U.S. Department of Agriculture-Rural Development Alaska State Director Jim Nordlund today announced that USDA is accepting applications for grants to help rural cooperatives develop new markets for their products and services. USDA is making the grants available to non-profit corporations and institutions of higher education through the Rural Cooperative Development Grant (RCDG) program.
USDA’s Rural Cooperative Development Grant program improves economic conditions in rural areas by helping individuals and businesses start, expand or improve the operations of rural cooperatives and other mutually-owned businesses through cooperative development centers. Other eligible grant activities may include conducting feasibility studies and creating business plans.
"Cooperative organizations are important catalysts for economic growth and job creation in rural America,” Nordlund said. "The lack of investment capital is often the key factor impeding many rural areas from economic prosperity. The investments that USDA is making available will help organizations create and establish cooperatives, expand existing ones, drive sales and marketing opportunities, and facilitate the development of business opportunities in rural Alaska."
For example, earlier Rural Cooperative Development Grant funding from USDA helped open the doors of the first co-op food store in Alaska. The University of Alaska’s Cooperative Development Center used funding from an RCDG grant to provide technical assistance to the Fairbanks Community Cooperative Market. Since it opened in the spring 2013, the Fairbanks Community Cooperative Market has grown to be one of the largest purchasers of locally produced food in its region. Expanding the sale of local food keeps more money in circulation locally and provides healthy food options which contribute to the overall quality of life in Fairbanks.
USDA is making up to $5.8 million in grants available in Fiscal Year 2015. One-year grants up to $200,000 are available. In most cases, grants may be used to pay for up to 75 percent of a project’s total costs. Recipients are required to match 25 percent of the award amount. The grants will be awarded prior to September 30, 2015. The recipients will have one year to utilize the awarded funds.
The application deadline is July 30, 2015. For additional information, see Page 34129 of the June 15, 2015 Federal Register or contact Renee Johnson, Director of our Business Programs at: (907) 761-7712, or: renee.johnson@ak.usda.gov.
Since 2009, USDA-Rural Development has invested over $1.5 billion in more than 220 rural Alaskan communities. These investments in housing, community facilities, business, energy, water and sewer, telecom and electric have helped to grow rural Alaska’s economy and enhance the quality of life for its residents.