• BUSINESS AND INDUSTRY (B&I) GUARANTEED LOANS
• INTERMEDIARY RELENDING PROGRAM (IRP)
• RURAL BUSINESS ENTERPRISE GRANT (RBEG)
• RURAL BUSINESS OPPORTUNITY GRANT (RBOG)
• FUNDING AVAILABILITY

BUSINESS AND INDUSTRY (B&I) GUARANTEED LOANS
The guaranteed B&I program provides financial assistance to rural businesses by offering guarantees to lenders as an incentive to extend credit in rural areas. Loan funds may be used to support the establishment or expansion of businesses, for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. Businesses involved in forestry, aquaculture, growing of hydroponics and mushrooms and commercial nurseries are eligible for assistance in addition to businesses involved in producing value-added products. The primary purpose is to create and maintain employment and improve the economic climate in rural communities.

INTERMEDIARY RELENDING PROGRAM (IRP)
This program allows an eligible intermediary organization to borrow funds directly from Rural Development at a one percent interest rate for the purpose of establishing or augmenting a revolving fund. The revolving fund is used to provide a source of funds to businesses located in rural areas for business and community development purposes that would not otherwise qualify for commercial loans.

Loan funds received from an intermediary may be used by the recipient to acquire or start up businesses; purchase and develop land to produce value-added products; purchase equipment, machinery or supplies; working capital; for commercial nurseries, forestry, livestock and poultry processing; or aquaculture and the growing of hydroponics and mushrooms. Other agricultural production is not allowed. Agricultural producers who convert crops into value-added products are eligible for IRP assistance for the value-added portion.

RURAL BUSINESS ENTERPRISE GRANT (RBEG)
RBEGs are used to finance and facilitate development of private business enterprises. The purpose of an RBEG is to assist public bodies and non-profit corporations finance and facilitate development of small and emerging private business enterprises located in areas outside the boundary of a city of 50,000 or more and its immediate adjacent urbanized area. RBEGs are awarded on a competing basis.

RURAL BUSINESS OPPORTUNITY GRANT (RBOG)
Rural Business Opportunity Grant funds provide for technical assistance, training, and planning activities that improve economic conditions in rural areas. Applicants must be located in rural areas (this includes all areas other than cities of more than 10,000 people). Nonprofit corporations and public bodies are eligible. Funding is available to be distributed on a national competition basis. The RBOG program can be used to promote sustainable economic development in rural communities with exceptional needs. This is accomplished by making grants to organizations to provide for economic development planning, technical assistance, or training.

FUNDING AVAILABILITY

• B&I Guaranteed Loans:
  • $1.152 Billion Nationwide
  • $7.5 Million for the State of Hawaii
  • $7.5 Million for Western Pacific
• IRP Loans:
  • $38 Million Nationwide
• RBEG:
  • $41 Million Nationwide
  • $54,000 for the State of Hawaii
  • $50,000 for Western Pacific
• RBOG:
  • $5.1 Million Nationwide

  FOR ADDITIONAL INFORMATION, PLEASE CONTACT:

  USDA, Rural Development        Steven R. Chapman - Program Director
  Hawaii State Office            Telephone: (808) 933-8312/8317/8318
  ATTN:  Rural Business Service  FAX:       (808) 933-8327
  Room 311, Federal Building     E-Mail: steven.chapman@hi.usda.gov
  154 Waianuenue Avenue               
  Hilo, HI  96720
  

  
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  Revised on: 3/15/02