 USVI RBEG $606,000 FL $50,000 USVI RBOG $684,000 NA IRP Loans $ 35,000,000 NA RED Loans $ 19,000,000 NA VAPG $14,000,000 NA Renewable Ener. $204,000,000 NA

29. Regulations, Forms & Guides Available from the internet at: http:\\www.rurdev.usda.gov/rbs or by calling or writing any Rural Development office. Windows based forms software is available for B&I guarantee program. Joe.mueller@fl.usda.gov

30. Contact Information Joe Mueller Susan Campbell Bruni Robles 352-338-3482 Joe.mueller@fl.usda.gov Susan.campbell@fl.usda.gov Brunilda.robles@fl.usda.gov