When most people think about U.S. government programs that were created by Congress and the President to support the creation and on-going operation of small businesses, the first agency that comes to mind is likely the Small Business Administration. However, in nearly every agency of the U.S. government, there are small-business focused programs, contract "set-asides," research grants, loan guarantee programs and more. In the coming weeks, we will be introducing these agencies and programs to the users of SmallBusiness.com. Today, we've small town and rural small business expert Becky McCray to provide use with an overview of the Rural Development program of the U.S. Department Agriculture. (Learn more about Becky in this article's by-line info-box.)
The USDA's Rural Development program was created to improve the economy and quality of life in rural America. It is a huge, wide-ranging program with a big challenge. As more and more of America's youth have migrated to its urban centers, it has become more-and-more apparent to economists and lawmakers that encouraging economic development in rural areas and small towns is vital to all Americans who rely on the food, fuel and goods these communities produce. And that would be all of us.
The program offer loans, grants and loan guarantees to support essential services such as housing, economic development, health care, first responder services and equipment, and water, electric and communications infrastructure. It promotes economic development by supporting loans to businesses through banks, credit unions and community-managed lending pools and offers technical assistance and information to help agricultural producers and cooperatives get started and improve the effectiveness of their operations.
Finding ways to connect market needs with products produced, grown or manufactured in rural areas is the challenge for the USDA's Rural Development team. Working with state, academic and regional agencies, they fund through grants and loans programs to strengthen utilities, encourage home ownership, improve community facilities which can include any facility you might think a small town needs: fire departments, libraries, community centers, health care facilities, and on and on.
I've personally been involved in some projects with Rural Development teams and found them quite a positive force for rural places. Of course, with any large organization, some of them can be hampered by "stuck in their ways" thinking, but that's the exception, not the rule.
Some specific objectives of the USDA Rural Development program
- Assist in helping people find affordable housing
- Help people become first-time homeowners
- Connect America's remote towns with medical providers and business customers via technology and communications
- Improve critical water and other community facilities
- Through energy efficiency, lower utility costs for residents and businesses through energy efficiency
- Bolster local and regional food systems
- Support the creation and growth of small businesses
Rural development programs for businesses
- Business Industry Loan Guarantees
- Intermediary Relending Program
- Rural Business Development Grants
- Rural Business Investment Program
- Rural Economic Development Loan, Grant Program
- Rural Microentrepreneur Assistance Program
- Value Added Producer Grants
- Rural Cooperative Development Grants
- Advanced Biofuel Payment Program
- Repowering Assistance Program
- Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program
- Rural Energy for America Program (REAP) Energy Audits, Renewable Energy Development Grants
- Rural Energy for America Program (REAP) Renewable Energy, Energy Efficiency Loans, Grants
- Strategic Economic and Community Development
By the numbers: 2015 USDA Rural Development activities that support business development
1.1 million | # of loans, guaranteed loans, and grants to support housing
150,000 | Families helped to buy, refinance or repair their homes
11,931 | Loans and grants to support community facilities
10,623 | Loans and grants to support rural water and wastewater services
2,491 | projects to support broadband and rural electric services
$1.8 Billion | Funds provided for services such as schools, hospitals, day care centers, first-responder vehicles and equipment and other needs.
24,000 | projects to support rural businesses and entrepreneurship.
12,500 | new rural businesses started with some form or backing or guarantee
$1.5 billion | in loans, loan guarantees and grants to small businesses
No comments:
Post a Comment