| |
Business Programs | Cooperative Development Programs | Homeownership Programs | Rental Housing Programs | Community Facilities Programs | Water and Waste Program | Telecommunications Program | Electric Program | Management Initiatives | Resource Summaries
Program Activities supporting Goal 1: Business Programs and Cooperative Development Programs.
FY 1998 | FY 1999 | FY 2000 | FY 2001* | |
|---|---|---|---|---|
Funding (Appropriated) | ||||
Program | $1.308b | $1.368b | $1.068b* | $1.463b* |
S&E | $29,162m | $28.462m | $27.949m | ** |
FTEs (Appropriated) | 328 | 304 | 304 | ** |
* Includes $30 million in FY 2000, and $15 million in FY 2001, for Rural Empowerment Zone and Rural Enterprise Community Grants. These funds are administered by the Office of Community Development rather than RBS.
** The FY 2001 budget proposal provides for a combined S&E budget for all Rural Development agencies. The S&E and FTE figures will no longer be provided separately.
Business and Industry (B&I) Guaranteed Loans. This program finances business and industrial acquisition, construction, conversion, enlargement, repair or modernization in rural unincorporated areas and communities with a population of 50,000 or less, unless the community is part of an urbanized area that has a total population of 50,000 or more. Loan funds are used to finance the purchase and development of land, easements, rights-of-way, buildings, equipment, facilities, machinery, supplies and materials plus funds can be used to pay start-up costs and to supply working capital. Eligible applicants include individuals as well as public, private, or cooperative organizations organized for profit or nonprofit, Indian tribes, and corporate entities. Loans may be guaranteed by RBS with a maximum percentage for guarantee of 80 percent for loans of $5 million or less, 70 percent for loans between $5 million and $10 million, and 60 percent for loans exceeding $10 million up to $25 million.
Business and Industry Direct Loans. The criteria and loan purposes are basically the same as for the guaranteed loans. These loans are available to applicants who are unable to obtain the needed assistance from a private lender with a guarantee. The maximum loan amount to any one borrower is $10 million.
Rural Intermediary Relending Program (IRP) Loans. These direct loans are made to intermediary borrowers (i.e. private nonprofit corporations, state or local government agencies, Indian tribes, and cooperatives) who, in turn, relend the funds to rural businesses, private nonprofit organizations and others meeting the criteria for ultimate recipients. IRP loans are limited to rural unincorporated areas, and cities or towns of 25,000 or less population. Financial assistance from the intermediary to the ultimate recipient must be for economic development projects, the establishment of new businesses and/or the expansion of existing businesses, creation of employment opportunities and/or saving existing jobs in rural areas.
Rural Economic Development Loans (REDL). Zero-interest loans are provided to borrowers that re-loan the funds, at zero interest rates, to businesses in unincorporated areas or small towns of 2,500 or less population. The revolving loan funds provide needed capital to non-profit entities and municipal organizations to finance community facilities in rural areas which promote job creation, promote education and training to enhance marketable job skills, or extend or improve medical care. Grant funds are used to establish revolving loan fund programs to promote economic development in rural areas.