USDA Rural Development - Illinois Institute for Rural Affairs

USDA Rural Development - Illinois Institute for Rural Affairs

USDA Rural Development

American Recovery &Reinvestment Act (ARRA)Rural Development Financing•Business & Industry•Community Facilities•Water and Waste Systems

Recovery Act… B&I• Purpose:– Spur Business activity and growth– Economic recovery from downturn– Financial backing for businesses in ruralareas– To create jobs and stimulate economicdevelopment– Build viable and sustainable ruralcommunities with Guaranteed Loans

ARRA B&I Purpose……is achieved by bolstering the existing privatecredit structure by:Guaranteeing quality loans which will providelasting community benefits.It is not intended that the guaranteeswill be used for marginal orsubstandard loans or for relief oflenders having such loans.

B&I Eligibility• Project– Must be located in a rural area• Population less than 50,000•• Lender– Federal or state chartered banks– Farm Credit System institutions with directlending authority

• BorrowerB&I Eligibility– Sole proprietorship– Corporations– Cooperatives– Partnerships– Other legal entities, public & private, thatare organized and operated on a profit ornonprofit basis– Must be at lest 51% U.S. citizen/permanentresident alien owned

Loan PurposesLoans up to $25 million for:• Business acquisitions• Business conversion, enlargement, repair,modernization or development• Purchase & development of land, buildings orfacilities• Machinery & equipment• Startup costs & working capital

Projects Ineligible for ARRA B&I• Zoos• Aquariums• Convenience Stores unless:– The business provides quality jobs ANDsells E-85 fuel• Pools or Water Parks• Golf courses• Hotels/motels that have pools or water parks• Museums• Any business that has ANY gambling revenueother than state-run lotteries

ARRA Advantages• A reduced guarantee fee of 1%• No annual renewal fees will be chargedon these loans.• Potential for a 90% guarantee

Illinois Funded Projects• $32,850,000 in ARRA B&I funds• 11 guaranteed loans• 8 businesses• Goal for ARRA & regular B&I $65,900,000by 9/30/2010

Ron FirkinsBusiness Programs Director(217)

Community ProgramsDirect LoansSalem TownshipHospital Salem, ILDewitt Piatt Bi County HealthDepartment,Clinton, ILMacoupin CountyMental Health

Recovery Act & Community Facilities• Purpose:– Provide essential public services– Create jobs– Stimulate local economies• Funds can be use to– Buy, build or renovate facilities– Purchase and equip facilities• Access to health care• Support for first responders• Construction and repair of communityfacilities

CF Eligibility•Rural areas and towns of 20,000 or less•Local Governments,•Not for Profits•Indian tribes

Know Your Farmer Know Your Food•Funding available to support local andregional food systems•Examples- Food banks- Community gardens- School cafeterias- Farmers markets- Community kitchens•Funding from business programs is alsoavailable

Public Library Initiative• $3 million in loans and grants available inIllinois through the Recovery Act• Possible uses– New construction– Repairs and improvements– Shelving, furniture, computers,audio-visual and distancelearning equipment, bookmobilesEldorado MemorialPublic Library

Water & Waste ProgramsABS Water CooperativeWest Prairie Water DistrictArcola, ILGreene County RuralWater DistrictLoans & Grants

Recovery Act & Water & Waste Systems• Purpose– Provide water and waste financing to providesafe, reliable drinking water, improve wastewatertreatment systems, protect the environment• Funds can be used for– Drinking water systems– Sanitary sewer– Storm drainage

Water & Waste Eligibility• Rural areas and towns of 10,000 or less• Public Entities• Not for Profit Corporations

Rural DevelopmentOffices

Patrick LydicCommunity Programs Director(217) 403-6209Patrick.

Improving the quality of lifeIncreasing economic opportunity

More magazines by this user
Similar magazines