THE FARM SECURITY AND RURAL INVESTMENT ACT OF 2002
Rural Development Provisions
Eligibility of Rural Empowerment Zones and Rural Enterprise Communities for Direct and Guaranteed Loans for Essential Community Facilities - Section 6001
Makes rural Empowerment Zones and Enterprise Communities eligible for Community Facilities funds.
Water or Waste Disposal Grants - Section 6002
Removes the current authorization level of $590 million for water and waste disposal grants. Allows the Secretary to make grants to qualified private nonprofit entities to capitalize revolving funds to finance predevelopment costs and small loans for replacement of equipment, small-scale extensions, etc., for water and wastewater projects. Extends the program but no funds are provided.
Rural Business Opportunity Grants - Section 6003
Extends the program but no funds are provided.
Children's Day Care Facilities - Section 6004
Creates a 10 percent set-aside for child care facilities under the Community Facilities program to remain available until April 1 of each fiscal year.
Rural Water and Wastewater Circuit Rider Program - Section 6005
Allows the program to proceed under contract this year but provides no funding.
Multijurisdictional Regional Planning Organizations - Section 6006
Establishes a program to provide grants to multijurisdictional regional planning and development organizations to pay the Federal share of the cost of providing assistance to local governments to improve the infrastructure, services, and business development capabilities of local governments and local economic development organizations. Extends the program but no funds are provided.
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Loan Guarantees for Certain Rural Development Loans - Section 6007
Allows the Secretary to guarantee loans for projects financed in part by the issuance of tax- exempt bonds, in the event the IRS Code is modified.
Tribal College and University Essential Community Facilities - Section 6008
Establishes a CF grant program for Tribal Colleges and Universities, but provides no funding.
Emergency and Imminent Community Water Assistance Grant Program - Section 6009
Revises the current program to allow funding for imminent threats to water systems. Extends the program but no funds are provided.
Water and Waste Facility Grants for Native American Tribes - Section 6010
Authorizes $30 million per year in grants, $30 million per year in loans, and $20 million per year in grants to benefit Indian tribes.
Grants for Water Systems for Rural and Native Villages in Alaska - Section 6011
Extends the program.
Grants to Nonprofit Organizations to Finance the Construction, Refurbishing, and Servicing of Individually-Owned Household Water Well Systems in Rural Areas for Individuals with Low or Moderate Incomes - Section 6012
Authorizes a grant to an intermediary to assist individuals to obtain water well system funding. The intermediary could make loans up to $8,000 each at a rate of 1 percent for up to 20 years. Extends the program but no funds are provided.
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Loans and Loan Guarantees for Renewable Energy Systems - Section 6013
Makes other renewable energy systems, including wind energy systems and anaerobic digestors for the purpose of energy generation, eligible under the B&I program.
Rural Business Enterprise Grants - Section 6014
Expands eligibility under the Rural Business Enterprise Grants program to make certain small and emerging private business enterprises eligible.
Rural Cooperative Development Grants - Section 6015
Extends the current program and decreases the amount of non-federal financial support to 5 percent for 1994 institutions. The minimum matching funds level remains at 25 percent for all other eligible applicants.
Federal Register Notice--"Announcing Rural Cooperative Development Grant Application Deadlines and Funding Levels" PDF / TEXT
Veneman Announces the Availability of $6.5 Million in Grants to Improve Economic Conditions in Rural Areas
Grants to Broadcasting Systems - Section 6016
Extends the program but no funds are provided.
Business and Industry Loan Modifications (B&I Loans) - Section 6017
- Allows the Agency to require an appraisal conducted by a specialized appraiser that uses standards that are similar to standards used in the private sector.
- Limits the one-time guarantee fee to not more than 2 percent.
Business and Industry Loan Modifications (Cooperative Stock Purchase Program) - Section 6017
- Modifies the Cooperative Stock Purchase Program to allow existing cooperatives to be eligible for the program in addition to start-up cooperatives.
- Allows start-up cooperatives to contract for services to process agricultural commodities during its first 5 years of operation in order to provide adequate time for planning and constructing the cooperative's processing facility.
- Allows use of financial information that is generally required by commercial agriculture lenders.
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Business and Industry Loan Modifications (Loans to Cooperatives) - Section 6017
- Allows loans to cooperatives for a facility that is not located in a rural area if the primary purpose of the loan is to provide value-added processing to agricultural producers located within 80 miles of the facility, the applicant demonstrates that the primary benefit of the loan will provide employment for residents of a rural area, and the total amount of these guaranteed loans in any fiscal year does not exceed 10 percent of the total amount guaranteed for the fiscal year.
- Allows the Agency to consider the market value of brand names, patents, or trademarks of the cooperative.
- Allows loans to cooperatives headquartered in a metropolitan area if funds are used for a venture located in a rural area.
- Allows the refinancing of existing loans with a lender if the cooperative is current and performing with respect to the existing loan and there is adequate security for the refinanced loan.
- Allows loans to cooperatives for projects located in a rural area and that provides for the value-added processing of agricultural commodities. These loans may be no more than $40 million each.
Use of Rural Development Loans and Grants for Other Purposes - Section 6018
Allows a borrower or grantee under the Rural Community Advancement Program (RCAP) to use either real property or personal property purchased with loan or grant funds from those Rural Development programs under RCAP or proceeds from the sale of property purchased to be used for another project that would be eligible under any of the RCAP programs. The change will require a modification to all RCAP programs.
Simplified Application Forms for Loan Guarantees - Section 6019
This provision allows use of a short, simplified, application form for B&I loan guarantees of $400,000 or less. It gives the Agency the option to increase this limit to $600,000 beginning in FY 2004 if there is not a significant increased risk of default on the loan. Also requires the Secretary to develop a way to expedite the processing of water or waste disposal grant, direct loan, and loan guarantee applications for projects under $300,000.
Definition of Rural and Rural Area - Section 6020
Provides a general definition of rural area for future Rural Development programs. For Business Programs (B&I guaranteed and direct loans, RBEGs, and RBOGs) the terms ‘rural' and ‘rural area' means any area other than a city or town that has a population of greater than 50,000 inhabitants (including the urbanized areas contiguous and adjacent to such a city or town). For Water and Waste Disposal Programs (grants, direct and guaranteed loans) the terms ‘rural' and ‘rural areas' mean a city, town, or unincorporated area that has a population of no more than 10,000 inhabitants. For Community Facility Programs (grants, direct and guaranteed loans, extreme unemployment grants, and out-migration grants) the terms ‘rural' and ‘rural areas' mean a city, town, or unincorporated area that has a population of no more than 20,000 inhabitants. Also provides definitions for Multijurisdictional Regional Planning Organizations, National Rural Development Partnership, and the Rural Business Investment Program.
National Rural Development Partnership - Section 6021
Authorizes the National Rural Development Partnership (NRDP). Definitions, duties, and responsibilities of various bodies of the NRDP as well as the Federal government are spelled out. It codifies many current practices of the State Rural Development Councils, adds significant new duties for the SRDCs and the national-level office, and establishes a National Rural Development Coordinating Committee (NRDCC). Provides no funding.
Federal Register Notice:--"Notice Inviting Applications for Recognition as a State Rural Development Council" TEXT / PDF / More Resources
Rural Telework - Section 6022
Creates a new program for Rural Development to pay the federal share of the cost of establishing and operating a national rural telework institute. Provides no funding.
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Historic Barn Preservation - Section 6023
Establishes a historic barn preservation program. Provides no funding.
Grants for NOAA Weather Radio Transmitters - Section 6024
Provides grants to public and nonprofit entities, and to Utilities Programs borrowers, for the Federal share of the cost of acquiring transmitters to increase weather radio coverage of rural areas. Extends the program but no funds are provided.
Grants for Training Farm Workers in New Technologies and to Train Farm Workers in Specialized Skills Necessary for Higher Value Crops - Section 6025
Establishes a grant program to train farm workers. Provides no funding.
Rural Community Advancement Program - Section 6026
Eliminates the account structure, including the national reserve account, and repeals the Rural Venture Capital Demonstration Program.
Delta Regional Authority - Section 6027
Makes changes to the existing authority but provides no funding.
Northern Great Plains Regional Authority - Section 6028
Authorizes a Northern Great Plains Regional Authority in the states of Iowa, Minnesota, Nebraska, North Dakota, and South Dakota. The Authority is expected to develop a series of comprehensive coordinated plans for the economic development of the region. The Authority may approve grants to states and public and nonprofit entities for projects including transportation and telecommunication infrastructure projects, business development and entrepreneurship, and job training. Extends the program but no funds are provided.
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Rural Business Investment Program - Section 6029
Establishes a new Rural Business Investment Program. The Secretary is required to enter into an interagency agreement with another federal agency that has expertise in operating a program of this nature. Provides $44 million in grants and such sums as necessary for the cost of guaranteeing $280 million in debentures.
Rural Business Investment Program Information
Rural Strategic Investment Program - Section 6030
Establishes a National Board on Rural America that will make planning grants and innovation grants to certified Regional Investment Boards. A National Conference on Rural America is authorized to address challenges in rural areas. Provides $100 million.
Federal Register Notice: "Solicitation of Applicants for Membership on a National Board on
Rural America" PDF* / TEXT
Candidates Solicited for National Board on Rural America
Full Funding of Pending Rural Development Loan and Grant Applications - Section 6031
Funds pending applications for water and waste disposal system grants and loans, with priority to water systems. Applications in the preapplication phase are not eligible for funding under this provision. The funds in the account established under this section will be available only after funds appropriated in the FY 2002 appropriations act for these loans and grants have been exhausted. Provides $360 million.
Veneman Announces More Than $700 Million in Economic Development Projects for Rural Communities
List of Water and Waste Disposal Projects Funded: HTML (486 Kb) / PDF (36 Kb)
Guarantees for Bonds and Notes Issued for Electrification or Telephone Purposes - Section 6101
Authorizes the Secretary to guarantee payments on bonds or notes issued by cooperatives, or other lenders organized on a not-for-profit basis, if the proceeds of the bonds or notes will be used to make loans for any electrification or telephone purpose eligible for assistance under the Rural Electrification. Provides no funding.
Guarantees for Bonds and Notes Issued for Electrification or
Expansion of 911 Access - Section 6102
Provides telephone loans to State and local governments, Indian tribes, and other public entities for facilities and equipment to expand 911 access and integrated emergency communications systems in rural areas. Provides no funding.
Enhancement of Access to Broadband Service in Rural Areas - Section 6103
Provides loans and loan guarantees at 4 percent, or market rate interest, to construct, improve, and acquire facilities and equipment to provide broadband service to rural communities with less than 20,000 residents. Provides $100 million in mandatory money - $20 million per in FYs 2002 through 2005 and $10 million per year in FYs 2006 and 2007.
Rural Broadband Loan and Loan Guarantee Program Information
Utilities Programs Rural Broadband Access Program Website (Application and Procedures Guides)
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Alternative Agricultural Research and Commercialization Corporation - Section 6201
Repeals the corporation.
Rural Electronic Commerce Extension Program - Section 6202
Establishes a program to expand and enhance electronic commerce practices and technology for use by small businesses and microenterprises in rural areas. Provides no funding.
Telemedicine and Distance Learning Services in Rural Areas - Section 6203
Extends the Distance Learning and Telemedicine program.
SEARCH Grants for Small Communities - Sections 6301 - 6304
Establishes a new grant program administered by Rural Development State Directors utilizing the advice of an independent citizens' council. Use limited to small communities with populations under 2,500 for the purpose of providing assistance with initial feasibility and environmental compliance for rural development projects. Up to $1,000,000 would be available to each State for SEARCH grants. Provides no funding.
Value-Added Agricultural Product Market Development Grants - Section 6401
Establishes a program to fund projects that help increase agricultural producers' share of the food and agricultural system. The Secretary is expected to consider applications for projects from a variety of agricultural sectors such as renewable energy, wineries, high value products from major crops, agri-marketing ventures, and community supported agricultural projects. A portion of the funds will be to fund an Agricultural Innovation Center Demonstration Program. Provides $40 million per year in FYs 2002 through 2007.
Federal Register Notice--"Announcement of Value-Added Producer Grant Application Deadlines and Funding Levels" PDF / TEXT
Veneman Announces the Availability of $13.2 Million in Grants to Expand Value-Added Agricultural Business Ventures
Federal Register Notice: "Notice Inviting Applications for the Value-Added Producer Grants Program" PDF / TEXT
Federal Register Notice: "Value-Added Producer Grants and Ag Innovation Centers Proposed Rule" PDF* / TEXT
Notice of Funding for the Value-Added Ag Product Market Development Grant Program
Veneman Makes $33 Million in Grants Available to Promote Energy, Value-Added Ventures
Agriculture Innovation Center Demonstration Program - Section 6402
Establishes “Agricultural Innovation Centers” to provide agricultural producers with technical assistance and applied research that will help their businesses become more effective in marketing value-added agricultural commodities. Not more than 5 centers would be established in the first year of the program; and not more than 10 in the second year. Provides up to $15 million - $3 million in FY 2002 and $6 million per year in FYs 2003 and 2004.
USDA Awards $10 Million for Agricultural Innovation Centers
Federal Register Notice: "Invitation to Apply for Agriculture Innovation Center Demonstration Program Grants" PDF / TEXT
Federal Register Notice: "Notice Inviting Applications for a University Value-Added Research Grant" PDF / TEXT
Transcript of Agriculture Innovation Center Demonstration Program Public Meeting (PDF file)
USDA to Hold Public Meeting on Agricultural Innovation Center Demonstration Program
Federal Register Notice: "Notice of a Public Meeting on the Agriculture Innovation Center
Demonstration Program" PDF / TEXT
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Fund for Rural America - Section 6403
Repeals the Fund.
Rural Local Television Broadcast Signal Loan Guarantees - Section 6404
Provides loan guarantees to provide access to signals of local television stations. Provides $80 million available upon enactment through December 31, 2006.
Rural Firefighters and Emergency Personnel Grant Program - Section 6405
Establishes a grant program to provide scholarships to local government units to train firefighters and emergency medical personnel in firefighting, emergency medical practices, and responding to accidents involving hazardous material and bio-agents. Funds can also be used to establish training facilities. Provides $10 million per year in FYs 2003 through 2007.
Sense of Congress on Rural Policy Coordination - Section 6406
Creates an intergovernmental rural policy working group.
Energy Audit and Renewable Energy Development Program - Section 9005
Establishes a competitive grant program to eligible entities to administer energy audits and renewable energy development assessments for farmers, ranchers, and rural small business. Provides no funding.
Renewable Energy Systems and Energy Efficiency Improvements - Section 9006
Establishes a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency. Provides $23 million per year in FYs 2003 through 2007.
Renewable Energy and Energy Efficiency Program Information
Business Programs Renewable Energy Site (Technical Resources)
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