This document summarizes several rural development housing and business programs administered by the USDA. It outlines loan and grant programs that provide assistance to low-income homeowners for home repairs and purchases. It also describes loan programs that support multifamily housing and self-help housing. Additionally, it summarizes business programs that provide loan guarantees for businesses and financing for water/waste projects, community facilities, and renewable energy.

1. RURAL DEVELOPMENT
HOUSING PROGRAMS

2. SFH REPAIR LOAN AND GRANT
• Help low and very low income owner occupants complete
essential repairs
• Loans – repair or modernize; 1% fixed interest rate; up to 20
year loan term; $20,000 outstanding at any one time
• Grants – remove health/safety hazards only; $7500 lifetime
maximum; must be at least 62 years old
• FY 2012 to date:
17 families assisted with loans - $99,459
64 families assisted with grants - $386,010

3. SFH 502 DIRECT LOAN PROGRAM
• Assist low and very low income applicants purchase new or
existing home, complete required repairs, and pay closing costs
• Payments are based/subsidized on annual household income
• Subsidy will be 24% of monthly income or 1% rate whichever is
higher
• 100% financing with 33 year loan term and fixed interest rate
(currently 3.25%)
• FY 2012 to date: 90 families assisted - $8,243,465
• FY 2011: 183 families assisted w/ Direct funds - $17,632,545

4. SFH 502 GUARANTEED LOAN
PROGRAM
• Assist applicants purchase new or existing, complete required
repairs, and pay closing costs OR
• Refinance construction to permanent or existing RD direct or
guaranteed to lower the rate and extend the term
• Income cannot exceed moderate level which is currently
$74,750 for families of 1-4 persons and $98,650 for 5-8 person
families
• Loans are approved by an approved lender
• 100% mortgage financing but LTV can exceed to include
guarantee fee
• No down payment required; mortgage insurance not allowed

5. SFH 502 GUARANTEED LOAN
PROGRAM CONTINUED
• Actual 2% guarantee fee on purchase, 1.5% on refinance, plus
.3% annual fee on all loans
• 30 year loan term and fixed interest rate
• FY 2012 to date: 1092 families assisted - $119,262,370
• FY 2011: 2,356 families assisted - $257,203,834
• FY 2010: 3,045 families assisted - $327,126,343
• FY 2009: 3,068 families assisted - $315,459,603

6. 533 HOUSING PRESERVATION
GRANTS
• Funds are provided to Grantee to assist low and very low
income homeowners repair/rehab their homes or build new
• Eligible applicants – American Indian Tribes, private non-profit,
public non-profit organizations
• Funds can be used for: sewers/septic systems, water systems,
wiring, roof repair/replacement, siding, handicap accessibility;
admin fees
• Grantee supervises work, can use 20% grant funds for admin
expenses, provides RD quarterly reports

7. 533 HOUSING PRESERVATION
GRANTS CONTINUED
• FY 2011 State Allocation : $239,295
6 applications currently submitted for funding from regular funds
• FY 2010 State Allocation: $261,825
6 projects were funded w/regular and disaster funding

8. 515 MULTI-FAMILY DIRECT
HOUSING
• 2011
1 Property funded for $1,000,000
• 2010
2 Properties funded for $463,243

9. 523 MUTUAL SELF HELP HOUSING
• Provide funds to Grantees to assist with technical assistance,
recruitment, etc. to eligible homeowners to build homes utilizing
“sweat equity”.
• Currently 6 operating Grantees in the state with funding totaling
$3,542,611 to assist 208 families build homes
• FY 2010: 4 Grantees funded $2,873,211 to build 160 homes in 2
yrs.
• FY 2011: 1 Grantee funded $449,400 to build 28 homes in 2 yrs.
• FY 2012 to date: None funded to date; 2 applications pending
for $1,757,839 and 102 homes

10. 538 GUARANTEED RURAL RENTAL
HOUSING LOAN PROGRAM
• FY 2011
0 loans to date
• FY 2010 to date:
2 loans totaling $839,020 on projects with total development
costs of $13,804,276 (Leverage funding 88.9% and 91.4% on
the two projects)

11. Business &
Community
Programs

12. Business & Industry Guaranteed Loans
Community Facility Direct Loans & Grants
Water & Environmental Programs
and…numerous other programs

13. Business & Industry Guaranteed
Loans
• 50,000 population or less *
• New or existing businesses
• 80% Guarantee *
• Job Creation and Job Sustainment
• Banks use it for risk management

14. Business & Industry Guaranteed
Loans
• Since 2008….
– Over 60 businesses have been helped
– Thousands of jobs have been created or
saved
– Over 240 million dollars guaranteed
– Set records for obligations in 2008 and
2010

15. Business & Industry Guaranteed
Loans
• Some examples….
– Hotels
– Manufacturing Companies
– Convenience & Grocery Stores
– Oil & Gas
– Retail Establishments

16. Water & Environmental
Programs
• 10,000 population or less
• Low interest loans (2.00% to 3.375%)
• Some grants are possible
• For Municipalities & Rural Water
Districts and Tribal Entities
• Guaranteed loans are available
• Drinking water, & waste water

17. Water & Environmental
Programs
• Drinking water, & waste water
• Since 2008…
– Over $198,000,000 dollars obligated
– Repaired, constructed, expanded over 110
facilities

18. Community Facility Direct Loan,
Guaranteed Loan & Grant Program
• 20,000 population or less
• For Municipalities, Counties, Non-Profits,
Tribal Entities
• Project can receive combined
funding…loan/grant combos
• Hospitals, Police, Fire, Rescue, Municipal
Buildings, Jails, Childcare, Farmers Markets,
Libraries, Computer Labs, Dormitories

19. Community Facility Direct Loan,
Guaranteed Loan & Grant Program
• Since 2008….
– Over $37,000,000 obligated in loans &
grants

20. 9000 series Energy
Programs
• 9007 - Rural Energy for America
Program (R E A P)
• 9005 - Payments to Eligible Advanced
Biofuel Producers

21. 9007 – R E A P
• Grants & Guaranteed Loans
• “For Profit” companies & Ag Producers
• Grants are 25% of eligible project
• $1,500 minimum / $250,000 maximum
• Wind, solar, HVAC, insulation,
windows…

22. Section 9005 - Payments to Eligible
Advanced Biofuel Producers
• To support and ensure an expanding production of
Advanced Biofuels
• Provide payments to Eligible Advanced Biofuel
Producers
• To promote sustainable economic development in
rural America
• To provide economic incentives for increased
production of advanced biofuel and use.

23. Section 9005 - Payments to Eligible
Advanced Biofuel Producers
• Eligible Applicants
– Advance Biofuel producers
• Rural and non rural biofuel facilities
• Foreign owned biofuel facilities

24. Section 9005 - Payments to Eligible
Advanced Biofuel Producers
• August 18, 2010 amended notice
• Allows foreign-owned and non rural to submit an
application to participate in the remaining available
funds for FY2009
• Provide 25% of the remaining available funds to
producer who submitted a request under the March
12, 2010 NOCP
• Applications from foreign-owned and non-rural
producers due September 17, 2010

25. Other Business & Community
Programs
• Value Added Producer Grants
• Rural Business Enterprise Grants
• Rural Business Opportunity Grants
• Rural Economic Development Loan &
Grants
• Rural Microentrepreneur Assistance
Grants
• Intermediary Relending Programs

26. Questions….