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Rural Business Development Grant (RBDG) Program Presented by Scott Sutherland and Laurie Anderson ---PAGE BREAK--- RD Programs • Affordable Housing • Business & Economic Development • Community Infrastructure ---PAGE BREAK--- Rural Business Development Grant (RBDG) Program 4280 - Subpart E ---PAGE BREAK--- • The purpose of the RBDG Program is designed to provide assistance, technical assistance and training for small businesses in rural areas. • A small business is defined as a business with 50 (or fewer) new employees, and less than $1 million in gross revenue. • RBD Grants are for funding various projects in rural areas to eligible entities. This is our most flexible grant program; and applications are competitive. RD RBDG Instruction 4280-E: RBDG NOSA: FY21 RBDG NOSA.pdf RBDG website: Purpose, 4280.401 ---PAGE BREAK--- • Applicant type must serve rural areas, and must be one of the following: • Public body/government entity • Indian Tribe • Nonprofit entity • Institutions of higher education --Note: Cooperatives are not eligible for this program, unless organized as a private nonprofit corporation. Eligible Applicants, 4280.416 ---PAGE BREAK--- Funds must be used for projects that benefit rural areas or towns of 50,000 or less. These are competitive grants. Check eligible areas: Eligible Area, 4280.403 ---PAGE BREAK--- • A nonprofit may apply for grant funds to be used on projects to benefit small and emerging businesses in rural areas, by: • technical assistance (consultant for a specific project/training) • project planning (specific project only) • feasibility studies (specific project only) • business counseling/training • market research • equipment How Funds May Be Used, 4280.417 ---PAGE BREAK--- Community economic development – the nonprofit or government entity may apply on their own behalf for… • Feasibility studies and business plans • Leadership and entrepreneur training • Rural business incubators • Strategic business planning, consistent with Rural Development & Community Economic Development strategic plans (refer to Instruction 4280-E, 4280.417) How Funds May Be Used (cont.) ---PAGE BREAK--- • Grants may range from $3,000 up to $500,000; in accordance with regulation • Wyoming’s allocation approx. $130,000, per fiscal year • Most grants are in the $20,000 - $40,000 range Funding Request Limit, 4280.435 ---PAGE BREAK--- • Duplicate current services or substitute support previously provided. • Pay costs of preparing the application package for funding under this program or any other program. • Pay costs for any expenses incurred prior to receipt of a full application. • Fund political activities. • Pay for assistance to any private business enterprise which does not create and/or support jobs in the United States. Ineligible Use of Funds, 4280.423 ---PAGE BREAK--- • Pay for any judgment or debt owed to the United States. • Fund agricultural production. • Finance comprehensive area-wide type planning. • Make loans when the rates, terms & charges for such loans are not reasonable or would be for ineligible purposes. • For programs operated by cable television systems. • Fund a part of a project that is dependent on other funding, unless there is a firm commitment of the other funding to ensure completion of the project. Ineligible Use of Funds (cont.) ---PAGE BREAK--- • Pay for technical assistance that duplicates assistance provided by the U.S. Forest Service. • Project that would result in the transfer of existing employment or business activity more than 25 miles from its existing location. • To fund cooperatives (unless it’s a nonprofit). Ineligible Use of Funds (cont.) ---PAGE BREAK--- Wyoming Women’s Business Center • Albany County • $66,113 grant • Hire training coordinator, website contractor and photographer for marketing and technical assistance Success Story ---PAGE BREAK--- Powell Economic Partnership, Inc. • Park County • $49,974 grant • Purchase innovation equipment to lease to the Powell Marketplace, a local startup nonprofit corp. Success Story ---PAGE BREAK--- Wyoming Agricultural Leadership Council • Laramie County • $15,000 grant • Fund the Wyoming Agriculture Leadership Mentoring Program, which pairs up with Wyoming Leadership Education and Development (L.E.A.D.) alumni to provide networking and training opportunities for rural farmers, ranchers and agribusiness professionals. Success Story ---PAGE BREAK--- Application - Scoring Tips ---PAGE BREAK--- Applicant must have sufficient financial strength & expertise in activities proposed in the application to ensure accomplishment of the described activities and objectives, within their Scope of Work. Important note: first-time applicants can receive additional points. Financial Strength & Expertise, 4280.416 ---PAGE BREAK--- There are no cost-sharing requirements, however, if RD’s portion of the project is: Less than 20 percent - 30 points; 20% but less than 50 percent - 20 points; 50% but less than 75 percent - 10 points; or 75 percent or more - 0 points. Matching / Leveraging, 4280.435 ---PAGE BREAK--- Applicant contribution: $ 40,000 (applicant cash) $ 20,000 (applicant in-kind) State funds: $ 30,000 RD Grant amount request: $110,000 Total project cost: $ 200,000 Rural Development portion / Total Cost: $110k/200k = 55% 10 points can be awarded: Option 50% but less than 75 percent - 10 points. RBDG Scoring, 4280.435(a) – Example (leveraging): ---PAGE BREAK--- Trauma. A trauma event due to a major natural disaster that occurred no more than 3 years prior to submission of the grant application - 15 points. • Only FEMA declared disaster areas may have points awarded. • How to document: provide the FEMA Designation number to have points awarded under this section. • Reference FEMA website: RBDG Scoring, 4280.435(b)(1) Trauma ---PAGE BREAK--- Economic distress. The community has suffered a loss of 20 percent or more in their total jobs caused by the closure of a military facility, or other employers within the last 3 years - 15 points; Document: math calculations to evidence the 20% loss; and provide back-up data for calculations. State labor market data provides job detail for labor markets. Reference: RBDG Scoring, 4280.435(b)(2) Economic Distress ---PAGE BREAK--- Long-term poverty*. Has experienced long-term poverty, as determined by USDA’s Economic Research Service-10 points; Population decline*. Has experienced long-term population decline-10 points; as demonstrated by the latest three decennial censuses. How to document: Provide population data from the last 3 census periods (30 yrs.) and show the math to document the decline. Search Census.gov for population information. *(No counties in Wyoming qualify at this time, under 4280.435 & RBDG Scoring, 4280.435(b) Poverty, Population Decline ---PAGE BREAK--- Population. Proposed Project(s) needs to be located in a community of: Under 5,000 population - 15 points; Between 5,000 and less than 15,000 population - 10 points; or Between 15,000 and 25,000 population - 5 points. When the project serves multiple locations or large geographical areas such as a county, the population should be determined by the largest eligible community in the area to be served, and award points accordingly. RBDG Scoring, 4280.435(c) Population ---PAGE BREAK--- Use reliable published data: • Match calculation to evidence of how you calculated the percentage must be provided. • Cite the community income and source of data. • Cite the statewide source for the data. • Back-up data must include all data sources, plus your weighted average if a multi-county project. RBDG Scoring, 4280.435(e) Income: How to Document ---PAGE BREAK--- Experience. Applicant has evidence of successful experience in the type of activity proposed: 10 or more years-30 points At least 5 years but less than 10 years-20 points At least 3 but less than 5 years-10 points; or At least 1 but less than 3 years-5 points Evidence of successful experience may be a description of experience supplied and certified by the applicant based upon its current employees’ resumes; or how long entity has been in business. RBDG Scoring, 4280.435(f) Experience ---PAGE BREAK--- • Within the Scope of Work, include a description of the applicant entity experience and qualifications as they pertain to the project. • Review and comment on key staff resumes to document staff qualifications. Experience: How to Document ---PAGE BREAK--- Small business start-up or expansion. Applicant has evidence that small business development will be supported by startup or expansion as a result of the activities to be carried out under the grant. Written evidence of commitment by a small, or a Small and Emerging Business must be provided to the Agency; and must include the number of jobs that will be supported and created. – 5 points for each letter/written evidence (max 25 points). Generic or duplicated letters are not acceptable. Letters must address the specific business, the connection to the project activities, and further provide information relative to job creation. RBDG Scoring, 4280.435(g) Evidence of Business ---PAGE BREAK--- (h)Jobs created or supported. The anticipated development, expansion, or furtherance of business enterprises as a result of the proposed Project will create and/or support existing jobs associated with the affected businesses. Number of jobs must be evidenced by a written commitment from the business(s) to be assisted. Job creation is a necessary component of this grant. one job for less than $5,000-25 points; one job for $5,000 but less than $10,000-20 points; one job for $10,000 but less than $15,000-15 points; one job for $15,000 but less than $20,000-10 points; or one job for $20,000 but less than $25,000-5 points. RBDG Scoring, 4280.435(h) Jobs Impact ---PAGE BREAK--- Size of Grant Request. Requests less than $100,000 – 25 points. $100,000-$200k – 15 points; or from $200k - $500k – 10 points. Indirect cost. Applicant is not requesting grant funds to cover their administrative or indirect costs – 5 points. RBDG Scoring, 4280.435 & Amount of Grant Request, Indirect Costs ---PAGE BREAK--- • First you will need to: o Obtain a Data Universal Number (DUNS) at before pre-registering with SAM.gov. Free. o Pre-register with the System for Award Management (SAM) at www.SAM.gov Free. o Be sure to be filed as a legal entity with the Secretary of State of Wyoming at --If your data already exists in these systems, you will not need to re-register, however annual updates/renewals are necessary. Application Toolkit. The sooner the better!!! ---PAGE BREAK--- Then proceed with Wyoming RD’s application toolkit: • A complete application must be submitted by March 31, 2021 or it will not be considered for funding. Paper applications mailed, shipped or sent overnight must be received by 4:30 PM MST, March 31, 2021. You may also hand-deliver your complete application to any of our field offices, and it must be received by close of business on this deadline date. • Late applications are not eligible. Application Toolkit (continued) ---PAGE BREAK--- Contact Information Assistance under USDA Rural Development programs is available to applicants in areas designated as “rural”. Under law, the definition of “rural area” is different for each program. Contact your Wyoming USDA Rural Development office for more information. BP Program Assistant/Specialist, Laurie Anderson, [PHONE REDACTED] / [EMAIL REDACTED] Business Programs Director, Scott Sutherland, [PHONE REDACTED] / [EMAIL REDACTED] www.rd.usda.gov/wy We look forward to building a relationship with you! USDA is an equal opportunity provider, employer, and lender.