COLORADO
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COLORADO |
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Rural Development
Business Programs
Select resources to find additional information on Rural Business
Business and Industry Guaranteed Loan
Purpose: What is the Program's Goal? To provide an incentive for business lending which will save and create jobs in rural areas.
Program Type: How does it work? USDA Rural Development guarantees business loans made by banks.
Eligible Applicants: Who can apply? Banks and other business leaders who can make loans to rural businesses.
Eligible Areas: Unincorporated rural areas, cities, and towns with populations less than 50,000.
Authorized Purposes: What can funds be used for? Guaranteed loans can be used for real estate, equipment, working capital, and refinancing - for non farm businesses.
Typical Amount of Assistance: $300,000 - $10,000,000.
Rates & Terms (rates subject to change): Negotiated between business and lender. Fixed or variable rates, typically near prime rate (no balloon terms).
Keys to Success: Lender driven; there must be a bank willing to make the loan. USDA Rural Development only guarantees the loan. Business must have strong equity and collateral.
When to Apply: Year round.
Who to Contact: Local banks, and business lenders. Program is administered through the Business & Community Program.
Rural Business Opportunity Grant
Purpose: What is the Program's Goal? To promote sustainable economic development.
Program Type: How does it work? USDA Rural Development makes grants to support local and regional economic development efforts.
Eligible Applicants: Who can apply? Public bodies, Indian Tribes, non profit corporations, and cooperatives whose membership is comprised primarily of rural residents.
Eligible Areas: Unincorporated rural areas, cities, and towns with populations less than 10,000.
Authorized Purposes: What can funds be used for? To develop project feasibility studies, technical assistance, or for business and economic development, planning, and training.
Typical Amount of Assistance: Up to $50,000.
Keys to Success: Rural communities with exceptional economic needs. Applicant must have sufficient expertise in activities proposed.
When to Apply: Year round.
Who to Contact: Program is administered through the Business & Community Program.
Value Added Agricultural Product - Market Development Grants
Purpose: What is the Program's Goal? To help producers (farmers and ranchers) expand the customer base for their products or commodities and ensure that a greater portion of their revenues derived from the value-added activity goes back to the producer.
Eligible Applicants: Who can apply? Independent producers, farmer or rancher cooperatives, agricultural producer groups, or a majority-controlled, producer based business ventures. Here, producers must have more than 50% ownership and control.
Eligible Uses: Funds can be used for planning (feasibility studies, business plans) purposes or to establish working capital accounts. Processing of agricultural products, product segregation, marketing of a product produced in a manner that enhances its value, and agricultural production for renewable energy are all eligible activities under this program.
Typical Amount of Assistance: $500,000 maximum grant amount. Matching funds must be equal to the grant amount.
Application Filing Procedures: Funding for this program is done through a Notice of Funding Available (NOFA) and specific timelines must be met to be considered for funding.
Who to Contact: Program is administered through the Business & Community Program in the Lakewood in the State Office.
Rural Business Enterprise Grant
Purpose: What is the Program's Goal? To finance and facilitate the development of community economic programs which will assist small and emerging private business enterprises in rural areas.
Program Type: How does it work? USDA Rural Development makes grants to support local and regional economic development programs that will support non-farm businesses.
Eligible Applicants: Who can apply? Non-profit corporations, Indian Tribes, and public bodies (e.g., cities or counties).
Eligible Areas: Unincorporated rural areas, cities, and towns with populations less than 50,000.
Authorized Purposes: What can funds be used for? The grant can be used for a revolving loan fund, technical assistance, or other business development which will support small and emerging private business enterprise.
Typical Amount of Assistance: Less than $50,000.
When to Apply: Year round.
Who to Contact: Program is administered through the Business & Community Program.
Rural Development Economic Development Loan and Grant
Purpose: What is the Program's Goal? Promote specific community or business development projects that will improve the economic condition of rural areas.
Program Type: How does it work? Loan: USDA Rural Development makes loans to utility cooperatives, which are re-loaned to a local business.
Grant: USDA Rural Development makes grants to utility cooperatives to support economic development projects.Eligible Applicants: Who can apply? Electric and telephone cooperatives which were financed by Rural Development Utilities Service.
Eligible Areas: Unincorporated rural areas, cities, and towns with populations less than 2,500.
Authorized Purposes: What can funds be used for? Cooperative re-lend funds to businesses, non-profits, and public bodies for business and community development programs. Grant: Grants are used to set up a revolving loan fund. Loans can be made to public or private entities.
Typical Amount of Assistance: Program funds vary from year to year.
Rates & Terms (rates subject to change): Loan: 0% for 10 years.
Key to Success: Requires a community-oriented utility cooperative that is willing to apply on the project's behalf.
When to Apply: Year round.
Who to Contact: Program is administered through the Business & Community Program.
Intermediary Relending Program
Rural Development's Intermediary Relending Program is comprised of two elements, the intermediary and the ultimate recipient. The intermediary is a private non-profit corporation, profit, public agency, cooperative, or Indian tribe who borrows money from Rural Development. The intermediary then makes loans to various ultimate recipients from the funds they received from Rural Development.
Purpose: What is the Program's Goal? Capitalize locally run revolving loan programs for small businesses unable to obtain adequate bank financing.
Program Type: How does it work? USDA Rural Development loans money to a local revolving loan fund for re-lending to non-farm businesses.
Eligible Applicants: Who can apply? Non-profit corporations, Indian Tribes, public bodies (e.g., towns), and cooperatives who will make loans to rural businesses.
Eligible Areas: Unincorporated rural areas, cities, and towns with populations less than 25,000.
Authorized Purposes: What can funds be used for? The loans must be used to set up a loan program to make business loans for real estate, equipment, working capital, and refinancing - for non farm businesses.
Typical Amount of Assistance: Assistance amount varies.
Rates & Terms (rates subject to change): 1% for 30 years.
Key to Success: Funding is limited and therefore used to serve the neediest areas.
When to Apply: Year round.
Who to Contact: Program is administered through the Business & Community Program.
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