Rural Jobs, Rural Opportunities March 29, 2010 Kearney, Nebraska

1. Rural Jobs, Rural OpportunitiesMarch 29, 2010Kearney, Nebraska Deborah Drbal Business & Cooperative Specialist USDA Rural Development �USDA Rural Development is an Equal Opportunity Provider, Employer and Lender� Complaints of discrimination should be sent to USDA, Director, OCR, Washington, D.C. 20250-9410

2. Rural Development Revolving Loan Fund Programs Intermediary Relending Program (IRP) Rural Business Enterprise Grant Program (RBEG) Rural Economic Development Grant Program (REDG) Rural Microentrepreneur Assistance Program (RMAP)

3. Intermediary Relending Program (IRP) �Alleviate poverty and increase economic activity and employment in rural communities, especially disadvantaged and remote communities, through financing targeted primarily towards smaller and emerging businesses, in partnership with other public and private resources through a revolving loan fund� Rural = less than 25,000 population (Nebraska communities over 25,000 population based on 2000 census data; Bellevue, Fremont, Grand Island, Kearney, Lincoln, Omaha)

4. Intermediary Relending Program (IRP) Eligible Applicants - Private Nonprofit Corporations Public Agencies Indian groups Cooperatives � incorporated associations, at least 51 percent of whose members are rural residents, whose members have one vote each, and which conduct, for the mutual benefit of their members, such operations as producing, purchasing, marketing, processing, or other activities aimed at improving the income of their members as producers or their purchasing power as consumers

5. Intermediary Relending Program (IRP) Maximum: $750,000 or the maximum amount the Intermediary can reasonably be expected to lend within one year Request for $500,000 or less captures additional points Loan Terms Intermediary: 30 years; 1% interest 3 year principal deferral-interest only payments Timeline: 3 years

6. Intermediary Relending Program (IRP) Eligible Ultimate Recipient - Individual Public or private organizations or Other legal entities with the authority to incur the debt and carry out the purpose of the loan

7. Intermediary Relending Program (IRP) Focus on loans to ultimate recipients for: business facilities and community development; establishment of new businesses; expansion of existing businesses; creation of employment opportunities, or saving existing jobs; feasibility studies

8. Intermediary Relending Program (IRP) Applications may be submitted at any time Applications reviewed and considered for funding quarterly (Dec 31, March 31, June 30, Sept 30) If not selected, held and considered four quarters All funds held in National Office National Office Allocation � published annually Funding based on application score Native American: earmarked funds available for projects where at least 75 percent of the benefits of the project will be received by members of an Indian Tribe on a Federal or State reservation or other Federally recognized tribal group.

9. Rural Business Enterprise Grant (RBEG) �Finance and facilitate development of small and emerging private business enterprises�; any private business which will employ 50 or fewer new employees (jobs created for the project that the RBEG funding is applied toward) and has less than $1 million in projected gross revenues (for the RBEG program a detailed definition of gross revenue is available upon request) Rural = less than 50,000 population (includes the urbanized area continuous and adjacent, rural area determination mapping available if project area is in question)

10. Rural Business Enterprise Grant (RBEG) Eligible Applicants: Private Nonprofit Corporations serving rural areas Indian Tribes Public Bodies

11. Rural Business Enterprise Grant (RBEG) Funds used to: Provide financial assistance to third parties through a revolving loan fund; Provide technical assistance; Acquisition and development, construction and conversion, machinery and equipment (owned by the grantee); Feasibility studies and business plan studies (business specific); Contracting with an independent 3rd party Timeline: 1 year Native American: earmarked funds available for projects where at least 75 percent of the benefits of the project will be received by members of an Indian Tribe on a Federal or State reservation or other Federally recognized Indian tribal group in a rural area.

12. Rural Business Enterprise Grant (RBEG) Applications may be submitted at any time State Allocation � due date published in press release 3/31 for FY 2010 National Office Allocation & application due date published annually Upon commitment of all state allocated funds Each state may submit two single state applications per year and Each state submits any number of multi-state applications & Native American applications received Funding based on application score

13. Rural Economic Development Grant (REDG) �Promote rural economic development and job creation projects� Rural = under 50,000 population

14. Rural Economic Development Grant (REDG) Eligible Applicants (Intermediary): RUS borrowers that have repaid or prepaid an insured, direct or guaranteed loan under the Rural Electrification Act (REA). Any non-profit utility that is eligible to receive an insured or direct loan under such Act. Any borrower under such Act.

15. Rural Economic Development Grant (REDG) Eligible Grant Ultimate Recipients: Non-Profit Entities Public Bodies Federally-Recognized Indian Tribes For-Profit Entities (in some cases)

16. Rural Economic Development Grant (REDG) Grant Funding to Intermediary: Establishes a Revolving Loan Fund Intermediary is required to contribute 20% of the grant amount to the fund ($300,000 grant x 20% = $60,000)

17. Rural Economic Development Grant (REDG) Intermediary to Ultimate Recipient: 0% Interest Loan, 10 Year Term 1 Year Deferral for Established Businesses 2 Year Deferral for Start-up Ventures or Community Projects Intermediary has opportunity to loan 20% to the UR, or can loan to another eligible project Can charge a rate greater than zero, but equal to or less than prime rate As loan is paid back, funds are deposited into the RLF RLF loans can be made to eligible entities under the grant and loan provisions

18. Rural Economic Development Grant (REDG) Grant Funds used for: Community Development or Community Facility Projects Business Incubators Facilities and Equipment for Medical Care/Training Advanced Telecommunications/Computer Networks to Facilitate Medical or Educational Services for Job Training Feasibility Studies and Technical Assistance

19. Rural Economic Development Grant (REDG) Applications may be submitted at any time Applications reviewed and considered for funding quarterly (Dec 31, March 31, June 30, Sept 30) If not selected, held and considered four quarters All funds held in National Office National Office Allocation � Maximum grant amount published annually; $300,000 FY2010 Funding based on application score

20. Rural Microentrepreneur Assistance Program (RMAP) �Support the development and ongoing success of rural microentrepreneurs and microenterprises (businesses generally with 10 employees or fewer and in need of financing in the amount of $50,000 or less). Rural = less than 50,000 population (includes the urbanized area continuous and adjacent rural area determination mapping available if project area is in question)

21. Rural Microentrepreneur Assistance Program (RMAP) Eligible to receive assistance from Rural Development � MDO Microenterprise Development Organization (MDO) an organization that is: A non-profit entity; An Indian tribe (the government of which tribe certifies that no MDO serves the tribe and no RMAP exists under the jurisdiction of the Indian tribe); or A public institution of higher education; and Provides training and technical assistance to rural microentrepreneurs; and Facilitates access to capital or another related service; and Has a demonstrated record of delivering services to rural microentrepreneurs, or an effective plan to develop a program to deliver such services. Focus on � MDOs serving microentrepreneurs located in rural areas that have suffered significant outmigration. MDOs of varying sizes that serve racially and ethnically diverse populations.

22. Rural Microentrepreneur Assistance Program (RMAP) Eligible to receive assistance from MDO � Ultimate Recipient Microentrepreneur: An owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit. Microenterprises include businesses employing 10 people or fewer that are in need of $50,000 or less in business financing and/or in need of business based technical assistance and training. Such businesses may include any type of legal business that meets local standards of decency. Business types may also include agricultural producers provided they meet the stipulations in this definition.

23. Rural Microentrepreneur Assistance Program (RMAP) Applications may be submitted at any time to RD State Office Applications reviewed by State Office are forwarded to RD National Office and considered for funding quarterly (Dec 31, March 31, June 30, Sept 30) Unsuccessful applications will be considered through a total of four quarterly reviews All funds held in National Office Funding based on application score

24. For More Information USDA RD Nebraska website; http://www.rurdev.usda.gov/ne/rural_business_index.htm Local or State RD office; http://www.rurdev.usda.gov/ne/Contact_Us.htm Quick Facts sheet � information on IRP, RBEG & RBOG programs Revolving Loan Fund Brochure � IRP & RBEG List of projects funded � RBEG & RBOG programs Application templates � IRP & RBEG & RBOG USDA RD website; interested in establishing a RLF, training course at: http://www.rurdev.usda.gov/rbs/busp/IRPTraining/index.html