FEDERAL AGENCY:

RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Food, Agriculture, Conservation, and Trade Act of 1990, Section 2347, Public Law 101-624; Consolidated Farm and Rural Development Act, Section 310B(f) through (h), 7 U.S.C. 1932; Federal Agriculture Improvement and Reform Act of 1996, Public Law 104-127.

To establish and operate centers for rural cooperative development to improve economic conditions in rural areas by promoting the development of new cooperatives and/or improvement of existing cooperatives.

TYPES OF ASSISTANCE:

Project Grants. Place Cursor Here for Definition

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Applicants eligible are nonprofit corporations and institutions of higher education. Rural area for this program is defined as all territories of a State, that is not within the outer boundary of any city having a population of 50,000 or more according to the latest decennial census of the United States.

Beneficiary Eligibility:   Rural residents.

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 generally not 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:   Pre-application Form SF-424 is filed at the Rural Development (RD) State office.

Award Procedure:   The pre-application should be submitted to the RD State Office. The funding request is submitted to the National Office for scoring and funding authority. Final processing of the awards will be given to the designated State.

Deadlines:   Published in the Federal Register.

Range of Approval/Disapproval Time:   Several months.

Appeals:   If an application is rejected, the reasons for rejection are fully stated. Applicants may request a review of this decision from the next higher management level of RBS. Such requests will be routed through the RD State Director.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   The total allocation is controlled by the National Office. Grant funds may be used to pay 75 percent of a project cost and administrative cost associated with the project. Applicants will be required to contribute at least 25 percent in cash or in kind contributions.

Length and Time Phasing of Assistance:   Not applicable.

POST ASSISTANCE REQUIREMENTS:

Reports:   Periodic reports are made to RD.

Audits:   In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," non federal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records:   The grantee shall maintain adequate records and accounts to assure that grant funds are used for authorized purposes.

FINANCIAL INFORMATION:

Account Identification:   12-1900-0-1-452.

Obligations:   (Grants) FY 01 $4,000,000; FY 02 est $5,900,000; and FY 03 est Not available.

Range and Average of Financial Assistance:  
From $65,000 to $200,000.

In fiscal year 2001, 21 grants were made.

REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR 4284, Subpart F; 7 CFR 3015; 7 CFR 3019. NOTE: New regulations for the program was published in the Federal Register on August 7, 1997.

INFORMATION CONTACTS:

Regional or Local Office:   Contact the appropriate RD State Office listed in Appendix IV of the Catalog.

Headquarters Office:   Assistant Deputy Administrator, Cooperative Services, Rural Business-Cooperative Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-8460. Use the same number for FTS.

Web Site Address:   http://www.rurdev.usda.gov.

EXAMPLES OF FUNDED PROJECTS:

Grant funds were used to provide technical assistance, applied research, technical training, and cooperative education activities for rural cooperatives.

CRITERIA FOR SELECTING PROPOSALS:

Preference will be given to those applicants that demonstrate; a proven track record in cooperative development; in providing technical assistance in rural areas; ability to facilitate the establishment of cooperatives and new cooperative approaches; and Transferability of approach to rural areas outside of project area. Projects will be selected that contribute the most to the improvement of economic conditions of the rural area.