Financing Programs

for

Community and Economic Development

Available in New York State

 

Fiscal Year 2005

New York Office: The Galleries of Syracuse, 441 South Salina Street, Suite 357, Syracuse, New York 13202 Phone: (315) 477-6400

Fax: (315) 477-6438 TDD: (315) 477-6447 www.rurdev.usda.gov/ny

The USDA/Rural Development prohibits discrimination in its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or familial status. (Not all prohibited bases apply to all programs). Persons with disabilities who require alternative means for communication of program information (Braille, large print, audio tape, etc.) should contact the USDA Office of Communications at (202) 720-2600 (voice and TTD). USDA is an equal opportunity lender, provider and employer. Complaints of discrimination may be filed with: USDA, Director, Office of Civil Rights, Washington, DC 20250-9410, Ph.(202)720-5964 (voice and TDD).

Rural Housing Program (RHP)

Program

Objective

Applicant

Uses

Population

Loan/

Grant

Terms/Conditions

Single Family Home Ownership Loans Finance safe, well-built, affordable homes for rural Americans Families and individuals

apply to local RD office

Buy, build, improve, repair or rehabilitate rural homes as the applicant’s permanent residence Rural areas and populations of 10,000 or less Direct loan Finance up to 100% of market value. Loans typically amortized over 33 years. Applicant may be eligible for payment assistance (subsidy) to reduce monthly payment
Single Family Home Repair Loans and Grants To assist very-low income homeowners repair their homes Families and individuals

who currently own their home apply to local RD office

Repairs to improve or modernize a home, remove health or safety hazards or to make property accessible for household members with disabilities Rural areas and populations of 10,000 or less Direct loan

Direct grant

Maximum loan term 20 years @ 1% fixed interest rate. Outstanding balance on loan(s) not to exceed $20,000. Grants available to applicants age 62 years or older to remove health or safety hazards or make property accessible to household members with disabilities. Lifetime grant assistance $7500
Self-Help Housing

Loans and Grants

Single family homes built by a group of program eligible applicants using RD financing. Project development and construction guidance provided by a participating non-profit grantee Loan applications are packaged and developed by the grantee organization – referred to RD for final underwriting and approval.

Grant application information provided by local RD office

Loan made to individuals and/or families for site, material and skilled labor

Grants provided to non-profit organizations to develop self-help project, provide technical assistance, counseling and construction supervision.

Rural areas and

populations of

10,000 or less

Direct loan

Direct grant

Loan: Same as Single Family Home Ownership guidelines above; however, substantial portion of labor involved with constructing home provided by applicant.

Grant: Organization must have technical and supervisory experience to carry out objectives of self help project

Single Family Home

Ownership Loan Guarantees

 

Assist eligible applicants to purchase homes in rural areas by issuing loan note guarantees to private lenders Families and individuals

apply to approved lenders.

Loans may be made to construct new or purchase existing homes in rural areas. Rural areas and populations of 10,000 or less Loan guarantee 30 year, fixed rate. Interest negotiated between lender and borrower. Loans to 100 percent of market value. Guaranteed fee of 1.75% can be financed, based on 100% LTV. No PMI, no limit on seller concessions or property value
Rental Housing for Families and Elderly

Direct Loans and Loan Guarantees

Safe, well-built affordable rental housing for rural Americans Individuals, profit and non-profit organizations. For guarantees, apply to intermediary; for direct, apply to RD State Office New construction or substantial rehabilitation of rental housing Rural areas and populations of 10,000 or less Direct loan or

loan guarantee

Up to 100% of market value (non-profits) ; 97% (for-profits)

Up to 30 years with 50- year amortization.

Housing Preservation Grants Repair and rehabilitate housing owned or occupied by low income rural residents Public bodies and non-profit corporations apply to RD Operate a program which finances the repair and rehabilitation activities Rural areas and populations of 10,000 or less Grant Grant Agreement Conditions
Community Facilities Programs Provide essential community facilities for rural communities Public bodies and non-profit corporations. Guaranteed: apply to intermediary. Direct and grant: apply to local RD office. Fire and rescue, public safety, public buildings, schools, libraries, museums, day care, health services. Not for recreation activities (except Guarantee) Rural areas and populations of 20,000 or less-Direct; 20,000 or less-Guarantee Direct loan or

loan guarantee

Grant

Up to 100% of market value

Up to 40 years or life of security

Farm Labor Housing Safe, well-built affordable rental housing for farm workers Individuals, profit and non-profit organizations apply to RD New construction or substantial rehabilitation of rental housing Rural areas and populations of 20,000 or less Direct loan and grant Up to 100% of market value

Up to 33 years @ 1% interest

 

 

Rural Business - Cooperative Development Program (RBP)

Program

Objective

Applicant

Uses

Population

Loan/

Grant

Terms/Conditions

Business and Industry Loan Guarantees (B&I) Create jobs and stimulate rural economies by providing financial backing for rural businesses Business applies through Federal or State Chartered banks, credit unions, savings & loan associations or other approved lenders. Most legal business purposes. Acquisition, start-up and expansion of businesses that create rural employment. Cannot finance farms, golf courses, gambling and certain other businesses. All areas except cities of more than 50,000 and their immediately adjacent urban areas.*

Loan guarantee

Lender and borrower negotiate terms within maximum terms allowed by USDA. Interest rates set by lenders, may be fixed or variable. Applications must be filed through an eligible lender. Preapplications are recommended.
Rural Business Enterprise Grants

(RBEG)

Finance and facilitate the development of small and emerging private business enterprises Public bodies; nonprofit corporations apply to RD office in their area. Public bodies include Federally recognized Indian tribal groups Buy and develop land, construct buildings, plants, roads, utility and service extensions, purchase and own equipment. Provide technical assistance to small businesses. Operate revolving loan funds for small businesses All areas except cities of more than 50,000 and their immediately adjacent urban areas.*

Grant

When grant funds are used for revolving loan fund (RLF) the intermediary makes loans to businesses from its RLF on terms consistent with security offered
Rural Business Opportunity Grants

(RBOG)

Promote sustainable economic activity in rural communities Public bodies, nonprofit corporations, Federally recognized Indian tribal groups and cooperatives Identify & analyze business opportunities, provide technical assistance, establish business support centers, conduct economic development planning & leadership training All areas except cities of more than 50,000 and their immediately adjacent urban areas.*

Grant

Up to 100% of eligible project costs for projects of 2 years duration or less. Grantee establishes an evaluation method in the application. The Agency will assess the instructional value to be shared with other communities.
Intermediary Relending Program Loans (IRP) Finance business facilities and community development projects in rural areas Public bodies, nonprofit corporations, cooperatives, Federally recognized Indian tribal groups, apply to area RD office. Community development projects, establishment or expansion of businesses, creation or saving rural jobs Rural areas and places with populations of less than 25,000

Direct loan

USDA loan to intermediary at 1% interest for 30 years. The intermediary makes loans to businesses from its revolving loan fund on terms consistent with security offered
Value-added Agricultural Product Market Development Grants (VAPG) Help eligible applicants to develop business plans for viable marketing opportunities and develop strategies to create marketing opportunities Individual farmers, producer owned corporations and partnerships, farmer cooperatives, agricultural producer groups, majority owned producer-based business ventures and steering committees in the process of organizing a value-added venture Planning grants for feasibility studies, marketing plans, business plans, etc.

Working capital grants to pay organizational and start-up costs, legal fees, and operating expenses of the business

No restrictions

Grant

Grants of up to $500,000, applicant must provide 100% matching funds, cannot be used for real estate or equipment. Working capital grants only available if the applicant shows that both an independently prepared feasibility study and a business plan for the proposed venture have been completed.
Renewable Energy – Energy Efficiency Grants (REEG) Funding assistance to purchase renewable energy systems and/or make energy efficiency improvements Agricultural producers, rural small businesses (sole proprietorships, partnerships, corporations, cooperatives) Purchase equipment, construction and/or installation of renewable systems, energy audits, professional service fees, permit fees, retrofitting. Not for research and development. All areas except cities of more than 50,000 and their immediately adjacent urban areas.*

Grant; loans and loan guarantees authorized but not yet implemented

Grant up to $500,000 to fund no more than 25% of total cost of renewable energy system; grant up to $250,000 to fund no more than 25% of total cost of energy efficiency improvements. Project must demonstrate financial need, technical & economic viability.
Rural Economic Development Loans and Grants Finance economic development and job creation in rural areas Electric Cooperatives & Rural Telephone Companies with RUS or Rural Telephone Bank outstanding loans, apply to local RD office. Business startup or expansion projects that create rural jobs Rural areas and places with populations of 2,500 or less

Direct loan

The intermediary, electric cooperatives or rural telephone company, makes loans to profit or non-profit businesses and public bodies for rural economic development and/or job creation projects.
Direct Loans and Grants - Apply to Rural Development

Loan Guarantees - Apply to Intermediary (approved banks, credit unions, etc.)

* - All Programs with a 50,000 population limit can access http://www.ers.usda.gov/data/LoanLookup/ to check locations eligibility via zip code.

Rural Utilities Program (RUP)

Program

Objective

Applicant

Uses

Population

Loan/

Grant

Terms/Conditions

Water and Waste Disposal Loans and Grants  

Providing infrastructure for rural areas

Public entities and non-profit corporations apply to local RD office Build, repair, and other related costs to improve public water systems and waste collection and treatment systems  

Rural areas and places with up to 10,000 population

Direct loan and grant  

Interest rates are set quarterly based on an index of current market yields for municipal obligations. Repayment maximum: 40 years. Grant funds may be available

Water and Waste Disposal Loan Guarantees

 

 

Providing infrastructure for rural areas Eligible lenders obtain guarantee for loans made and serviced by them. Lenders should contact

local RD office.

Construct, repair, modify, expand, and other related costs to improve water supply and distribution systems and waste collection and treatment systems Rural areas and places with up to 10,000 population Loan guarantee Not eligible for grant
Solid Waste Management Grants Provide technical assistance and/or training to help communities reduce the solid waste stream Non-profit organizations and public bodies. Contact RD State Office in Syracuse.

 

Provide technical assistance and training to reduce pollution of water resources and improve management of solid waste facilities, reduction of solid waste streams Rural areas and places with up to 10,000 population Grant Projects funded based on selection at National Level
Electric and Telecommunication

 

 

 

 

Provide financial aid through direct and guaranteed loans Non-profit and cooperative associations, public bodies and other utilities. Contact USDA-RUS-Electric Staff Div., Stop 1569, 1400 Independence Ave. SW, Washington, DC 20250-1569 Generation, bulk transmission facilities and distribution of electric power. Enhance 911 emergency service, digital switching equipment, fiber optic cable Rural areas Direct loan or loan guarantee Interest rates are established in accordance with 7CFR 17145
Distance Learning and Telemedicine Development and deployment of advanced telecommunication services throughout rural America Incorporated entities, including municipal corporations, for-profit and not-for-profit groups, which operate or will operate an educational institution, including a regional educational laboratory, library, hospital, medical center, medical clinic or any rural community facility. Rural schools, libraries, health care clinics and other organizations that operate educational or health care facilities.

Application submitted to the RD National Office, Washington, DC through NY RD State RUS Office

Equipment for classrooms: cameras, video monitors computers and LAN; and for physician consultation, radiology, x-ray scanners and digital microscopes Rural areas Direct loan and/or grant Matching funds are required

Summary of Program Purposes

 

 

LAND &

MACH. &

WORKING

INFRA

TRAIN/

BUILDING

EQUIP.

CAPITAL

STRUCT.

TECH.

RURAL HOUSING PROGRAM - SINGLE FAMILY
Section 502 - Direct loan

x

Section 504 - Loan/grant

x

Section 523 Self Help Technical Assistance Grants

x

Section 502 - Guaranteed loan

x

RURAL HOUSING PROGRAM - MULTI- FAMILY
Rural rental housing - Guaranteed loan

x

x

Rural rental housing - Direct loan

x

x

Farm labor housing - Loan/grant

x

x

Housing preservation -Grant

x

x

x

x

x

  RURAL HOUSING PROGRAM – COMMUNITY FACILITIES          
Community facilities - Direct loan/grant

x

x

x

x

Community facilities - Guaranteed loan

x

x

x

x

             
  RURAL BUSINESS-COOPERATIVE PROGRAM          
Business & Industry - Guaranteed loan

x

x

x

x

Rural Business Enterprise Grant

x

x

x

x

x

Rural Business Opportunity Grant

x

x

x

x

x

Intermediary Relending - Loan

x

x

x

x

Value-Added Agricultural Product Market Development Grant

x

x

Renewable Energy & Energy Efficiency Improvements Grant

x

x

x

  Rural Economic Development Loan and Grant

x

x

x

x

x

             
  RURAL UTILITIES PROGRAM          
Water and Wastewater - loan/grant

x

x

x

x

Water and Wastewater - Guaranteed loan

x

x

x

x

Solid Waste Management Grant

x

Distance Learning/Telemedicine, Telecomm loan/grant

x

x

 

USDA Rural Development

New York Offices

USDA RD New York State Office

The Galleries of Syracuse

441 S. Salina Street, Suite 357

Syracuse, NY 13202-2541

315-477-6400

315-477-6438 (fax)

Note: Home County of each area office is underlined.

Batavia Area Office

29 Liberty Street, Suite 2

Batavia, NY 14020-3294

585-343-9167 ext. 2200

585-344-4662 (fax)

Counties served: Genesee, Monroe, Niagara, Orleans, Wyoming

Email: rdbatavia@ny.usda.gov

Bath Area Office

415 W. Morris Street

Bath, NY 14810-1038

607-776-7398 Ext. 4

607-776-7487 (fax)

Counties served: Steuben, Allegany, Livingston

Email: rdbath@ny.usda.gov

     
Binghamton Area Office

1163 Upper Front Street

Binghamton, NY 13905

607-723-1384 ext. 5

607-723-1015 (fax)

Counties served: Broome, Chenango, Cortland, Delaware, Tioga

Email: rdbinghamton@ny.usda.gov

Canandaigua Area Office

Agricultural Service Center

3037 County Road #10

Canandaigua, NY 14424

585-394-0525 ext. 4

585-394-8367 (fax)

Counties served: Ontario, Wayne, Yates

Email: rdcanandaigua@ny.usda.gov

Canton Area Office

3 Commerce Lane

Canton, NY 13617

315-386-2401 Ext. 4

315-386-1740 (fax)

County served: St. Lawrence

Email: rdcanton@ny.usda.gov

Ellicottville Area Office

8 Martha Street, Suite B

P.O. Box 776

Ellicottville, NY 14731-0776

716-699-2375 ext. 4

716-699-5357 (fax)

Counties served: Cattaraugus, Chautauqua, Erie Email: rdellicottville@ny.usda.gov

Greenwich Area Office

2530 State Route 40

Greenwich, NY 12834-9627

518-692-9440 ext. 4

518-692-2203 (fax)

Counties served: Washington, Columbia, Hamilton, Rensselaer, Saratoga, Warren

Email: rdgreenwich@ny.usda.gov

Ithaca Area Office

903 Hanshaw Road

Ithaca, NY 14850

607-257-2737 Ext. 4

607-257-4802 (fax)

Counties served: Tompkins, Chemung, Schuyler, Seneca

Email: rdithaca@ny.usda.gov

Johnstown Area Office

113 Hales Mills Road

Johnstown, NY 12095-3741

518-762-0077 ext. 4

518-762-7020 (fax)

Counties served: Fulton, Albany, Montgomery, Otsego, Schenectady, Schoharie

Email: rdjohnstown@ny.usda.gov

Lafayette Area Office

2571 US Route 11, Suite 4

Lafayette, NY 13084-9641

315-677-3552 ext. 4

315-677-0072 (fax)

Counties served: Onondaga, Cayuga, Oswego

Email: rdlafayette@ny.usda.gov

Marcy Area Office

9025 State Route 49, Room 205

Marcy, NY 13403-2301

315-736-3316 ext. 4

315-768-5782 (fax)

Counties served: Oneida, Herkimer, Madison

Email:rdmarcy@ny.usda.gov

 

USDA Rural Development NYS List

 

Middletown Area Office

Suite 104, 1st Floor, 225 Dolson Avenue

Middletown, NY 10940-6569

845-343-1872 ext. 4

845-343-2630 (fax)

Counties served: Orange, Bronx, Dutchess, Greene, Kings, New York, Putnam, Queens, Richmond, Rockland, Sullivan, Ulster, Westchester

Email: rdmiddletown@ny.usda.gov

Plattsburgh Area Office

6064 Route 22, Suite 3

Plattsburgh, NY 12901-9601

518-561-4616 ext.2

518-563-0957 (fax)

Counties served: Clinton, Essex, Franklin

Email: rdplattsburgh@ny.usda.gov

Riverhead Area Office

423 Griffing Avenue, Suite 120

Riverhead, NY 11901-2456

631-727-5666 ext. 4

631-727-4408 (fax)

Counties served: Suffolk, Nassau

Email: rdriverhead@ny.usda.gov

     
Watertown Area Office

PO Box 838

(21168 NYS Route 232)

Watertown, NY 13601-0838

315-782-7289 ext. 4

315-788-2454 (fax)

Counties served: Jefferson, Lewis

Email: rdwatertown@ny.usda.gov

 

 

 

 

 

 

 

 

 

 

 

 

 

Comments or suggestions regarding this booklet should be referred to Scott Collins, Assistant to the State Director., USDA Rural Development, The Galleries of Syracuse, 441 S. Salina Street, Suite 357, Syracuse, NY 13202-2425 E-mail: scott.collins@ny.usda.gov (315)477-6409 fax: (315)477-6438.

Last Update 11/18/04

About Us    Business and Cooperative   Housing and Community Facilities   Utilities   Community Development and Empowerment   Offices   News/Information   Publications   Regulations   

NY USDA Rural Development Home