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    Thomas G. Fern
     State Director

  Phone: 859/224-7300
Water and Environmental Programs
Water and Environmental Programs


   Provide loan and grant funds to
     construct, enlarge, extend or
 otherwise improve water and waste
   systems, resulting in reasonable
 user costs for rural residents, rural
  businesses, and other rural users.
Water and Environmental Programs
Eligible Applicants:
 Public bodies:
     Cities
     Districts (Water & Sewer)
     Authorities
     Commissions
 Not-for-Profit Corporations
   Associations
   Private Corporations
   Water and Environmental Programs
                      Rural Areas
   PROJECTS financed by Rural Development must be
located in rural areas, defined as any area not in a city or
 town with a population in excess of 10,000, according to
    the latest decennial Census of the United States.
FACILITIES may be located in non-rural areas; however,
 Rural Development funds may be used to finance only
     that portion of the facility serving rural areas.
Water and Environmental Programs
           Eligible Purposes:
 Construction
    Water lines
    Sewer lines
    Tanks
    Treatment facilities
 Land & Rights
 Other associated costs
Water and Environmental Programs

  Types of financial

   Direct loan

   Grant
 Water and Environmental Programs
        Rates and Terms
 Interest rates set quarterly
  based on current market index
 Loan repayment period shall not exceed
  the useful life of the facility, state statute,
  or 40 years from the date of the bond or
  note, whichever is less
 Water and Environmental Programs
                           Interest Rates
                       Based on current market

    Poverty Rate         Intermediate Rate           Market Rate
  60% of the current
    market index         80% of the current       Current market index
                           market index
   (Subject to DOW

Current rate 2.375 %   Current rate 3.250 %      Current rate 4.000 %
Community Facilities
       Community Facilities


Develop essential community facilities
   for health, public safety, public
 services, and other type facilities for
         all rural Americans
          Community Facilities
Eligible Applicants:
 Public bodies:
    Cities
    Counties
    Districts
    Other political subdivisions of
     the State/Commonwealth
 Not-for-Profit Corporations
    Private Corporations
       Community Facilities

            Facilities must be located in
             rural areas, defined as any
          area in any city or town with a
    corporate population not in excess of
20,000 inhabitants, according to the latest
  decennial Census of the United States.
              Community Facilities
                    Eligible Purposes:
   Health Care:
       Clinics
       Hospitals                    Public Services:
       Nursing Homes                    Adult day care centers
       Etc.                             Child care centers
                                         City Halls
   Public Safety:                       Courthouses
       Police and fire stations
                                         Community Centers
       Police cars and fire trucks
                                         Etc.
       Rescue Vehicles
       Jails
       Etc.
            Community Facilities

Types of financial assistance:
   Direct loan
   Grant (Very limited funds)
   Guaranteed Loan
   Combination direct / guaranteed loan
           Community Facilities
          Rates and Terms
 Interest rates set quarterly
  based on current market index
  (currently 4.000 %)
 Loan repayment period shall not exceed the
  useful life of the facility, state statute, or 40
  years from the date of the bond or note,
  whichever is less

• Applications are accepted year-round
• Loan and/or grant requests are approved
  as funds are available
• Complete applications should be
  submitted to the local Rural Development
  Area Office for processing
                  USDA Initiatives
                 Public Library Initiative

Who can apply:
•Not-For-Profit Organizations
•Public Bodies
Possible projects include:
•Building Purchase
•Building Expansion
•Facility Improvement
•Purchase Equipment, including Computers

    The Broadband Loan program
provides loans for funding the costs of
   construction, improvement, and
   acquisition of facilities to provide
  broadband service to eligible rural
Single Family Housing Program
                                       U      S    D     A
•Homeownership has long been a cornerstone of American culture.
•In addition to meeting one of life's basic needs, owning your own home
promotes personal and economic security and encourages a sense of
pride in one's community.
•However, many rural residents have historically encountered many
obstacles to homeownership ranging from a lack of affordable credit
opportunities to a lack of suitable housing alternatives.
•Furthermore, many existing residences consist of older housing stock that
has not been adequately maintained or has outlived its useful life. As a
result, many rural residents find this portion of the American dream beyond
their reach and are forced to live in unsuitable housing conditions.
•Rural Development's Single Family Housing programs were established
to help address this situation by expanding credit opportunities for lower
income rural residents.

The USDA housing programs assist very low, low and moderate
income persons buy, build or rehabilitate housing in rural areas. We
have helped over 3,000 families purchase a home, utilizing $325
million and rehabilitated homes for 500 families, this year.
    1. 502 Direct program assist very low and low-income persons
        purchase homes thru our USDA Rural Development Office.
    2. 502 Guaranteed program assist applicants working with
        lenders purchase homes. This program increases the
        availability of affordable credit opportunities.
    3. 504 loans and grants assist eligible rural very low income
        homeowners to improve or modernize their homes.
The true strength of the America is the heart and souls of our citizens.
One of the most exciting things that can happen to a person is to
purchase a home. When you own something you call your own, you
have a vital stake in the future of our nation. Your home is building
EQUITY in the FUTURE! Which makes sure your family has a better
Business-Cooperative Service Program
      Business & Industry (BI)
     Guaranteed Loan Program
Provides financial assistance to improve, develop, or finance business,
   industry, and employment opportunities.
• Eligible applicants include any legal entity, including a cooperative
   organization, corporations, individuals, public body and private
   organizations (profit or non-profit)
• Citizens of the U.S. or reside in the U.S. after being legally admitted.
• At least 51% U.S. ownership or reside in the U.S.. after being legally
• Located in a rural area (Less than 50,000 population)
Rural Energy for America
(Section 9007 - 2008 Farm Bill)
                    Grants - Limits
• Grants request must not exceed 25% of the eligible project
   –   Renewable Energy:
   •   Minimum grant request $2,500
   •   Maximum grant request: $500,000
   •   If request is over $50,000, regulation requires a project-specific
       feasibility study prepared by a qualified independent consultant
   –   Energy Efficiency:
   •   Minimum grant request $1,500
   •   Maximum grant request: $250,000
   •   If total project costs are over $50,000, regulation requires an
       energy audit. Less than $50,000, an Energy Assessment is
     Guaranteed Loans - Limits
• Guaranteed loans are limited to 75% of the
  total eligible project cost

• Maximum guarantee is $10 million

• Guaranteed Loan/Grant combination limited
  to a total of 75% of the total eligible project
  cost (25% Grant and 50% Guaranteed
  Intermediary Relending Program
• 1% - 30 year, direct loans to establish revolving
  loan funds for business and community
  development projects. (< 25,000 population)
• Eligible intermediaries include private non-
  profit corporations and public bodies like
• Local match required. ($1 per $4 requested)
• National competition for funds.
   Rural Economic Development Loan
         and Grant Program
• RECC’s and telephone companies apply for zero
  interest loans or grants to promote rural economic
  development and job creation projects. (< 2,500
  population has priority)
• 0% loans are passed through to business or ultimate
  recipient. Grants used to establish revolving loan
• National competition for funds; $450,000 (loan) and
  $200,000 (grant) maximums.
    Rural Business Enterprise
• Grants to facilitate small and emerging business
  enterprises. (< 50,000 population)
• Grants used either to establish revolving loan
  funds, technical assistance or site development.
• Eligible applicants are public bodies and private,
  non-profit corporations.
• National competition for funds. Typical award
  range from $10,000 - $100,000.
      Rural Business Opportunity
• Grants to provide technical assistance for business
  development or conduct economic development
  planning in rural areas. (< 50,000 population)
• Public bodies, cooperatives and private nonprofits
  are eligible.
• National competition for funds.
• Maximum award is $50,000.
                Value Added
              Producer Grants

• Grants for planning or working capital. (no
  population limit).
• Independent producers, farmer, ag producer
  group or majority - controlled producer based
  business venture are eligible.
• National competition for funds.
• Maximum award was $500,000. Matching funds
    Rural Microenterprise Assistance
• Provide direct 2% loans for up to 20 years to microlenders
  (Non-profits, public institution of higher education, or
  Indian tribes) for the purpose of providing fixed interest
  rate microloans ($50,000) to rural microentrepreneurs or
  startup and growing microenterprises; and,
• Eligible microlenders will also automatically receive
  technical assistant grants to provide technical assistance
  and training for microentrepreneurs who received or are
  seeking a microloan under this program; or,
     Vernon C. Brown
Community Programs Director

• Email:
• Phone:
  – 859/224-7336
        Linda A. Chadwell
Single Family Housing Program Director

   • Email:
   • Phone:
      – 859/224-7322
             Jeffery L. Jones
Business-Cooperative Service Program Director

       • Email:
       • Phone:
          – 859/224-7435
      Rural Development
         Area Offices
• Mayfield – 270/247-9525 X4       • Shelbyville – 502/633-3294 X4

• Madisonville – 270/821-4430 X4   • Williamstown – 859/824-7171

• Columbia – 270/384-6431 X4       • Morehead – 606/784-6447 X4

• Elizabethtown – 270/769-1555     • London – 606/864-2172 X4

• Bowling Green - 270/842-1146 X4 • Hazard – 606/439-1378

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