To
facilitate the development of small and emerging private business,
industry, and related employment for improving the economy in rural
communities.
TYPES
OF ASSISTANCE:
Project Grants. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Rural
business enterprise grant (RBEG) funds may be used to create, expand
or operate rural distance learning networks or programs that provide
educational or job training instruction related to potential employment
or job advancement to adult students; develop, construct or acquisition
land, buildings, plants, equipment, access streets and roads, parking
areas, utility extensions, necessary water supply and waste disposal
facilities; refinancing; services and fees; and to establish a revolving
loan fund. Television demonstration grant (TDG) funds may be used
for television programming to demonstrate the effectiveness of providing
information on agriculture and other issues of importance to farmers
and other rural residents. All uses must assist a small and emerging
private business enterprise except for the TDG Program.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Applicants eligible for RBE grants
are public bodies and nonprofit corporations serving rural areas
such as States, counties, cities, townships, and incorporated towns
and villages, boroughs, authorities, districts and Indian tribes
on Federal and State reservations which will serve rural areas.
Applicants eligible for TD grants are statewide, private, nonprofit,
public television systems whose coverage is predominantly rural.
Rural area for this program is defined as a city, town, or unincorporated
area that has a population of 50,000 inhabitants or less, other
than an urbanized area immediately adjacent to a city, town, or
unincorporated area that has a population in excess of 50,000 inhabitants.
Beneficiary
Eligibility: A small and emerging private
business enterprise which will employ 50 or less new employees
and has less than $1.0 million in projected gross revenue. Public
bodies, private non- profit corporations, and Federally recognized
Indian tribes receive the grant to assist a business. Grants are
not made directly to the business.
Credentials/Documentation:
Evidence of legal capacity, economic feasibility and financial
responsibility relative to the activity for which assistance is
requested.
Pre-application
Coordination: The standard application forms
as furnished by the Federal agency and required by OMB Circular
Nos. A-110 and A-102 must be used for this program. An environmental
assessment is required for this program. This program is eligible
for coverage under E.O. 12372, "Intergovernmental Review of Federal
Programs." An applicant should consult the office or official designated
as the single point of contact in his or her State for more information
on the process the State requires to be followed in applying for
assistance, if the State has selected the program for review.
Application
Procedure: Preapplication Form SF-424 is filed
at the Rural Development local office. The standard application
forms as furnished by the Federal agency and required by OMB Circular
Nos. A-110 and A-102 must be used for this program.
Award
Procedure: After the preapplication has been
reviewed by the RD local office, it is forwarded to the RD State
Office for review and processing instructions. Following approval
by the State Office, funds are made available to the local office
for final delivery. Notification of awards must be made to the
designated State Central Information Reception Agency.
Deadlines:
None.
Range
of Approval/Disapproval Time: 30 to 90 days.
Appeals:
If an application is rejected, the reasons for rejection are fully
stated. Applicant may request a review of this decision from the
next higher management level of Rural Business-Cooperative Service.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Funds are allocated
to States based on rural population and percent of nonmetropolitan
per capita income. On occasion, the allocation to States may not
be practical due to funding or administrative constraints. In these
cases, funds will be controlled by the National Office.
Length
and Time Phasing of Assistance: Not applicable.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Periodic reports are made to RD.
Audits:
Periodic audits should be made as part of the recipient's systems
of financial management and internal control to meet terms and
conditions of grants and other agreements. In accordance with
the provisions of OMB Circular No. A-133, "Audits of States, Local
Governments, and Non-Profit Organizations", State, local governments
or Non-profit Organizations that expend Federal financial assistance
of $300,000 or more within the fiscal year shall have an audit
made for that year.
Records:
The grantee shall maintain adequate records and accounts to assure
that grant funds are used for authorized purposes.
FINANCIAL
INFORMATION:
Account
Identification: 12-0400-0-1-452.
Obligations:
(Grants) FY 01 $39,400,000; FY 02 est $47,060,000; and FY 03 est
Not available.
Range
and Average of Financial Assistance:
$2,000 to $500,000. Average: $83,309.
In fiscal year 2001, 414 grants were made. It is estimated that
487 grants will be made in fiscal year 2002.
REGULATIONS,
GUIDELINES, AND LITERATURE:
7 CFR 1942, Subpart G.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult your telephone directory
for RD local office number. If no listing, get in touch with appropriate
Rural Development State Office listed in Appendix IV of the Catalog.
Headquarters
Office: Director, Specialty Lenders Division,
Rural Business-Cooperative Service, Department of Agriculture,
Washington, DC 20250-3222. Telephone: (202) 720-1400. Use the
same number for FTS.
Web
Site Address: http://www.rurdev.usda.gov
EXAMPLES
OF FUNDED PROJECTS:
Grant funds were used to assist rural communities in developing
small industrial parks or sites by acquiring land, the purchase
of necessary equipment, construction of buildings, to provide water
and waste disposal facilities, and to pay for costs of streets,
parking areas and access roads. Also, grant funds were utilized
to establish/capitalize revolving loan funds to assist in the development
of small and emerging private business enterprises in rural areas,
and provided technical assistance (i.e., a problem solving function)
to qualifying small businesses in rural areas.
CRITERIA
FOR SELECTING PROPOSALS:
Projects selected for funding should, as much as practical, adhere
to the following priorities: (1) Projects which will be located
in communities having a large portion of their population with low
incomes; (2) projects which will save existing jobs; (3) projects
which will create jobs; and (4) projects located in areas with high
unemployment rate.
