USDA RD Resources for NCDFIs

USDA Rural Development Programs for NCDFIs

As part of a two-year cooperative agreement with the United States Department of Agriculture – Rural Development (USDA RD) Office of Tribal Relations (OTR), the Native CDFI Network (NCN) produced an electronic resource toolkit (NCN e-toolkit) to promote awareness of and increase access to Rural Development programs that support economic development in Indian Country.

Advisory Group members gathered throughout the planning period to take a deeper look at ways to create more awareness of USDA RD programs among Native CDFIs, Native-led non-profits, and tribal programs and design strategies to address challenges related to access and implementation of these programs. The group outlined strategies to increase awareness of the wide range of USDA RD programs, reduce complexity related to application and reporting processes, and build stronger relationships between Native CDFIs, tribal programs, and USDA RD program leadership.

Advisory Committee Members include:

(pictured back row left to right)
Sean Winters (Chi Ishobak), Pete Upton (NCN), Tedd Buelow (USDA RD – Office of Tribal Relations), Josiah Griffin (USDA RD – Policy Advisor for Economic Development & Food Systems), Dave Tovey (Nixyaawii Community Financial Services)

(pictured front row left to right):
Julia Hnilicka (USDA RD – Alaska State Director), David Corwin (USDA RD – Single Family Housing Guaranteed Loan Programs), Andria Hively (USDA RD – Single Family Housing Direct Division), Traci Smith (USDA RD – Rural Business Cooperative Services), Angie Main (NACDC), Nancy Jordan (Lummi Community Financial Services), Sheila Herrera (Tiwa Lending), Melissa Sturdivant (USDA RD – Office of Tribal Relations), Charlene Virgilio (Four Directions), Kristen Wagner (NCN), Kenneth Corn (USDA RD – Oklahoma State Director)

This project was supported by the Office of Tribal Relations…

Which program is right for my CDFI?

Funding Categories

Intermediary Relending Program (IRP)

Rural Microentrepreneurial Assistance Program (RMAP)

Rural Business Development Grant (RBDG)

Business and Industry (B&I) Loan Guarantee Program

Funding Structure

Loan

Both

Grant

Loan

Maximum Term

30 years

20 years

?

Funding Frequency

Quarterly

Quarterly

Annually

Year-round

Interest Rate

Fixed 1%

Fixed

Indirect cost rates

Match Requirement

15%

?

Eligible Projects

Working capital

Debt refinancing

Improving real estate

Establish new business

Establish and support microlending programs.

To purchase or develop land

To purchase equipment

For pollution control and abatement

For transportation services

Professional fees, ie, architects, lawyers, engineers, accountants.

Towards the building of hotels, motels, convention centers

For educational institutions

For aquaculture-based rural small business

To establish revolving lines of credit

Technical assistance and training

Feasibility studies and business plans

Rural business incubators

Section 502 Single Family Housing Program – Direct

Section 502 Single Family Housing Program – Guaranteed

SFH Native Relending Demonstration Program

Funding Structure

Loan

Loan

Loan vs. grant

Loan vs. grant

Maximum Term

33 years

30 years

33 years

Year-round

Funding Frequency

Year-round

Year-round

Year-round

Year-round

Interest Rate

Fixed 4.875%

Fixed

1%

Year-round

Match Requirement

?

Eligible Applicants

At or below low-income level

Low or moderate-income

Without safe and sanitary housing

Primary residence occupancy

Have the legal capacity to incur a loan obligation

Meet citizenship or eligible noncitizen requirements

To purchase a home

To build a home

To repair a home

To renovate a home

To relocated a home

To purchase and prepare sites

Water and sewage facilities

To purchase essential household equipment

Rural Energy for America Program (REAP) – Loan Guarantee

Rural Energy for America Program (REAP) – Grant

Funding Structure

Loan guarantee

Grant

Grant

Loan vs. grant

Funding Frequency

Annually

Annually

Year-round

Year-round

Funding Availability

Up to 75% of total eligible project costs

Up to 50% of total eligible project costs

Year-round

Year-round

Combined grant and loan guarantee funding up to 75% of total eligible project costs.

?

Year-round

Maximum Term

40 years

?

?

Year-round

Interest Rate

Fixed 1%

Guarantee fee of 3%

Year-round

Match Requirement

25-50%

?

?

Applicable Fees

  • Initial guarantee fee of 1% of the guaranteed amount.
  • Annual guarantee retention fee of 0.25% of the outstanding principal balance.

?

?

Eligible Projects

Biomas

Geothermal for electric generation or direct use

Hydropower below 30 megawatts

Hydroden

Small and large wind generation

Small and large solar generation

Ocean (tidal, current, thermal) generation

HVAC systems

Insulation

Lighting

Cooling or refrigeration units

Doors and windows

Electric, solar or gravity pumps for sprinkler pivots

Switching from a diesel to electric irrigation motor

Replacement of energy-inefficient equipment

To install energy efficient equipment and systems for agricultural production or processing

Rural Cooperative Development Grant (RCDG) Program

Socially Disadvantaged Groups Grant (SDGG)

Funding Structure

Grant

Grant

Grant

Loan vs. grant

Maximum Term

?

Year-round

Funding Frequency

Annually

Annually

Year-round

Year-round

Interest Rate

Guarantee fee of 3%

Year-round

Match Requirement

25%
5% for Native American tribally-controlled colleges and universities that were granted land-grant status under an Act of Congress in 1994)

15%

?

?

Eligible Projects

Conducting feasibility studies

Developing business plans

Leadership and operational improvement training

Strategic planning

Value Added Producer Grant (VAPG) Program

Funding Structure

Grant

Loan vs. grant

Grant

Maximum Term

?

?

Funding Frequency

Annually

Annually

Year-round

Interest Rate

Year-round

Guarantee fee of 3%

Match Requirement

100%

15%

?

Eligible Projects

Working capital related to producing and marketing a value-added agricultural product

Processing costs

Marketing and advertising expenses

Some inventory and salary expenses

Developing business plans

Conducting feasibility studies

Reporting Toolkits

Description

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USDA Advisory Committee Interviews

Tedd Buelow
Tribal Relations Team Lead