To promote sustainable economic development in rural
communities with exceptional needs.
TYPES OF ASSISTANCE:
Project Grants. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Grant funds may be used to assist in the economic development of rural areas
by providing technical assistance, training, and planning for business and
economic development.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Grants may be made to public
bodies, nonprofit corporations, Indian tribes on Federal or State reservations
or other Federally recognized tribal groups, and cooperatives with members
that are primarily rural residents and that conduct activities for the mutual
benefit of the members.
Beneficiary Eligibility: Rural communities and
businesses in rural areas.
Credentials/Documentation: Evidence of legal
capacity. Evidence of financial strength and expertise in activities such as
proposed in the application, sufficient to ensure accomplishment of the
activities and objectives described in the application. This program is
excluded from coverage under OMB Circular No. A-87.
Pre-application Coordination: This program is subject
to 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 the 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. This program is subject to
environmental review requirements; however, most applications are expected to
qualify as general exclusions.
Application Procedure: Potential applicants
should file Standard Form 424.1, "Application for Federal Assistance (For
Non-construction)," and additional material required by Agency regulations
with the USDA Rural Development State Office. The application will include a
written narrative and scope of work. More details are available from the
Headquarters Office or any Rural Development State Office.
Award Procedure: Applications will be given a
priority score in accordance with the criteria set out in the program
regulations.
Deadlines: None.
Range of Approval/Disapproval Time: 30 days to 1
year.
Appeals: Adverse decision may be appealed in
accordance with procedures set out at 7 CFR 11.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: This program has
no statutory formula or matching requirements, although availability of
matching funds is considered in determining priority.
Length and Time Phasing of Assistance: Funding
for complete projects is limited to projects that can be completed within 2
years. Projects of longer duration may only be funded for 1 year at a time.
POST ASSISTANCE REQUIREMENTS:
Reports: Grantees must provide a financial report
and performance activity report quarterly while the project is in process, and
a project evaluation report within 1 year after the project is completed.
Audits: In accordance with the provisions of OMB
Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local
Governments, and Nonprofit Organizations," nonfederal 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: Records and accounts must be maintained
to reflect the operations of the project.
FINANCIAL INFORMATION:
Account Identification: 12-0400-0-1-452.
Obligations: (Grants) FY 01 $3,750,000; FY 02 est
$8,700,000; and FY 03 est Not available.
Range and Average of Financial Assistance: $3,000
to $615,000. Average: $98,684.
A $50,000 grant was made to a Regional Development
Commission to help fund a business support center; a $25,000 grant was made to
a Native American tribe for technical assistance for implementing an economic
development strategic plan.
CRITERIA FOR SELECTING PROPOSALS:
Grant selection criteria include the extent to which
economic development resulting from the proposed project will be sustainable
over the long term; the extent to which the project should lead to
improvements in the quality of economic activity within the community, such as
higher wages, improved benefits, greater career potential, and the use of
higher level skills; the amount of leveraging of funds from other sources;
service to communities that are experiencing trauma due to a major natural
disaster or the closing or major downsizing of a military facility or other
major employer; service to communities that have remained consistently poor
over the long term or have experienced long term population decline or job
deterioration; and the extent of the project's usefulness as a best practice
that may serve as a model for other communities.
