Rural Business and Cooperative Programs

Our business program works through partnerships with public and private community-based organizations and financial institutions to provide financial assistance, business planning and technical assistance to rural businesses.

USDA Rural Development also conducts research into rural economic issues, including those affecting rural cooperatives.

The B&I Guaranteed Loan Program is available to virtually any legally organized entity, including a cooperative, corporation, partnership, utilities programs or other profit or nonprofit entity.  Indian tribe or federally recognized tribal group, municipality, county, or other political subdivision of the state are also eligible.
 

Intermediary Relending Program - The Intermediary Relending Program loans finance business facilities and community development projects in rural areas, including cities with a population of less than 25, 000.  Business-Cooperative Programs lends these funds to intermediaries, which, in turn, provide loans to recipients who are developing business facilities or community development projects.

Eligible intermediaries include public bodies, nonprofit corporations, Indian tribes, and cooperatives.

Grant funds can pay for the acquisition and development of land and the construction of buildings, plants equipment, access streets and roads, parking areas, utility and service extensions, refinancing, and fees for professional services.

Grant funds can also pay for technical assistance and related training, startup costs and working capital, financial assistance to a third party, production of television programs targeted for rural residents, and for rural distance learning networks.

Rural Economic Development Loans and Grants are available to any Utilities Programs electric or telecommunications borrower to assist in developing rural areas from an economic standpoint, to create new job opportunities, and to help retain existing employment.

Projects should substantially benefit areas having a population of less than 2,500 residents.

By working together for their mutual benefit in cooperatives, rural residents are often able to reduce costs, obtain services that might otherwise be unavailable, and achieve greater returns for their products.

USDA Rural Development Business and Cooperative Programs helps rural residents form new cooperative businesses and improve the operations of existing cooperatives.  To accomplish this, USDA Rural Development provides technical assistance, conducts cooperative-related research, and produces information products to promote public understanding of cooperatives.

The maximum amount that can e awarded is $300,000, and recipients must provide matching funds at a level of 25 percent of total project costs unless the recipient is a 1994 Institution (which must provide matching funds at a level of 5 percent of total project costs).

Renewable Energy Grants - USDA's Renewable Energy Systems and Energy Efficiently Development Grant Program, created in Section 9006 of the 2002 Farm Bill, is a 5-year program to help farmers, ranchers and rural small businesses purchase renewable energy systems and make energy efficiency improvements. 

Value Added Producer Grants - The Value-Added Agriculture Producer Grant (VAPG) Program was created to encourage independent producers of agricultural commodities to further refine their products and increase their value to end users.

Grants may be used for planning activities and working capital for marketing value-added products.  Eligible applicants are independent producers, farmers and rancher cooperatives, agriculture producer groups, and majority-controlled producer-based business ventures.