USDA Encourages Rural Communities, Water Districts to Apply for Loans to Improve, Rebuild Infrastructure; $4 Billion Available

Department’s Latest Investments to Benefit 165,000 People in Rural Communities in 24 States

WASHINGTON, July 30, 2018 – Assistant to the Secretary for Rural Development Anne Hazlett today announced a historic commitment by the U.S. Department of Agriculture to upgrade and rebuild rural water infrastructure.
“USDA is committed to being a strong partner to rural communities in building their futures,” Hazlett said. “All people – regardless of their zip code – need modern, reliable infrastructure to thrive, and we have found that when we address this need, many other challenges in rural places become much more manageable.”
Eligible rural communities and water districts can apply online for funding to maintain, modernize or build water and wastewater systems. They can visit the interactive RD Apply tool, or they can apply through one of USDA Rural Development’s state or field offices.
USDA is providing the funding through the Water and Waste Disposal Loan and Grant program. It can be used to finance drinking water, stormwater drainage, and waste disposal systems for rural communities with 10,000 or fewer residents.
Below are a few examples of USDA’s latest investment (PDF, 162 KB) of $164 million for 54 projects nationwide:
  • Wadesboro, N.C., is receiving a $706,000 loan and an $815,000 grant to improve its water distribution system. The town will install 7,000 linear feet of eight- and 12-inch PVC and dip water main, and 11 hydrants and service re-connections. The project will benefit the town’s 2,012 residential users, 84 commercial users, eight industrial users and five institutional users. Wadesboro, population 5,841, is in Anson County.
  • The village of Greenview, Ill., is receiving a $4.9 million loan and a $3.7 million grant to construct a wastewater collection and treatment facility. The system will collect and convey wastewater via a centralized pumping station. Wastewater will be transferred to a contained mechanical treatment system. Treated wastewater will then be released to Grove Creek. This project will alleviate health hazards due to private septic or aeration systems that discharge effluent into drainage fields, causing raw sewage backups in homes during major rainfalls. The new system will serve the town’s 778 residents.
  • In Baudette, Minn., the Wheelers Point Sanitary District is receiving a $300,000 loan and a $638,000 grant to construct a sewer collection system. The District is on the shores of Lake of the Woods and the Rainy River in Lake of the Woods County in northern Minnesota. Homes and businesses in the district have individual septic systems that need to be replaced. If these systems were to fail, the contamination would affect the river and the lake. The state considers this project a priority due to the possibility of environmental contamination. The new system will protect the environment and area waters.
USDA is announcing investments today in Alabama, California, Delaware, Iowa, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Missouri, Montana, New Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, South Carolina, Vermont, Washington, Wisconsin and West Virginia.
In FY 2018, Congress provided a historic level of funding for water and wastewater infrastructure. The 2018 Omnibus spending bill includes $5.2 billion for USDA loans and grants, up from $1.2 billion in FY 2017. The bill also directs Agriculture Secretary Sonny Perdue to make investments in rural communities with the greatest infrastructure needs.
In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.
To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community services such as schools, public safety, and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.
Source: USDA

USDA Seeks Applications for Grants to Support the Development of Rural Community Facilities

From USDA: Agriculture Secretary Sonny Perdue today announced that USDA is seeking applications for technical assistance and training grants in the Community Facilities program.

“Too often, rural community organizations lack the technical expertise they need to access federal dollars,” Perdue said. “These technical assistance and training grants will help rural organizations overcome hurdles that prevent them from fully utilizing the Community Facilities Program. Increased access to federal funding will help build essential community facilities, and will allow rural areas to thrive.”

The grants are being provided through the Community Facilities Technical Assistance and Training Grant Program. Congress authorized this new program in the 2014 Farm Bill to help rural communities develop their applications for Community Facilities loans and grants.

Communities can use the grants to hire specialized personnel, pay for feasibility studies, retain consultants to prepare financial assistance applications and identify and plan for long-term community facilities needs.

Providing technical assistance will help more rural communities qualify for loans and grants. Many often lack access to specialized personnel who complete financial and environmental analyses, for example. These analyses often must be included in applications for USDA loans and grants.

Public bodies, non-profit organizations and Federally-recognized Tribes are eligible to apply for this funding. The maximum grant is $150,000.

Interested applicants may find more information about this program on page 23525 of the May 23, 2017, Federal Register.

Community Facilities programs help underserved rural communities develop essential community services, which in turn helps attract investments, create and retain jobs and businesses, and retain residents.

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; homeownership; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.

USDA Certifies Another Rural Business Investment Fund

Fund to Help Capitalize Small Rural Businesses

WASHINGTON, May 18, 2017 – Acting Deputy Under Secretary Roger Glendenning today announced that USDA has certified the Innova Ag Innovation Fund IV LP as an investment pool for small and startup rural businesses.

“This certification is another tool USDA provides to help rural businesses, to create jobs and to attract private-sector capital to rural communities,” Glendenning said. “Geography should not be a barrier to economic success. This pool will offer rural business owners the same access to capital as their counterparts in metropolitan areas.”

The fund will support 30 to 45 companies that have the potential to generate more than $200 million in economic activity and create 600 jobs. It will provide capital for high-growth companies in the biosciences, technology and agricultural technology industries. The fund is the second USDA has certified under the Rural Business Investment Program (RBIP). RBIP funds support USDA’s strategy for rural economic growth.

For a fund to receive USDA certification, its managers must demonstrate that they have venture capital experience and that they have successfully worked with community development organizations.

The Ag Innovation Fund is being managed by Innova Memphis RBIC, LLC. Innova has three other funds that are not part of the Rural Business Investment Program. Those three funds collectively have invested $20 million in 75 startup companies, attracted $90 million of outside capital and created approximately 250 jobs.

Farm Credit System members are contributing $31 million to the Ag Innovation Fund. The Farm Credit System is a nationwide network of banks and lenders specifically chartered to serve agriculture and the U.S. rural economy.

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; homeownership; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.