Federal Funds Available For Rural Development

Federal funds are available for development of rural areas — both grants and loans.

That was the message delivered last week to the Hunt County Alliance for Economic Development by Ann Bull, United States Department of Agriculture (USDA) Regional Specialist.

Bull detailed programs offered by the USDA at the quarterly meeting of the alliance that was held this quarter at the Onstead Family Complex at Boles Home. The meeting rotates between different locations in Hunt County.

Lunch was provided and served by Atmos Energy. Donations received by those attending went to the Alliance Scholarship Fund. Alliance Chairwoman Jeanette Moser announced at the end of the meeting that the fund benefited by over $800 collected for the lunch. She said the next meeting would be held July 29 in Commerce.

Bull said there were more than 40 loan, grant and loan guarantee programs available that focused on housing, job creation and retention as well as community facilities. A total of $53.7 million was allocated as Texas’ share of the funding for fiscal year 2008.

She said eligible borrowers were any legal entity including individuals, public and private organizations and federally recognized Indian tribal groups. The loans could be used for business acquisitions, construction, expansion, repair or development costs; purchase of machinery, equipment or supplies; start-up costs and working capital and processing and marketing facilities.

Bull said loan guarantee limits were 80 percent for $5 million or less; 70 percent over $5 million and up to and including $10 million; and 60 percent for loans exceeding $10 million and up to and including $25 million.

In answer to questions, she said the turn-around time on providing loan funds was 30 to 60 days after all required paperwork was in place.

Bull said the loans could be used "basically for anything you can think of — anything that is looking to locate in your rural community."

The Rural Business Enterprise Grant is for Economic Development Corporations or cities to use to attract businesses in their communities or for running utilities to the area. The program provides grant funds that do not have to be repaid. Purposes could include revolving loan fund, construction, site development, acquisition and development of land, loans for working capital and technical assistance.

The Intermediary Relending Program Loan is provided with a 1 percent interest rate to intermediaries like public bodies, nonprofit organizations, Indian tribes and cooperatives. The recipients would develop business facilities or community development projects. Bull said the maximum loan amount was $750,000 with a term of 30 years. The loans are available in rural areas of less than 25,000 people.

Bull also discussed the Rural Energy for America Program. The programs are for renewable energy derived from a wind, biomass or geothermal source or hydrogen derived from biomass or water using wind, solar or geothermal energy sources.

Other programs include the Value-Added Producer Grant Programs for agricultural producers; Community Programs that provide grants, loans and guaranteed loans to provide essential community facilities for rural communities for facilities including adult day care center, animal control shelter, city hall construction and renovation, police car and fire truck.

Bonnie Arrington of Workforce Solutions also spoke to the group about the Summer Youth Employment Program. She said the program was recently awarded $1.2 billion by the American Recovery and Reinvestment Act.

"The goal of the WIA Youth Program is to improve youth participants’ employability skills. The program provides leadership skills, job readiness, career exploration, work experience, short-term certificate training and paid internships."

Youths must be between 14 and 24 years of age, meet income qualifications and have a barrier to employment as defined by the Workforce Investment Act.

Participants would work a minimum of 20 hours per week for a total of 150 hours. Circumstances could extend the maximum to 300 hours. Youths in the program would be paid $7.25 per hour as well as cover their Workman’s Comp Insurance.

Arrington encouraged interested employers to contact her at 903-821-3950 or by email at barrington@dfwjobs.com.

Employer requirements are to provide a positive work experience; age appropriate employment; variety of tasks; duties and skills to be performed; close supervision of the youth with consistent support and feedback on performance and growth; and workplace safety guidelines.