Frequently Asked Questions

All interested persons are strongly encouraged to contact the contact the Rural Development Office in their state for information about the program. In the event that you do need to speak to someone from the National Office staff, please use the following contact information:

Gail Thuner
Management and Program Analyst
(202) 690-2426

Amy Cavanaugh
Loan Specialist
(202) 260-1506

All e-mail inquiries should be sent to: cpgrants@usda.gov

Application Process
Matching Funds
Application Eligibility
Activity Eligibility
Other Eligibility


Application Process

Q. When can I submit an application?

A. Applications for the 2005 funding cycle are due in the National Office by July 1, 2005.

Matching Funds

Q. What is the matching funds requirement for this program?

A. Matching funds are required. Applicants must provide at least 25% (5% for 1994 Institutions) of total project costs through matching funds. Applicants must verify in their applications that matching funds are available for the time period of the grant. Unless provided by other authorizing legislation, other Federal grant funds cannot be used as matching funds. Matching funds must be spent at a rate proportional to the rate at which grant funds are expended. Matching funds must be provided by either the applicant or by a third party in the form of cash or in-kind contributions. Matching funds must be spend on eligible expenses and must be from eligible sources if they are in-kind contributions.

Q. Can a line of credit from a bank be used as matching funds?

A. Yes, a line of credit from a bank can be used as matching funds. The line of credit must be verified by a signed letter from the bank indicating the amount of credit available, the time period during which the funds will be available, and the purpose for which funds may be used.

Q. Can expected income (e.g. membership dues) during the time of the grant be used as matching funds?

A. No, expected income (also called program income) cannot be used as matching funds at the time of application. The applicant must demonstrate that matching funds are available at the time of application. However, if the grant is awarded, the recipient may substitute program income for other sources of matching funds with the approval of the Agency.

Applicant Eligibility

Q. Who is eligible to apply for grants?

A. Grants may be made to non-profit corporations and institutions of higher education. Grants may not be made to Public bodies.

Activity Eligibility

Q. What are examples of eligible activities?

A. Examples of eligible activities include providing board of director training, conducting feasibility studies, and developing business plans. Centers should focus on cooperative development, but may also assist other types of rural businesses.

Other Eligibility

Q. Do Center projects have to occur in a rural area in order to be eligible?

A. Yes, all projects completed with grant and/or matching funds must occur in rural areas.