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| POLICY: |
Support the development of small and emerging business enterprises in rural areas. |
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DEFINITION:
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Small and Emerging Private Business Enterprise- Any private business which will employ 50 or fewer new employees as a result of the RBEG
- Must meet certain limitations on gross revenues
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ELIGIBILITY: |
Public bodies and non profit entities including Federally recognized Indian Tribe groups in rural areas. |
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POPULATION
LIMIT: |
Communities under 50,000 population. Priority is given to applications from communities of 25,000 and less. |
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PRIORITY
DETERMINATION: |
The Project Selection Criteria form (Attachment 1, Section C of Instruction 1942-G) is used to calculate the priority points. Priority points are assigned for the following criteria: population, economic conditions, experience, commitment of nonfederal funds, jobs created, etc. |
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PROJECT
AUTHORIZATION: |
THREE TYPES OF PROJECTS AUTHORIZED-
Infrastructure/Construction Projects
- Roads, Streets, utilities, parking lots, elevated storage tanks, etc.
- Technical Assistance
- For private business enterprise project
- Scope of work would include a budget which includes salaries, fringe benefits, consultant cost, indirect cost and other appropriate direct cost for the project
- Specify specific purpose of technical assistance
- Time frames of project
- Scope of work will be used to measure performance
- Revolving Loan Fund
- Providing financial assistance to third parties through a loan
- Must submit plan which will include:
- Planned projects to be financed
- Sources of all non-RBEG funds
- Purposes of loans
- Number of jobs created or saved
- Project priority and length of time involved in completion of each project
- Information which will establish need for revolving loan fund
- Financial statements which will demonstrate the financial ability of the applicant to administer the revolving loan fund
- Details on applicant's experience in operating a revolving fund
- Rates, terms and charges on loans must be reasonable and for authorized purposes
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ELIGIBLE
GRANT
PURPOSES:
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Grant funds may be used to finance and/or develop small and emerging private business enterprises in rural areas including, but not limited to, the following:- Acquisition and development of land, easements and rights-of-way
- Construction, conversion, enlargement, repairs or modernization of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities and pollution control and abatement facilities
- Loans for startup operating costs and working capital
- Technical assistance for private business enterprises
- Reasonable fees and charges for professional services necessary for the planning and development of the project, including packaging. Services must be provided by individuals licensed in accordance with appropriate State accreditation associations
- Refinancing of debts exclusive of interest incurred by or on behalf of an association before an application for a grant when all of the following exist:
- The debts were incurred for the facility or part thereof or service to be installed or improved with the grant, and
- Arrangements cannot be made with the creditors to extend or modify the terms of the existing debt
- Providing financial assistance to third parties through a loan
- Training, when necessary, in connection with technical assistance
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INELIGIBLE
GRANT
PURPOSES:
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Grant funds will not be used:- To produce agriculture products through growing, cultivation and harvesting either directly or through horizontally integrated livestock operations except for commercial nurseries, timber operations or limited agricultural production related to technical assistance projects
- To finance comprehensive area wide-type planning. This does not preclude the use of grant funds for planning for a given project
- For loans by grantees when the rates, terms and charges for those loans are not reasonable or would be for purposes not eligible under paragraph 1942.306 of Instruction 1942-G
- For programs operated by cable television systems
- To fund a part of a project which is dependent on other funding unless there is a firm commitment of the other funding to ensure completion of the project
At least 51% of the outstanding interest in the project has membership or is owned by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence.
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PREAPPLICATION: |
Form SF-424.1 is used for non-construction projects and Form SF-424.2 is used when construction will be involved. A narrative describing the proposed project should accompany the Preapplication form. |
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