Nebraska State Director Maxine Moul today announced that Rural Development is accepting applications for loans to support community development projects, business startups, growth and job creation.
Assistance is being provided through two USDA Rural Development programs: the Intermediary Relending Program (IRP) http://www.rd.usda.gov/programs-services/intermediary-relending-program and the Rural Microentrepreneur Assistance Program (RMAP) http://www.rd.usda.gov/programs-services/rural-microentrepreneur-assistance-program . The 2014 Farm Bill reauthorized both programs through 2018.
Under IRP, USDA lends money to economic development intermediaries (non-profits and cooperatives, public agencies and Federally-recognized Tribes) who re-lend money to rural businesses (ultimate recipients) that might not otherwise be able to obtain such financing. The program supports sustainable economic development and helps create or retain jobs in disadvantaged and remote communities. USDA encourages intermediaries to work with state and regional representatives and with other public and private organizations that can provide complementary resources.
Under RMAP, USDA provides loans and grants to Microenterprise Development Organizations (MDOs) to help microentrepreneurs — very small businesses with 10 or fewer employees — access microloans to start or grow businesses. MDOs use the loan funds to establish revolving loan funds to provide micro-loans, typically $5,000 to $50,000, to rural microenterprises. Grant funds are used to provide training and technical assistance to eligible rural microentrepreneurs.
The Southeast Nebraska Development District (SENDD) in Lincoln, has used $974,000 of IRP loan funds to make 22 loans. The success of these loans has created 208 new jobs and retained 84 job positions in a 15 county area of southeast Nebraska. The types of businesses that SENDD has assisted are varied but include, among others: fur harvesting business; funeral home; custom molding business; photography studio; welding and manufacturing business; custom kitchen installation/design; custom cabinetry; construction business; book bindery; recycling business; pet food processing; meat locker; chiropractor; fabrication; dance studio; marina, taxidermist, food product production/distribution business; auto repair; telecommunications; and a grocery store.
Rural Development provided $500,000 in an RMAP loan and $105,000 in RMAP grant funds to Northeast Economic Development, Inc. a non-profit located in Norfolk serving a 25 county area in northeast and north central Nebraska. Since January 2011 Northeast Economic Development has made 18 micro-loans, creating 39 new jobs and retaining 33 job positions. Micro-loans were provided to minorities including women, Hispanics, American Indians, veterans and disabled entrepreneurs. Grant funds have provided technical assistance to 460 microentrepreneurs seeking to build management skills, prepare cash flow, budget and other loan application documentation, to make informed decisions to prepare for future loans.
IRP and RMAP applications received by the end of each calendar quarter are reviewed for funding consideration. The next quarterly deadline is June 30; the following quarters will be September 30, December 31 and March 31. Maximum IRP loan request is $1 million. Minimum RMAP loan amount is $50,000, the maximum is $500,000.
To discuss a proposed project or to obtain application resources, please contact one of the following Business Program Specialists:
* Marla Marx, marla.marx@ne.usda.gov or 308-632-2195 extension 1132 – panhandle including northwest and southwest counties
* Kelley Messenger, kelley.messenger@ne.usda.gov or 308-237-3118 extension 120 – north and south central counties
* Bill Sheppard, bill.sheppard@ne.usda.gov or 402-371-5350 extension 1004 – northeast and southeast counties
* Deborah Drbal, deborah.drbal@ne.usda.gov or 402-437-5558
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.