Delta County Business Development Monies-USDA Seeks Applications to Spur Job and Economic Growth in Rural Areas

There are monies available for U.P. businesses. Specifically Delta County Michigan is an under developed location with beautiful waterfront, affordable downtown commercial buildings, and lots of outdoor recreation. Those interested in starting a new business might want to consider the 200K ish to buy and start a business in downtown Escanaba or Gladstone. The area is in the process of being developed and some positive changes have also encourage local governance to make some adjustments to improve upon the business climate (DC Start Ups and Esky-Glad Downtown). 

From a theoretical perspective this piece would be part of the financial and non-financial aspects of drawing business interest to the area. Local governments may also want to consider adjusting their websites to attract business and investment interests. DC Financial Info.

The following was taken from Congressman Bergman's 1st District newsletter. 

Washington - The United States Department of Agriculture (USDA) Deputy Under Secretary for Rural Development announced that the department is accepting loan and grant applications for projects that create jobs and economic growth in rural communities. Funds are being made available under the Rural Economic Development Loan and Grant (REDLG) program.

Through the REDLG program, USDA provides zero-interest loans and grants to Rural Utilities Service (RUS) Electric Program and Telecom Program borrowers who will use the funds to help local businesses finance projects that will create and retain jobs. Projects must be located in rural areas or towns with a population of 50,000 or less.

Funds may be used to support:

• business startup costs;

• business expansion;

• business incubators;

• technical assistance feasibility studies;

• advanced telecommunications services and computer networks for medical, educational and job training services; and

• community facilities projects that spur economic development.

Eligible applicants include current, former and potential borrowers of Rural Development's Electric Program and Telecommunications Program.

Applications are being accepted continuously with funding competition deadlines on Sept. 30, 2021; Dec. 31, 2021; March 31, 2022; and June 30, 2022.

Applications submitted no later than 4:30 p.m. local time on the deadline dates to the USDA Rural Development State Office where the project is located and will compete for the available REDLG funds in that quarter.

Interested applicants are encouraged to contact their local USDA Rural Development State Office well in advance of the application deadline to ask questions about their project, the program or the application process.

Additional information is available on page 50015 of the Sept.7, 2021, Federal Register. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page

Below is from the USDA Website

What does this program do?

The Rural Economic Development Loan and Grant program provides funding for rural projects through local utility organizations. USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility then is responsible for repayment to USDA.
 

USDA provides grants to local utility organizations which use the funding to establish Revolving Loan Funds (RLF). Loans are made from the revolving loan funds to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to USDA.

 

Who may apply to this program?

To receive funding (which will be forwarded to selected eligible projects), an entity must be:

• A former Rural Utilities Service borrower who borrowed, repaid or pre-paid an insured, direct or guaranteed loan.
• Nonprofit utilities that are eligible to receive assistance from the Rural Development Electric or Telecommunication Programs.
• Current Rural Development Electric or Telecommunication Programs borrowers.

What is an eligible area?

Intermediaries may use funds to lend for projects in rural areas or towns with a population of fewer than 50,000 residents. 

How much funding is available to local utilities?

• Up to $300,000 in grants may be requested to establish the Revolving Loan Funds.
• Up to 10 percent of grant funds may be applied toward operating expenses over the life of the Revolving Loan Fund.
• Up to $1 million in loans may be requested.

 

The local utility applies to USDA for funding support on behalf of specified local projects. Projects may begin after an application is submitted, but there is no guarantee of approval. USDA funds are issued to the local utility at project completion.

 

What are the terms for the local utility?

• 10 years at 0 percent interest.
• Grants require a 20 percent match from the local utility.
• Grants must be repaid to USDA upon termination of the Revolving Loan Fund.

How may funds be used?

The local utility passes the funding to ultimate recipients for such eligible projects as:

• Business incubators.
• Community development assistance to nonprofits and public bodies (particularly for job creation or enhancement).
• Facilities and equipment to educate and train rural residents to facilitate economic development.
• Facilities and equipment for medical care for rural residents.
• Start-up venture costs, including, but not limited to, financing fixed assets such as real estate, buildings, equipment or working capital.
• Business expansion.
• Technical assistance.

 

NOTE: 7 CFR, Part 4280.27 and 7 CFR, Part 4280.30 list ineligible uses.

 

How much funding is available to business and community borrowers (the ultimate recipients) through the Revolving Loan Fund?

An ultimate recipient may request up to 80 percent of project costs using these funds, with the remainder provided by the ultimate recipient or the local utility.

 

What are the terms on the loan to the ultimate recipient?

• The interest rate is 0 percent.
• Up to 80 percent of project costs; 20 percent must be provided by the ultimate recipient or the local utility.
• The local utility may incorporate interest rates or administrative loan fees after the funds have been loaned out and revolved once. First-time loans are at 0 percent interest.
• Repayment may be deferred up to two years for projects including a start-up venture or Community Facilities project.

How do we get started?

Applications for this program are accepted through your local office year-round. You should work with your local office to acquire the documents needed to submit an application.

 

Who can answer questions?

Contact your local office.

 

What law governs this program?

• Basic Program – Code of Federal Regulations, 7 CFR, Part 4280.
• Loan/Grant Servicing – Code of Federal Regulations, 7 CFR, Part 4280 and 2 CFR Part 200.
• This program is authorized by the Rural Electrification Act of 1936.

Why does USDA Rural Development do this?

Rural Development undertakes this program in order to promote rural economic development and job creation projects.

 

NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.