New Funding Opportunities for Rural Counties

County governments are eligible for three recently announced funding opportunities from USDA Rural Development that address rural housing, business development, telemedicine and distance learning.  These new funding opportunities represent a sample of the many USDA Rural Development programs utilized by counties. The agency also operates loan and grant programs utilized by rural communities for development of water/wastewater infrastructure, community facilities, broadband, housing, renewable energy and business development. 

NACo is a leader in national efforts to bolster funding for these programs that are increasingly critical to rural counties, which are facing difficult fiscal situations.  NACo is also leading efforts to ensure that USDA give priority to projects that are connected to local government priorities identified in regional development plans.

In addition to the three funding opportunities described below, USDA Rural Development accepts applications on a rolling basis for a broad range of other programs and is still is seeking to fund community facility projects with Recovery Act funding that must be utilized by September 30, 2010.  The Community Facilities Program provides loans and grant to assist in the development of essential community facilities – such as county health departments, police and fire stations, schools, libraries, child care centers, and a many other facility projects that counties undertake.  The program also funds sidewalk construction and county fair facilities.  Counties are encouraged to talk with staff from their state office to find out if their current or planned projects are eligible.

Contact information for state USDA Rural Development offices is available at http://www.rurdev.usda.gov/recd_map.html.

Rural Business Grants with Focus on “Great Regions”

USDA Rural Development recently announced funding availability for the Rural Business Opportunity Grants of up to $250,000 and is open to nonprofit and public agencies to improve business opportunities in rural areas. Projects should be designed to help rural communities in the region create wealth so they are self-sustaining, repopulating and thriving economically.

New this year is a focus on funding projects with regional approaches to rural development.  USDA will give preference to “Great Region” applications, or applications from multijurisdictional areas within a State, territory, or Federally-designated Tribal land or crossing such boundaries. This regional approach could be considered a test run for the Regional Innovation Initiative proposed in USDA’s budget for FY 2011 which would create set-asides in a number of USDA programs for applications that are part of a regional development plan.  NACo supports this approach, which will help rural communities fund their regional strategic priorities.

Applicants will receive higher rankings if they focus on USDA’s five key strategies:

1. Local and regional food systems as a strategy for encouraging production agriculture and related industries in new wealth creation;

2. Renewable energy generation, energy conservation, and/or climate change adaptation or mitigation as strategies for quality job creation;

3. Use of broadband and other critical infrastructure as a strategy to facilitate local entrepreneurship and expansion of market opportunities for small businesses;

4. Access to capital in rural areas as a strategy to ensure continuous business development and job creation/retention; and

5. Innovative utilization of natural resources as a strategy to expand business opportunities.

Once selected, grantees may be provided with targeted technical assistance by the USDA or other federal agencies.  Applications can be submitted to your state rural development office, or online through Grants.gov. A total of $7.48 million is available. The deadline for applications is June 28, 2010. For more specific information go to http://edocket.access.gpo.gov/2010/2010-6860.htm.

Distance Learning and Telemedicine Grants

USDA Rural Development is offering grants to nonprofits, public agencies, and Indian tribes for grants to provide increased access to technology to foster education, training and health care resources for people living in rural areas of America. Funds may be used to acquire end-user telecommunications equipment such as videoconferencing equipment needed to provide distance learning and telemedicine services to rural communities. The deadline for applications is May 18, 2010. To get more information go to http://edocket.access.gpo.gov/2010/2010-6007.htm.

Rural Rental Housing Loans

USDA Rural Development has issued a Notice of Funding Availability for Loan Guarantees under the Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2010. Under the program, the Agency will provide credit enhancements to encourage private and public lenders to make new loans for affordable rental properties that meet program standards.  Lenders will be expected to underwrite and service the loans. Funds may be used for new construction, acquisition with rehabilitation, or revitalization, repair, and transfer of existing Section 515 housing. The deadline for applications is December 31, 2010. For more information, go to http://edocket.access.gpo.gov/2010/2010-3959.htm.

If you have any questions please contact Erik Johnston, NACo Associate Legislative Director, at 202.942.4230 or ejohnston@naco.org.