Rural Development is committed to helping improve the economy and quality of life in rural America.

Rural Development is committed to helping improve the economy and quality of life in rural America.

USDA Rural Development Rural Development s Mission To assist rural communities in creating prosperity so they are self-sustaining and economically thriving through investments that create ladders of opportunity, build regional resilience, and support the growth of emerging markets. Rural Utilities Service Helps rural utilities expand and keep their infrastructure and technology up to date, and establish new and vital services such as distance learning and telemedicine. Rural Business Cooperative Service Provides leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace. Rural Housing Service Helps rural communities and individuals by providing loans and grants for housing and community facilities. We can build an entire community from the ground up.

USDA Rural Development Rural Business-Cooperative Service Programs Rural Energy for America Program Value Added Producer Grants Business and Industry Guaranteed Loans Cooperative Development Assistance Biorefinery Assistance Program Intermediary Relending Program Rural Business and Development Grants Rural Business Investment Program Rural Microentrepreneur Assistance Program

Rural Energy for America Program Renewable Energy & Energy Efficiency

Rural Energy for America Program Renewable Energy & Energy Efficiency Promotes energy efficiency and development of renewable energy for agricultural producers and rural small businesses through: Grants for energy audits and renewable energy development assistance Guaranteed loans and grants for energy efficiency improvements and renewable energy systems

Rural Energy for America Program Renewable Energy & Energy Efficiency Agricultural Producer Who may apply? Rural Small Business Individual or entity that receives 51 percent or more of their gross income from agricultural production crops, livestock, aquaculture, forestry operations, nurseries, dairies For-profit small business as defined by the Small Business Administration (SBA) using the NAICS codes : http://www.sba.gov/size Rural area or non-metro community of < 50,000 What is an eligible area? Agricultural producers may be in rural or non-rural areas. Businesses must be in an area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town. http://eligibility.sc.egov.usda.gov/eligibility/welcomeaction.do

Rural Energy for America Program Renewable Energy & Energy Efficiency Eligible Projects Energy Efficiency Lighting Heating Cooling Ventilation Fans Automated Controls Insulation Renewable Energy Solar Wind Small Hydroelectric Anaerobic Digesters Biomass Geothermal Wave/Ocean Power

Rural Energy for America Program Renewable Energy & Energy Efficiency Eligible Project Costs Postapplication Equipment: Purchase & installation New or refurbished Construction & facility improvements Retrofitting Professional service fees Permits & license fees Working capital, land acquisition (Guaranteed loan ONLY with restrictions) Ineligible Project Costs Residential energy projects Equipment: Farm tillage equipment Used equipment Vehicles Pre-application expenses Application preparation or grant writer fees Line of credit Lease payments Payment to the applicant/business owner, beneficiary, or relative

Rural Energy for America Program Renewable Energy & Energy Efficiency What funding is available? Grants for up to 25% of total eligible project costs. Renewable Energy Systems Minimum Grant Request Maximum Grant Request $2,500 Total eligible project costs > $10,000 $500,000 Total eligible project costs > $2 million Energy Efficiency Improvements Minimum Grant Request Maximum Grant Request $1,500 Total eligible project costs > $6,000 $250,000 Total eligible project costs > $1 million Loan guarantees for up to 75 % of total eligible project costs on Loan ONLY projects Combined grant and loan guarantee funding up to 75% of total eligible project costs. (25% grant and 50% loan guarantee)

Minimum Loan Amount Rural Energy for America Program Renewable Energy & Energy Efficiency REAP Guaranteed Loan Assistance Up to 75% of Eligible Project Costs $5,000 Total eligible project costs > $6,667 Maximum Loan Amount $25 million Total eligible project costs > $33.4 million Details USDA guarantees a commercial loan; applicant must have a willing lender. Terms are negotiated between the lender and borrower. Fees, appraisals, equity & collateral requirements apply as determined by the lender and approved by USDA RD.

Rural Energy for America Program Renewable Energy & Energy Efficiency REAP Guaranteed Loan Terms GUARANTEE 85% for loans $600,000 or less. 80% for loans over $600,000 up to $5 Million 70% for loans over $5 Million up to $10 Million 60% for loans over $10 Million MAXIMUM TERM LIMITS OTHER FUNDS REQUIRED INTEREST RATE Working Capital 7 Years Machinery & Equipment 15 Years (or useful life, whichever is less) Real Estate 30 Years 25% of project costs Fixed or Variable; if variable can be adjusted quarterly Negotiated between lender and borrower

Rural Energy for America Program Renewable Energy & Energy Efficiency Are there additional requirements? Applicants must provide at least 75% of the project cost if applying for a grant only. Applicants must provide at least 25% of the project cost if applying for loan, or loan and grant combination. Projects greater than $200,000 require a technical report. Energy efficiency projects require an energy audit or assessment. More information is available regarding subsidized energy audits.

Rural Energy for America Program Renewable Energy & Energy Efficiency APPLICATION WINDOW CLOSING DEADLINE: Grants October 31 Grants March 31 Guaranteed Loans Set Aside Fund Competition-Grant Request $20,000 or less Grant Request $20,000 or less not competing for set aside Grant Request > $20,000 Combination Guaranteed Loan/ Grant Request Continuous Application Cycle Monthly Competitions for funds throughout the year Loan must score a minimum of 50 to compete monthly

Recent Florida/USVI Examples: Rural Energy for America Solar project on Island Hammock Pet Hospital Key Largo, FL

Rural Energy for America, 10 KW Solar System For irrigation system, large water pump and refrigeration. Palm City, FL Recent Florida/USVI Examples:

Rural Energy for America Program Renewable Energy & Energy Efficiency Questions?

Value-Added Producer Grant

Value-Added Producer Grant Purpose Provides funds for economic planning activities or eligible working capital expenses: To help agricultural producers enter into value-added activities related to the processing and marketing of agricultural products To expand markets for, and increase financial returns to agricultural producers To strengthen the rural economy

Value-Added Producer Grant National Competition Maximum Award Amounts $75,000 Planning $250,000 Working Capital Matching Requirement 1-to-1 match (50 percent of total project costs) cash or eligible in-kind contributions to be used only for eligible project purposes. Grant Period Up to 36 months, depending on project complexity.

Value-Added Producer Grant Basic Program Requirements Applicant eligibility Project eligibility Purpose eligibility Other eligibility requirements Evaluation criteria

Value-Added Producer Grant Applicant Eligibility Agricultural Producer An individual or entity directly engaged in the production of an agricultural commodity, or that has the legal right to harvest an agricultural commodity, that is the subject of the value-added project. Agricultural producers must directly engage through substantially participating in the labor, management, and field operations.

Value-Added Producer Grant Four Eligible Applicant Types Independent Producers Agricultural Producer Groups Farmer or Rancher Cooperatives Majority-Controlled Producer-Based Businesses

Value-Added Producer Grant All Four Applicant Types Must : Currently produce and own more than 50 percent of the raw commodity that will be used for the Value-Added product. Own the product from its raw commodity state through the production of the Value- Added product during the Project (except for MTVC).

Value-Added Producer Grant Emerging Market A new or developing, geographic or demographic market that is new to the Applicant or the Applicant's product. Applicants cannot have supplied the proposed product, geographic or demographic market for more than two years at time of application submission. Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority-Controlled Producer-Based Businesses, must show that they are entering an emerging market as a result of the proposed project.

Value-Added Producer Grant Five Value-Added Methodologies Change in physical state Produced in a manner that enhances the value of the agricultural commodity Physical segregation Farm- or ranch-based renewable energy Locally-produced agricultural food product

Value-Added Producer Grant Change in Physical State An irreversible processing activity that alters the raw agricultural commodity and enhances its value and is something other than a post-harvest process that primarily acts to preserve the commodity for later sale. Examples include, but are not limited to- milk into cheese wheat into flour wool into clothing or rugs corn into E-85 ethanol livestock into packaged meat

Value-Added Producer Grant Produced in a manner that enhances the value of the agricultural commodity The value-added product results from the use of a recognizably coherent set of agricultural production practices in the growing of the raw agricultural commodity, such that a differentiated market identity is created for the resulting product. Nonstandard production method that adds value per unit of production over a standard production method, and demonstrates this by a quantifiable comparison with products produced in the standard manner. Examples include, but are not limited to- organic carrots, eggs produced from free-range chickens.

Value-Added Producer Grant Physical Segregation Value-added product results from physically separating (i.e. distance or structure) the agricultural commodity from other varieties of the same commodity on the same farm during production and harvesting, with continued separation during the processing and marketing of the value-added product. Example: GMO corn separated from non-gmo corn on the farm during production and harvesting, with continued separation through marketing.

Value-Added Producer Grant Farm- or Ranch-Based Renewable Energy An agricultural commodity that is used to generate renewable energy on a farm or ranch owned or leased by the independent producer applicant that produces the agricultural commodity. Examples include, but are not limited to- dairy manure into methane and electricity generated on the farm corn into biodiesel generated on the farm. Generation of energy from wind, solar, geothermal or hydro sources are not eligible.

Value-Added Producer Grant Locally-Produced Agricultural Food Product Any agricultural food product that is marketed and distributed within 400 miles of the product s origin or within the State in which the product is produced. Examples include, but are not limited to- specific local grapes with characteristics attributable to the growing area sold to a winery that will produce a local wine; local sweet corn advertised and sold at a premium as a fresher locally-produced alternative to non-local produce.

Value Added Producer Grant Program Questions?

Business & Industry Loan Guarantee

Business & Industry Loan Guarantee What does this program do? Business and Industry loan Guarantees are to help lenders extend credit needed to promote economic development and job creation in rural areas.

Business & Industry Loan Guarantee Eligible Lenders Federal or State chartered banks Savings and loans Farm credit banks Credit unions Eligible Borrowers For-profit business Nonprofits and cooperatives Federally recognized Tribes Public bodies

Business & Industry Loan Guarantee Eligible uses include but are not limited to: Business conversion, enlargement, repair, modernization, or development Purchase and development of land, easements, rights-of-way, buildings, or facilities Purchase of equipment, leasehold improvements, machinery, supplies, or inventory Debt refinancing when new jobs will be created and other conditions are met Business and industrial acquisitions when the loan will keep the business from closing and/or save or create jobs Ineligible uses of funds include: Lines of credit Owner-occupied and rental housing Golf courses Racetracks or gambling facilities Churches or church-controlled organizations Fraternal organizations Lending, investment and insurance companies Projects involving more than $1 million and the relocation of 50 or more jobs Production agriculture, with certain exceptions

Business & Industry Loan Guarantee Maximum amount of a loan guarantee 80% for loans of $5 million or less 70% for loans between $5 and $10 million 60% for loans exceeding $10 million, up to $25 million maximum Loan Terms Maximum term on real estate is 30 years Maximum term on machinery and equipment is useful life or 15 years, whichever is less Maximum term on working capital not to exceed 7 years Balloon payments are not permitted Reduced payments may be scheduled in the first 3 years

Business & Industry Loan Guarantee What are the underwriting and security requirements? The proposed operation must have realistic repayment ability New enterprises may be asked to obtain a feasibility study by a recognized independent consultant The business and its owners must have a good credit history At loan closing/project completion, the business must have tangible balance sheet equity position of: 10 percent or more for existing businesses, or 20 percent or more for new businesses.

B&I Guaranteed Loan Bay Water Exclusive Inc. Boat Club Bonita Springs, FL

Business & Industry Loan Guarantee Questions?

Rural Development Florida Area 6 (South Florida) Contact Information: Michael T Botelho, Area Director Royal Palm Beach Area Office 561-792-2727 X 5 Yashira Mendez, Area Specialist Royal Palm Beach Area Office 561-792-2727 X 5 Email: Yashira.Mendez@fl.usda.gov