Historic, Archive Document Do not assume content reflects current scientific knowledge, policies, or practices. Fact Sheet United States Rural Departmentof Development Agriculture Administration The USDA Rural Development Administration (RDA) has various programs available to aid in the development of rural America. RDA programs are divided into three cate- gories: Water and Waste Disposal, Business and Industry, and Community Facilities. The following is a summary of these programs and their FY93 funding levels. Water and Waste Disposal Grants Water and Waste Disposal I. 1 Purpose: To reduce water and waste disposal costs to a reasonable level for rural users. Water and Waste Disposal (WWD) Loans Grants may not exceed 75 percent ofeligible project costs. The same types of applicants are Purpose:To develop water and waste disposal eligible as for loans. The funding includes (including solid waste disposal and storm $7,300,000 for technical assistance and training drainage) systems in rural areas and towns with grants and $25,000,000 for grants to the colonias a population not in excess of10.000. The funds alone the U.S. - Mexico border. are available to public entities such as munici- palities, counties, special-purpose districts. Indi- Funding Level: $390,000,000 an tribes, and corporations not operated for RDA profit. also guarantees water and waste Additionally, under this grant program, funds disposal loans made by banks and other eligible have been made available to cover emergency lenders. repairs resulting from natural disasters such as Hurricanes Andrew and Iniki and Typhoon Funding Level: $600,000,000 Omar. Funds are available to the same qualify- (direct loans) ing entities that are eligible under the regular $35,000,000 program. (guaranteed loans) Funding Level: $25,600,000 Additionally, under the Water and Waste Dis- posal Loan Program, funds have been made available to cover costs resulting from natural Technical Assistance and Training Grants disasters such as Hurricanes Andrew and Iniki and Typhoon Omar. Funds are available to the Purpose: To provide funding to nonprofit orga- same qualifying entities that are eligible under nizations for technical assistance and training on the regular program. a wide range ofissues relating to the delivery of water and waste disposal service. Funding Level: $35,500,000 Funding Level: $7,300,000 WWD (This funding is part ofthe grant appro- Received by: priation.) IndexingBranchr * v./ Solid Waste Management Grants or the USDAFarmers Home Administration (FmHA)/RDA. The program complements Purpose: To provide technical assistance and RDA's loan "supervision" responsibilities. training to nonprofit organizations and public bodies to reduce or eliminate pollution ofwater Funding Level: $4,242,000 resources and improve planning and manage- ment ofsolid waste facilities. This assistance is available in rural areas and towns with a popu- lation not in excess of 10,000. II. Business and Industry Funding Level: $3,000,000 Business and Industrial (B&I) Guaranteed Loans Emergency Community Water Assistance Grants Purpose: To improve, develop, or finance busi- Purpose:To assistrural communities that have ness, industry, and employment, and improve had a significant decline in quantity or quality the economic and environmental climate in rur- ofdrinking water. Grants can be made in rural al communities, including pollution abatement areas and cities or towns with a population not and control. This objective is achieved through in excess of5,000 and a median household bolstering the existing private credit structure income not in excess of100 percent ofa State's with guarantees on quality loans which willpro- nonmetropolitan median household income. vide lasting community benefits. It is not Grants may be made for 100 percent ofproject intended that the guarantee authority be used costs. The maximum grant is $500,000 when the for marginal or substandard loans or to "bail out" lenders having such loans. This type of significant decline in quantity or quality of water occurred within 2 years, or $75,000 to assistance is available only to businesses located make emergency repairs and replacement of in areas outside the boundary ofa city of50,000 facilities on existing systems. or more and its immediately adjacent urbanized area. Funding Level: $10,000,000 Funding Level: $100,000,000 Additional funds are available in rural areas and cities and towns, with a population not in Additional funds are available to guarantee excess of15,000, to cover costs that are a conse- loans made by private lenders to cover costs quence ofnatural disasters such as Hurricanes arising from the consequences ofnatural disas- Andrew and Iniki and Typhoon Omar. ters such as Hurricanes Andrew and Iniki, Typhoon Omar, and certainmicroburstwind Funding Level: $15,400,000 occurrences. These loans are available in both rural and nonrural areas and, in addition to pur- poses authorized under the regular B&I pro- Rural Water Circuit Rider Technical gram, may be extended to businesses engaged in agricultural production, recreation, and tourism Assistance that are ineligible for regular Business and Purpose: To provide technical assistance for the Industry loans. operation ofrural water systems. The RDA, through contracting, has assisted rural water Funding Level: $305,000,000 systems with day-to-day operational, financial, and management problems. The assistance may be requested by officials ofrural water systems Intermediary Relending Program Loans ties, counties, special-purpose districts, Indian tribes, and corporations not operated for profit. Purpose: To finance business facilities and com- RDA also guarantees community facility loans munity development projects not within the made by banks or other eligible lenders. outer boundary ofany city having a population of25,000 or more. This is achieved through loans made by RDA to intermediaries that pro- Funding Level: $100,000,000 (direct loans) vide loans to ultimate recipients for business $100,000,000 facilities and community development in a rural (guaranteed loans) area. Funding Level: $32,500,000 Watershed Protection and Flood Prevention Loans Additional funds are available for intermedi- aries that will make loans for costs that are a Purpose: To provide loan assistance to consequence ofnatural disasters such as Hurri- sponsoring local organizations in authorized canes Andrew and Iniki and Typhoon Omar. watershed areas for improvements in a water- shed project. There is no population require- Funding Level: $15,500,000 ment for this program. Funding Level: $4,000,000 Alcohol Fuels Credit Loan Guarantees Purpose: To provide loan guarantees to assist Resource Conservation and producers ofalcohol fuel in designated emer- Development Loans gency areas with the purchase ofgrain. This type ofassistance is available only to coopera- Purpose: To provide loan assistance to local tives located in areas outside the boundary ofa sponsoring agencies in authorized areas where city of50,000 or more and its immediately adja- acceleration of a program ofresource conserva- cent urbanized area. tion, development, and utilization will increase economic opportunities for local people. There Funding Level: $30,000,000 is no population requirement for this program. Funding Level: $600,000 ID. Community Facilities Rural Business Enterprise Grants Community Facilities Loans Purpose: To assist public bodies and nonprofit corporations to finance and facilitate develop- Purpose:To construct, enlarge, extend, or oth- ment ofsmall and emerging private business erwise improve community facilities providing enterprises located in areas outside the bound- essential services in rural areas and towns with ary ofa city of50,000 or more and its immedi- a population of20,000 or less. The funds are ately adjacent urbanized area. available to public entities such as municipali- Funding Level: $20,750,000 All applications are considered without regard Applications: to race, color, religion, sex, national origin, age, marital status, or physical or mental handicap of the members ofthe groups applying for assis- These programs were formerly operated by the tance (provided the applicant has the capacity to Farmers Home Administration (FmHA). Since RDA enter into a legal contract), and service must be the newly created FdmoeHsAnot yet have its extended on the same basis. field structure in place, continues to administer the programs at the local level. U.S. DepartmentofAgriculture Detailed information and applications for finan- Rural Development Administration cial assistance are available through local Program Aid 1504 FmHA I offices. January 1993 RDA REGIONS North Central Northeast & VI MO St. Joseph, Sayre, PA Mideast WV Huntington, Western Klamath Falls, OR Southeast & PR Aiken, SC * RegionalOffice