THE FARM SECURITY
AND RURAL INVESTMENT ACT OF 2002 Rural Development
Provisions
Eligibility of Rural Empowerment Zones
and Rural Enterprise Communities for Direct and Guaranteed Loans for
Essential Community Facilities - Section 6001 Makes rural
Empowerment Zones and Enterprise Communities eligible for Community
Facilities funds.
Water or Waste Disposal Grants -
Section 6002 Removes the current authorization level of $590 million
for water and waste disposal grants. Allows the Secretary to make grants
to qualified private nonprofit entities to capitalize revolving funds to
finance predevelopment costs and small loans for replacement of equipment,
small-scale extensions, etc., for water and wastewater projects. Extends
the program but no funds are provided.
Rural Business Opportunity
Grants - Section 6003 Extends the program but no funds are
provided.
Children's Day Care Facilities -
Section 6004 Creates a 10 percent set-aside for child care facilities
under the Community Facilities program to remain available until April 1
of each fiscal year.
Rural Water and Wastewater Circuit
Rider Program - Section 6005 Allows the program to proceed under
contract this year but provides no funding.
Multijurisdictional Regional Planning
Organizations - Section 6006 Establishes a program to provide
grants to multijurisdictional regional planning and development
organizations to pay the Federal share of the cost of providing assistance
to local governments to improve the infrastructure, services, and business
development capabilities of local governments and local economic
development organizations. Extends the program but no funds are
provided.
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Loan Guarantees for Certain Rural
Development Loans - Section 6007 Allows the Secretary to
guarantee loans for projects financed in part by the issuance of tax-
exempt bonds, in the event the IRS Code is modified.
Tribal College and University Essential
Community Facilities - Section 6008 Establishes a CF grant
program for Tribal Colleges and Universities, but provides no funding.
Emergency and Imminent Community Water
Assistance Grant Program - Section 6009 Revises the current
program to allow funding for imminent threats to water systems. Extends
the program but no funds are provided.
Water and Waste Facility Grants for
Native American Tribes - Section 6010 Authorizes $30 million per
year in grants, $30 million per year in loans, and $20 million per year in
grants to benefit Indian tribes.
Grants for Water Systems for Rural and
Native Villages in Alaska - Section 6011 Extends the
program.
Grants to Nonprofit Organizations to
Finance the Construction, Refurbishing, and Servicing of
Individually-Owned Household Water Well Systems in Rural Areas for
Individuals with Low or Moderate Incomes - Section
6012 Authorizes a grant to an intermediary to assist individuals to
obtain water well system funding. The intermediary could make loans up to
$8,000 each at a rate of 1 percent for up to 20 years. Extends the program
but no funds are provided.
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Loans and Loan Guarantees for Renewable
Energy Systems - Section 6013 Makes other renewable energy
systems, including wind energy systems and anaerobic digestors for the
purpose of energy generation, eligible under the B&I program.
Rural Business Enterprise Grants
- Section 6014 Expands eligibility under the Rural Business Enterprise
Grants program to make certain small and emerging private business
enterprises eligible.
Rural Cooperative Development
Grants - Section 6015 Extends the current program and decreases
the amount of non-federal financial support to 5 percent for 1994
institutions. The minimum matching funds level remains at 25 percent for
all other eligible applicants.
Grants to Broadcasting Systems -
Section 6016 Extends the program but no funds are provided.
Business and Industry Loan
Modifications (B&I Loans) - Section 6017
- Allows the Agency to require an
appraisal conducted by a specialized appraiser that uses standards that
are similar to standards used in the private sector.
- Limits the one-time guarantee fee
to not more than 2 percent.
Business and Industry Loan
Modifications (Cooperative Stock Purchase Program) - Section
6017
- Modifies the Cooperative Stock
Purchase Program to allow existing cooperatives to be eligible for the
program in addition to start-up cooperatives.
- Allows start-up cooperatives to
contract for services to process agricultural commodities during its
first 5 years of operation in order to provide adequate time for
planning and constructing the cooperative's processing
facility.
- Allows use of financial
information that is generally required by commercial agriculture
lenders.
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Business and Industry Loan
Modifications (Loans to Cooperatives) - Section 6017
- Allows loans to cooperatives for a
facility that is not located in a rural area if the primary purpose of
the loan is to provide value-added processing to agricultural producers
located within 80 miles of the facility, the applicant demonstrates that
the primary benefit of the loan will provide employment for residents of
a rural area, and the total amount of these guaranteed loans in any
fiscal year does not exceed 10 percent of the total amount guaranteed
for the fiscal year.
- Allows the Agency to consider the
market value of brand names, patents, or trademarks of the
cooperative.
- Allows loans to cooperatives
headquartered in a metropolitan area if funds are used for a venture
located in a rural area.
- Allows the refinancing of existing
loans with a lender if the cooperative is current and performing with
respect to the existing loan and there is adequate security for the
refinanced loan.
- Allows loans to cooperatives for
projects located in a rural area and that provides for the value-added
processing of agricultural commodities. These loans may be no more than
$40 million each.
Use of Rural Development Loans and
Grants for Other Purposes - Section 6018 Allows a borrower or
grantee under the Rural Community Advancement Program (RCAP) to use either
real property or personal property purchased with loan or grant funds from
those Rural Development programs under RCAP or proceeds from the sale of
property purchased to be used for another project that would be eligible
under any of the RCAP programs. The change will require a modification to
all RCAP programs.
Simplified Application Forms for Loan
Guarantees - Section 6019 This provision allows use of a short,
simplified, application form for B&I loan guarantees of $400,000 or
less. It gives the Agency the option to increase this limit to $600,000
beginning in FY 2004 if there is not a significant increased risk of
default on the loan. Also requires the Secretary to develop a way to
expedite the processing of water or waste disposal grant, direct loan, and
loan guarantee applications for projects under $300,000.
Definition of Rural and Rural
Area - Section 6020 Provides a general definition of rural area
for future Rural Development programs. For Business Programs (B&I
guaranteed and direct loans, RBEGs, and RBOGs) the terms ‘rural' and
‘rural area' means any area other than a city or town that has a
population of greater than 50,000 inhabitants (including the urbanized
areas contiguous and adjacent to such a city or town). For Water and Waste
Disposal Programs (grants, direct and guaranteed loans) the terms ‘rural'
and ‘rural areas' mean a city, town, or unincorporated area that has a
population of no more than 10,000 inhabitants. For Community Facility
Programs (grants, direct and guaranteed loans, extreme unemployment
grants, and out-migration grants) the terms ‘rural' and ‘rural areas' mean
a city, town, or unincorporated area that has a population of no more than
20,000 inhabitants. Also provides definitions for Multijurisdictional
Regional Planning Organizations, National Rural Development Partnership,
and the Rural Business Investment Program.
National Rural Development
Partnership - Section 6021 Authorizes the National Rural
Development Partnership (NRDP). Definitions, duties, and responsibilities
of various bodies of the NRDP as well as the Federal government are
spelled out. It codifies many current practices of the State Rural
Development Councils, adds significant new duties for the SRDCs and the
national-level office, and establishes a National Rural Development
Coordinating Committee (NRDCC). Provides no funding.
Federal Register
Notice:--"Notice Inviting Applications for Recognition as a State
Rural Development Council" TEXT / PDF / More Resources
Rural Telework - Section
6022 Creates a new program for Rural Development to pay the federal
share of the cost of establishing and operating a national rural telework
institute. Provides no funding.
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Historic Barn Preservation -
Section 6023 Establishes a historic barn preservation program. Provides
no funding.
Grants for NOAA Weather Radio
Transmitters - Section 6024 Provides grants to public and
nonprofit entities, and to RUS borrowers, for the Federal share of the
cost of acquiring transmitters to increase weather radio coverage of rural
areas. Extends the program but no funds are provided.
Grants for Training Farm Workers in New
Technologies and to Train Farm Workers in Specialized Skills Necessary for
Higher Value Crops - Section 6025 Establishes a grant program to
train farm workers. Provides no funding.
Rural Community Advancement
Program - Section 6026 Eliminates the account structure,
including the national reserve account, and repeals the Rural Venture
Capital Demonstration Program.
Delta Regional Authority -
Section 6027 Makes changes to the existing authority but provides no
funding.
Northern Great Plains Regional
Authority - Section 6028 Authorizes a Northern Great Plains
Regional Authority in the states of Iowa, Minnesota, Nebraska, North
Dakota, and South Dakota. The Authority is expected to develop a series of
comprehensive coordinated plans for the economic development of the
region. The Authority may approve grants to states and public and
nonprofit entities for projects including transportation and
telecommunication infrastructure projects, business development and
entrepreneurship, and job training. Extends the program but no funds are
provided.
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Rural Business Investment
Program - Section 6029 Establishes a new Rural Business
Investment Program. The Secretary is required to enter into an interagency
agreement with another federal agency that has expertise in operating a
program of this nature. Provides $44
million in grants and such sums as necessary for the cost of guaranteeing
$280 million in debentures.
Rural Strategic Investment
Program - Section 6030 Establishes a National Board on Rural
America that will make planning grants and innovation grants to certified
Regional Investment Boards. A National Conference on Rural America is
authorized to address challenges in rural areas. Provides $100 million.
Federal Register Notice:
"Solicitation of Applicants for Membership on a National Board on
Rural America" PDF* / TEXT Candidates
Solicited for National Board on Rural America
Full Funding of Pending Rural
Development Loan and Grant Applications - Section 6031 Funds pending
applications for water and waste disposal system grants and loans,
with priority to water systems. Applications in the preapplication phase
are not eligible for funding under this provision. The funds in the
account established under this section will be available only after funds
appropriated in the FY 2002 appropriations act for these loans and grants
have been exhausted. Provides $360
million.
Veneman
Announces More Than $700 Million in Economic Development Projects for
Rural Communities List of Water and Waste Disposal Projects
Funded: HTML
(486 Kb) / PDF
(36 Kb)
Guarantees for Bonds and Notes Issued
for Electrification or Telephone Purposes - Section
6101 Authorizes the Secretary to guarantee payments on bonds or notes
issued by cooperatives, or other lenders organized on a not-for-profit
basis, if the proceeds of the bonds or notes will be used to make loans
for any electrification or telephone purpose eligible for assistance under
the Rural Electrification. Provides no funding.
Expansion of 911 Access -
Section 6102 Provides telephone loans to State and local governments,
Indian tribes, and other public entities for facilities and equipment to
expand 911 access and integrated emergency communications systems in rural
areas. Provides no funding.
Enhancement of Access to
Broadband Service in Rural Areas - Section 6103 Provides
loans and loan guarantees at 4 percent, or market rate interest, to
construct, improve, and acquire facilities and equipment to provide
broadband service to rural communities with less than 20,000 residents.
Provides $100 million in mandatory
money - $20 million per in FYs 2002 through 2005 and $10 million
per year in FYs 2006 and 2007.
Veneman
Announces $11.3 Million in Broadband Technology Grants / Recipients
List Dorr Presents
Technology Infrastructure Funding at Rural Utah Business Technology
Conference Veneman
Announces $20 Million in Broadband Technology Grants / Recipients
List Rural
Broadband Loan and Loan Guarantee Program Information RUS Rural
Broadband Access Program Website (Application and Procedures
Guides) Rural Broadband Access Loans and Loan Guarantees
Final Rule: PDF* /
TXT Rural Broadband Access Loans and
Loan Guarantees Application Deadline Notice: PDF
/ TXT Rural Broadband Access Program
Announcement: Webcast**
/ Webcast
Transcript Veneman Launches
$1.4 Billion Program to Expand Telecommunication and Broadband Technology
in Rural America Comments
on Rural Broadband Access submitted at the Public Meeting Notice of Public Meeting on Rural Broadband Access PDF
/ TXT
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Alternative Agricultural Research and
Commercialization Corporation - Section 6201 Repeals the
corporation.
Rural Electronic Commerce Extension
Program - Section 6202 Establishes a program to expand and
enhance electronic commerce practices and technology for use by small
businesses and microenterprises in rural areas. Provides no funding.
Telemedicine and Distance Learning
Services in Rural Areas - Section 6203 Extends the Distance
Learning and Telemedicine program.
SEARCH Grants for Small
Communities - Sections 6301 - 6304 Establishes a new grant
program administered by Rural Development State Directors utilizing the
advice of an independent citizens' council. Use limited to small
communities with populations under 2,500 for the purpose of providing
assistance with initial feasibility and environmental compliance for rural
development projects. Up to $1,000,000 would be available to each State
for SEARCH grants. Provides no funding.
Value-Added Agricultural Product Market
Development Grants - Section 6401 Establishes a program to fund
projects that help increase agricultural producers' share of the food and
agricultural system. The Secretary is expected to consider applications
for projects from a variety of agricultural sectors such as renewable
energy, wineries, high value products from major crops, agri-marketing
ventures, and community supported agricultural projects. A portion of the
funds will be to fund an Agricultural Innovation Center Demonstration
Program. Provides $40 million per
year in FYs 2002 through 2007.
Federal Register Notice:
"Notice Inviting Applications for the Value-Added Producer Grants
Program" PDF /
TEXT Federal Register Notice:
"Value-Added Producer Grants and Ag Innovation Centers Proposed
Rule" PDF*
/ TEXT Notice of
Funding for the Value-Added Ag Product Market Development Grant
Program Veneman Makes
$33 Million in Grants Available to Promote Energy, Value-Added
Ventures
Agriculture Innovation Center
Demonstration Program - Section 6402 Establishes “Agricultural
Innovation Centers” to provide agricultural producers with technical
assistance and applied research that will help their businesses become
more effective in marketing value-added agricultural commodities. Not more
than 5 centers would be established in the first year of the program; and
not more than 10 in the second year. Provides up to $15 million - $3 million
in FY 2002 and $6 million per year in FYs 2003 and 2004.
Federal Register Notice:
"Invitation to Apply for Agriculture Innovation Center Demonstration
Program Grants" PDF / TEXT Federal Register
Notice: "Notice Inviting Applications for a University
Value-Added Research Grant" PDF /
TEXT Transcript of
Agriculture Innovation Center Demonstration Program Public Meeting
(PDF file) USDA to
Hold Public Meeting on Agricultural Innovation Center Demonstration
Program Federal Register
Notice: "Notice of a Public Meeting on the Agriculture
Innovation Center Demonstration Program" PDF
/ TEXT
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Fund for Rural America - Section
6403 Repeals the Fund.
Rural Local Television Broadcast Signal
Loan Guarantees - Section 6404 Provides loan guarantees to
provide access to signals of local television stations. Provides $80 million available upon
enactment through December 31, 2006.
Rural Firefighters and Emergency
Personnel Grant Program - Section 6405 Establishes a grant
program to provide scholarships to local government units to train
firefighters and emergency medical personnel in firefighting, emergency
medical practices, and responding to accidents involving hazardous
material and bio-agents. Funds can also be used to establish training
facilities. Provides $10 million
per year in FYs 2003 through 2007.
Sense of Congress on Rural Policy
Coordination - Section 6406 Creates an intergovernmental rural
policy working group.
Energy Audit and Renewable Energy
Development Program - Section 9005 Establishes a competitive
grant program to eligible entities to administer energy audits and
renewable energy development assessments for farmers, ranchers, and rural
small business. Provides no funding.
Renewable Energy Systems
and Energy Efficiency Improvements - Section
9006 Establishes a grant, loan, and loan guarantee program to assist
eligible farmers, ranchers, and rural small businesses in purchasing
renewable energy systems and for making energy efficiency. Provides $23 million per year in FYs 2003
through 2007.
USDA
Announces Over $21 Million to Support Rural Renewable Energy and Energy
Efficiency Efforts USDA
Extends Deadline for $23 Million in Renewable Energy Grants Federal Register Notice
Clarifying and Extending Application Deadline for Grant Program:
PDF* /
TEXT Rural
Business-Cooperative Service Renewable Energy Site (Technical
Resources) Federal Register Notice Announcing Grant
Program: TEXT /
PDF Veneman
Announces $44 Million in Grants for Renewable Energy
Initiatives New Program Launched: Renewable
Energy and Energy Efficiency Program Public
Comments on the Rural Renewable Energy Program Rural
Renewable Energy Systems Meeting Webcast*
(Real Player format) Meeting
Transcript: PDF**
/ TEXT Federal Register Notice
Soliciting Comments: PDF / TEXT USDA
to Hold Public Meeting on Expanding Rural Renewable Energy Systems
* Streaming Audio/Video presentations require the Real
Player, QuickTime
Player or Windows Media
Player ** PDF files require the Adobe Acrobat
Reader. .
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