Federal Funding Opportunities

1

• Federal Funding Opportunities

Timothy W. OConnell Assistant to the State
Director USDA/Rural Development
2

• USDA Rural Development Programs

• Over 40 grant, direct loan, and guaranteed loan
  programs to finance housing, businesses, and
  infrastructure in rural areas.
• Program Areas
• Rural Housing Programs
• Rural Utility Programs
• Rural Business and Cooperative Programs

3

• USDA Rural Development Programs

• Business Industry Guaranteed Loan
• Rural Business Enterprise Grant
• projects that finance and facilitate development
  of small and emerging rural businesses help fund
  distance learning networks, and help fund
  employment related adult education programs.
• Rural Business Opportunity Grant
• promotes sustainable economic development through
  training/technical assistance for business
  development, entrepreneurs, and economic
  development officials and to assist with economic
  development planning.
• Rural Energy for America Guaranteed Loan/Grant
• Value-Added Producer Grant

4

• Value-Added Producer Grant Program

• Program designed to assist producers to develop
  businesses that produce and market value-added
  agricultural products.
• Provides grants for planning or working capital
  purposes relating to the marketing of a
  value-added product.

5
What is the VAPG Program?

• 2001-2006, a total of 137.5 million in grants
  were awarded to 938 projects (29 of total
  applications submitted).
• Hawaii has been awarded 967,090 grant funds for
  11 projects (out of 61 applications--18) (4 Big
  Island, 2 Oahu, 2 Kauai, 2 Maui, 1 Molokai).
• Want to get more projects funded for Hawaii.

6
Eligibility Issues

• Applicant eligibility
• Purpose eligibility
• Product eligibility
• Matching eligibility
• Other eligibility requirements

7
Applicant Eligibility

• Independent producers
• Farmer or rancher cooperatives
• Agricultural producer groups
• Majority-controlled producer-based business
  ventures.

8
Purpose Eligibility

• Planning activities, such as conducting
  feasibility studies and developing business plans
  for processing and marketing value-added
  agricultural products.
• Working capital expenses for processing and
  marketing value-added agricultural products,
  including inventory, salaries, and office
  supplies.

9
What is NOT Eligible?

• Purchasing any processing equipment,
• Agricultural production expenses,
• Land purchases,
• Research and Development

10
Product Eligibility

• Change in physical state (e.g. lamb chops, diced
  tomatoes)
• Differentiated production or marketing (e.g.
  organic) - must reference a business plan
• Product segregation (e.g. identity-preserved
  corn)
• Farm-based renewable energy
• Aggregated and marketed as a locally-produced
  agricultural food product 08 FB

11
Match Eligibility

• Matching funds of at least 50 of total project
  costs are required
• Match must be spent at a rate equal to or greater
  than grant funds
• Match must be provided by the applicant or a
  third-party in the form of cash or in-kind funds
• Match must be spent on eligible purposes and must
  be from eligible sources

12
Match Eligibility

• In-kind Matching Funds may not be provided by a
  person or entity that has a Conflict of Interest.
• Conflict of InterestA situation in which a
  person or entity has competing professional or
  personal interests that make it difficult for the
  person or business to act impartially.
• Basically, an applicant cannot match in-kind.

13
Other Eligibility

• Grant period eligibility
• Applications cannot have a timeframe of more than
  365 days
• Completeness eligibility
• Applications must contain all requested
  information to be considered for funding
• Multiple grant eligibility
• Only one application per applicant may be
  submitted in a funding cycle
• Current grant eligibility
• If have a VAPG, the grant period for that grant
  must be scheduled to expire by November 30, 2008

14
Internet Resources

• http//www.rurdev.usda.gov/rbs/coops/vadg.htm
• USDA/Rural Development
• http//www.agmrc.org/agmrc/default.html
• Agricultural Marketing Resource Center
• http//fic.oregonstate.edu/
• Food Innovation Center
• http//fpc.unl.edu/
• Food Processing Center
• http//attra.ncat.org/
• National Sustainable Agriculture Information
  Service

15
Section 9007Rural Energy for America

• Program designed to assist farmers, ranchers and
  rural small businesses with energy projects.
• Provides guaranteed loans and/or grants for
  renewable energy and/or energy efficiency
  projects.

16
Section 9007Rural Energy for America

• Based on 2002 Farm Bill requirements2008 Farm
  Bill has made changes to the programdetails to
  be forthcoming

17
Section 9007Rural Energy for America

• Changes Made
• Establishes a program for performing energy
  auditsgrants.
• Eligible use of funds can be a stand alone
  feasibility study.
• Guarantee increased to 25M
• Combo (loan/grant) increased to 75 of eligible
  project costs.
• Added ocean (including tidal, wave, current, and
  thermal) and hydro-electric.

18
Who is Eligible?

• Rural small businesses and agricultural producers
• Rural All of Hawaii/Western Pacific except the
  Honolulu CDP (Red Hill to Makapuu Point, S and W
  of the crest of the Koolau Mts.).
• Agricultural Producer -- An individual or
  entity directly engaged in the production of
  agricultural products (including farming or
  ranching) that gets 50 of their gross income
  from the operations

19
Who is Eligible?
Area in PinkNOT Eligible
20
Who is Eligible?

• Small Business Must meet Small Business
  Administration (SBA) small business size
  standards (by number of employees or by annual
  receipts)
• www.sba.gov/size/indextableofsize.html
• http//www.sba.gov/idc/groups/public/documents/sba
  _homepage/serv_sstd_tablepdf.pdf
• Non-profits are excluded.

21
Types of Applications

• Grant onlyless than 200,000 in total project
  costs (not grant amount)Simplified
• Grant onlygreater than 200,000 in total project
  costsFull
• Guaranteed Loanless than 600,000
• Guaranteed Loangreater than 600,000
• Combination Guaranteed Loan/Grant

22
What Projects are Eligible?

• Any renewable energy or energy efficiency project
  as defined in the law.
• Biomass, Anaerobic Digester, Geothermal (electric
  generation and direct use), Hydrogen, Wind, Solar
  (photovoltaic and thermal) and small hydro and
  ocean energyadded 2008
• Energy Efficiency Improvements--improvements to a
  facility, building, or process that reduces
  energy consumption, or reduces energy consumed
  per square foot.

23
What Projects are Eligible?

• Grants request can be up to 25 of project costs
• Renewable Energy
• Minimum grant request 2,500
• Maximum grant request 500,000
• Energy Efficiency
• Minimum grant request 1,500
• Maximum grant request 250,000

24
What Projects are Eligible?

• Guaranteed loan request can be up to 75 of
  project costs
• Minimum loan request 5,000
• Maximum loan request 25,000,000
• of guarantee negotiated between the lender and
  USDA.
• Maximum percentage of guarantee
• 85 for loans of 600,000 or less
• 80 for loans of 600,001 to 5 million and
• 70 for loans greater than 5 million to 10
  million.
• gt10M?

25
Resources

• Template for completing an energy efficiency
  Technical Report (under 200K in total project
  costs).
• Application informationdetails on who, what, how
  to apply.
• Templates for a submitting simplified grant, full
  grant, guaranteed loan, and combination
  guaranteed loan/grant projects
• Telephone/e-mail assistance on completing forms,
  etc.

26
Grant Tips

• Read the directions in the funding notice.
• Follow the directions.
• Ask for help, clarity.
• If you need to purchase a bicycle, dont apply
  for a Rolls Royce.
• Read the directions in the funding notice.
• Dont wait until the last minute.
• If you dont at first succeed, try, try again.

27
Grant Tips

• Read the directions in the funding notice.
• Follow the directions.
• Take the approach that you are asking strangers
  to invest in your projectwhy should they?
• Keep it simplemost grantors do not know your
  industry/situation/project.
• Grant writer v- doing it yourself?
• More is not necessarily better.

28
Contact Information

• Timothy W. O'Connell
• Assistant to the State Director
• USDA/Rural Development
• 154 Waianuenue Ave., Room 303
• Hilo, HI 96720
• [phone]
• [phone] (F)
• tim.oconnell_at_hi.usda.gov