Rural Business & Cooperative Guaranteed Loans and Grants Program. Program objectives include the improvement of rural employment, and to develop or finance rural businesses. This is accomplished by bolstering the existing credit structure via loan guarantees. This program is also known as the rural business and industry program. Funds may be used to purchase a business slated to close, buy equipment, buildings or land, prevent loss of employment opportunities, or expand employment opportunities.

U.S. Department of Agriculture, Rural Development. 

http://www.rurdev.usda.gov/ 

The Guarantee Loan Program includes $130 million and the Grant Program includes $20 million.

Individual state allocations have not yet been released by USDA. However, based on previous years percentages of the national total, it is estimated New York will be eligible for approximately $22,000,000 in guaranteed loans and $902,000 in grants.

Cooperative organizations, corporations, partnerships, nonprofits, tribal organizations, public bodies, or individuals involved in business. The program is not intended for marginal or substandard loans or for the relief of lenders having such loans.

USDA can guarantee loans within the range of 60% to 80%, depending upon the amount, which are made and serviced by banks, savings and loans, mortgage companies, insurance companies, and other institutions. In addition, it is common for Rural Development to combine loan guarantees and grants for a specific project. Loans must be secured by collateral and the discounted collateral value will normally be at least equal to the loan amount. Applications are handled directly by 10 USDA field offices in NY.

Continuous through September 30, 2010. 

Semi–annual financial status reports and performance reports as well as a final report are required.

Empire State Development Corporation

www.empire.state.ny.us

Christopher Walsh