Agenda 07/12/2016 Item #16F 9 Proposed Agenda Changes
Board of County Commissioners Meeting
July 12, 2016
Move Item 16F8 to Item 11F: Recommendation to accept the 2016 Contractor Feedback
Survey that was authorized by the Board of County Commissioners on February 9,2016.
(Commissioner Nance's request)
Move Item 16F9 to Item 11G: Recommendation
to adopt a resolution approving the submittal of a
Rural Business Development Grant (RBDG)
application to the United States Department of
Agriculture (USDA) for the Immokalee Culinary
Accelerator for the maximum amount of
$200,000 and incorporating specified grant
provisions. (Commissioner Taylor's request)
Deny Item 16J3 until such time as the Clerk certifies that the payables presented in this
report have been pre-audited as previously specified by the Board: To provide to the
Board a "Payables Report" for the period ending July 6,2016 pursuant to the Board's
request. (Staff's request)
Withdraw Item 17B: This item continued from the June 28,2016 BCC Meeting.
Recommendation to consider adoption of an Ordinance establishing the "Longwater"
Community Development District(CDD) pursuant to Section 190.005(2), Florida Statutes.
(Petitioner's request)
Time Certain Items:
Item 11F to be heard at 10:00 a.m.
Item 11G to be heard at 11:30 a.m.
7/12/2016 8:29 AM
7/12/2016 16.F.9.
EXECUTIVE SUMMARY
Recommendation to adopt a resolution approving the submittal of a Rural Business
Development Grant (RBDG) application to the United States Department of Agriculture
(USDA) for the Immokalee Culinary Accelerator for the maximum amount of $200,000
and incorporating specified grant provisions.
OBJECTIVE: To obtain approval for items requested by the USDA for the Rural Business
Development Grant (RBDG) grant. The RBDG grant will be used to fund equipment for the
Immokalee Culinary Accelerator.
CONSIDERATIONS: On May 10, 2016, Agenda Item 16.F.3, the Board approved the after-
the-fact submission of the RBDG grant application. The USDA has now requested a resolution
which formalizes the application and incorporates the following five provisions into the grant
application:
1) Authorization to apply for the Maximum grant of$200,000;
2) Authorization for the County Manager to sign the application and all related documents;
3) The County's acceptance of the provisions of RDBG Instruction 4280-E;
4) Notification of the County's intent to leverage $1.3 million of the State appropriation for the
Immokalee Culinary Accelerator project; and
5) The County has legal authority to enter into a grant agreement.
Staff researched federal funding opportunities and believes that the $200,000 RBDG Grant
would leverage the FY 2017 State appropriation in which $1,300,000 will be allotted for the
Immokalee Culinary Accelerator. Proceeds of the RBDG Grant would be used to purchase
equipment for the Immokalee Culinary Accelerator. The Immokalee Culinary Accelerator will
offer a culinary food accelerator equipped with commercial kitchen equipment, food product
development and testing equipment, and cold food storage, meeting all FDA, USDA and state
applicable requirements.
FISCAL IMPACT: The maximum grant request permitted is $200,000. The total project cost
is expected to be approximately $1,300,000. The County will be requesting that State funding to
Economic Incubators Inc. be utilized as the local match. The local match will come from
Economic Incubators Inc.'s FY2017 State Appropriation
GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the
Economic Element of the Collier County Growth Management Plan which states: "Collier
County will support programs which are designed to promote and encourage the recruitment of
new industry as well as the expansion and retention of existing industries in order to diversify
the County's economic base."
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as
to form and legality, and requires majority vote for approval. -JAK
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RECOMMENDATION: To adopt a resolution approving the submittal of a Rural Business
Development Grant (RBDG) application to the United States Department of Agriculture
(USDA) for the Immokalee Culinary Accelerator for the maximum amount of $200,000 and
incorporating specified grant provisions.
Prepared by: Jace Kentner, Interim Director, Office of Business and Economic Development
Attachments:
1. Resolution
2. 4280e Grant Intructions
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.F.16.F.9.
Item Summary: Recommendation to adopt a resolution approving the submittal of a
Rural Business Development Grant (RBDG) application to the United States Department of
Agriculture (USDA)for the Immokalee Culinary Accelerator for the maximum amount of
$200,000 and incorporating specified grant provisions.
Meeting Date: 7/12/2016
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, County Managers Office
7/5/2016 4:23:14 PM
Submitted by
Title: Executive Secretary to County Manager, County Managers Office
Name: BrockMaryJo
7/5/2016 4:23:16 PM
Approved By
Name: Joshua Thomas
Title: Grants Support Specialist, Grants Management Office
Date: 7/6/2016 8:51:04 AM
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 7/6/2016 12:57:09 PM
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RESOLUTION NO. 2016 -
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AUTHORIZING THE COUNTY MANAGER,
ON BEHALF OF THE BOARD, TO APPLY FOR A MAXIMUM USDA RURAL
BUSINESS DEVELOPMENT GRANT (RBDG) OF $200,000 FOR AN ELIGIBLE
RBDG PROJECT IN IMMOKALEE; FURTHER AUTHORIZING THE COUNTY
MANAGER TO SIGN ALL RELATED DOCUMENTS TO CONSUMMATE THE
USDA RBDG GRANT; AGREEING TO ABIDE BY THE PROVISIONS OF
RURAL BUSINESS DEVELOPMENT GRANT INSTRUCTION 4280-E;
AGREEING THAT THE FY 2017 STATE APPROPRIATION OF $1,300,000
WILL BE LEVERAGED TO MAXIMIZE RESOURCES AND FUNDING
AVAILABLE TO THE IMMOKALEE CULINARY ACCELERATOR
PROJECT; AND AFFIRMING THAT COLLIER COUNTY HAS THE LEGAL
AUTHORITY TO ENTER INTO THE RDBG GRANT AGREEMENT.
WHEREAS, the Immokalee Culinary Accelerator will offer an agribusiness focused
culinary food accelerator equipped with commercial kitchen equipment, food product
development and testing equipment, and cold food storage, which the County desires to purchase
with the proceeds of this RBDG grant; and
WHEREAS, Collier County submitted a grant application to the USDA for a Rural
Business Development Grant(RBDG) for the maximum amount of$200,000; and
WHEREAS, Collier County desires to leverage the FY 2017 State appropriation in
which $1,300,000 will be allotted for the Immokalee Culinary Accelerator; and
WHEREAS, the USDA RBDG formal application requires the County to agree to the
provisions of Rural Business Development Grant Instruction 4280-E; and
WHEREAS, the USDA RBDG formal application requires a "Resolution authorizing
person(s) to sign all related documents to consummate the grant and authorizing the
application of the RBDG."
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
1. The Board of County Commissioners hereby authorizes the County Manager, on
behalf of the Board, to apply for a maximum USDA Rural Business Development Grant in the
amount of$200,000 for an eligible RBDG project in Immokalee.
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2. To that end, the Board of County Commissioners further authorizes the County
Manager to sign all related documents to consummate the USDA Rural Business Development
Grant.
3. The Board of Collier County Commissioners agrees to abide by the provisions of
Rural Business Development Grant Instruction 4280-E.
4. The Board of Collier County Commissioners further agrees that the FY 2017 State
appropriation of $1,300,000 will be leveraged to maximize resources and funding available
to the Immokalee Culinary Accelerator project.
5. The Board of Collier County Commissioners hereby affirms that Collier County
has the legal authority to enter into the Rural Business Development Grant agreement.
6. This Resolution shall take effect immediately upon adoption.
THIS RESOLUTION ADOPTED after motion, second and majority vote favoring
same, this 12th day of July, 2016.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA
By: By:
, Deputy Clerk DONNA FIALA, CHAIRMAN
Approved as to form and legality:
Jeffrey A. Klatzkow, County Attorney
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RD Instruction 4280-E
Table of Contents
Page 1
Part 4280 - LOANS AND GRANTS
Subpart E - Rural Business Development Grants
Table of Contents
Sec. Page
4280.401 Purpose 1
4280.402 [Reserved] 1
4280.403 Definitions 1
4280.404 Exception authority 5
4280.405 Review or appeal rights 5
4280.406 Conflict of interest 5
4280.407 Statute and regulation references 6
4280.408 U.S. Department of Agriculture (USDA) Departmental
Regulations and Laws that Contain Other
Compliance Requirements 9
4280.409 [Reserved]
4280.410 Other Laws and Regulations that Contain
Compliance Requirements for this Program 9
4280.411 - Forms, guides, and attachments 12
4280.412 - 4280.414 [Reserved] 12
RURAL BUSINESS DEVELOPMENT GRANTS
4280.415 Rural Business Development Grants 12
Eligibility
4280.416 Applicant eligibility 12
4280.417 Project eligibility 15
4280.418 - 4280.420 [Reserved] 19
Funding Provisions
4280.421 Term requirement 19
4280.422 Joint funding 20
4280.423 Ineligible uses of grant funds 20
4280.424 - 4280.426 [Reserved] 23
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RD Instruction 4280-E
Table of Contents
Page 1
Sec. Page
Applying for a Grant
4280.427 Application 23
4280.428 - 4280.429 [Reserved] 25
4280.430 Notification of decision 25
4280.431 - 4280.433 [Reserved] 25
Processing and Scoring Application
4280.434 General processing and scoring Provisions 25
4280.435 Scoring criteria 26
4280.436 - 4280.438 [Reserved] 31
Grant Awards and Agreements
4280.439 Grant awards and agreements 31
4280.440 - 4280.442 [Reserved] 32
Post Award Activities and Requirements
4280.443 Grant monitoring and servicing 32
4280.444 4280.447 [Reserved] 32
4280.448 Transfers and assumptions 32
4280.449 Reporting 33
4280.450 Audit requirements 36
4280.451 Grant servicing 36
4280.452 Programmatic changes 37
Revolving Loan Fund Grants
4280.453 Revolving loan fund (RLF) grants 37
4280.454 Other regulations agency employees should reference 37
4280.555 Remedies for Noncompliance (2 CFR 200.338) 40
4280.456 - 4280.499 [Reserved] 40
4280.500 OMB Control Number 40
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RD Instruction 4280-E
§ 4280.401 Purpose.
This subpart implements the RBDG program administered by the
Agency. Grants made under this subpart will be made to eligible
entities for use in funding various business opportunity and business
enterprise Projects that serve Rural Areas.
§ 4280.402 - [Reserved]
§ 4280.403 Definitions.
Administrator. The Administrator of RBS or designees or successors.
Agency. Rural Business-Cooperative Service (RBS) or successor.
Agriculture Production. The cultivation, production, growing,
raising, feeding, housing, breeding, hatching, or managing of
crops, plants, animals or birds, either for fiber, food for
human consumption, or livestock feed.
Arm's-length Transaction. The sale, release, or disposition of assets
in which the title to the property passes to a ready, willing, and able
disinterested third party that is not affiliated with or related to and
has no security, monetary or stockholder interest in the grantee or
transferor at the time of the transaction.
Business Support Centers. Centers established to provide assistance to
businesses in such areas as counseling, business planning, training,
management assistance, marketing information, and locating financing for
business operations. The centers need not be located in a Rural Area,
but must provide assistance to businesses located in Rural Areas.
Conflict of interest. When the grantee' s employees, Board of
Directors, or their immediate families have a legal or personal
financial interest in the recipient (s) receiving the benefits
or services of the grant. Agency employees should refer to 2
CFR 400 . 1 to 400 . 18 .
Distribution: WSAL Loans and Grants
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RD Instruction 4280-E
§ 4280.403 (Con.)
Corporation. A body of persons granted a charter legally by a
state government or federally recognized Indian Tribe
recognizing it as a separate entity having its own rights,
privileges, and liabilities distinct from its members.
Departmental Grant Regulations . The USDA grant regulations at
2 CFR Chapter IV.
Economic Development. The industrial, business and financial
augmentation of an area as evidenced by increases in total income,
employment opportunities, value of production, duration of employment,
or diversification of industry, reduced outmigration, higher labor force
participation rates or wage levels or gains in other measurements of
economic activity, such as land values.
Indian Tribe (Tribal) . Indian Tribes on Federal and State reservations
and other federally recognized Indian Tribal groups.
Industrial Site. The development of undeveloped real estate for uses
which will assist Small and Emerging Businesses.
Long-term. The period of time covered by the three most recent
decennial censuses of the United States to the present.
Nonprofit. An entity chartered as a nonprofit organization under
applicable State or Tribal law.
Office of Management and Budget regulations. The regulations of the
Department of the Office of Management and Budget which
includes such items as uniform administrative requirements,
cost principles, and audit requirements for Federal awards.
Some examples of such regulations include, but are not limited
to 2 CFR 200 and 2 CFR 400.
Other Business Development. Any business related activity that will
assist Small and Emerging Businesses and may include but is not limited
to business incubators, business training centers, and other training
activity which leads directly to Small and Emerging Business
development.
Planning. A process to coordinate Economic Development activities,
develop guides for action, or otherwise assist local community leaders
in the Economic Development of Rural Areas.
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RD Instruction 4280-E
§ 4280.403 (Con.)
Priority Communities. Communities targeted for Agency assistance as
determined by the U.S. Department of Agriculture Under Secretary for
Rural Development that are experiencing trauma due to natural disasters
or are undertaking or completing fundamental structural changes, have
remained persistently poor, or have experienced Long-Term population
decline or job deterioration.
Project. The result of the use of grant funds provided under this
subpart through Technical Assistance or Planning relating to the
Economic Development of a Rural Area; or the result of the use of
program funds (i.e. , a facility whether constructed by the applicant or
a third party made with grant fund0s, Technical Assistance, startup
operating costs, or working capital) . A revolving fund established in
whole or in part with grant funds will also be considered a Project.
When the Agency refers to grant funds in this definition, matching funds
are also included.
Public Bodies/Government Entity. Public Bodies include States,
counties, cities, townships, and incorporated towns and villages,
boroughs, authorities, districts, and education institutions organized
under State and Federal laws, and Indian Tribes.
Rural and rural area. As described in 7 U.S.C. 1991(a) (13) (A) and (D)
et seq. Any area of a State not in a city or town that has a population
of more than 50, 000 inhabitants, according to the latest decennial
census of the United States, or in the urbanized area contiguous and
adjacent to a city or town that has a population of more than 50, 000
inhabitants, and any area that has been determined to be "rural in
character" by the Under Secretary for RD, or as otherwise identified in
this definition as follows:
(1) An area that is attached to the urbanized area of a city
or town with more than 50, 000 inhabitants by a contiguous area
of urbanized census blocks that is not more than 2 census
blocks wide. Applicants from such an area should work with
their RD State Office to request a determination of whether
their project is located in a rural area under this provision.
(2) For the purposes of this definition, cities and towns are
incorporated population centers with definite boundaries,
local self government, and legal powers set forth in a charter
granted by the State.
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RD Instruction 4280-E
§ 4280.403 (Con.)
(3) For the Commonwealth of Puerto Rico, the island is
considered rural and eligible for Business Programs
assistance, except for the San Juan Census Designated Place
(CDP) and any other CDP with greater than 50, 000 inhabitants.
CDPs with greater than 50,000 inhabitants, other than the San
Juan CDP, may be determined to be eligible if they are "not
urban in character. "
(4) For the State of Hawaii, all areas within the State are
considered rural and eligible for Business Programs
assistance, except for the Honolulu CDP within the County of
Honolulu.
(5) For the purpose of defining a rural area in the Republic
of Palau, the Federated States of Micronesia, and the Republic
of the Marshall Islands, the Agency shall determine what
constitutes rural and rural area based on available population
data.
(6) The determination that an area is "rural in character"
will be made by the Under Secretary of RD. The process to
request a determination under this provision is outlined in
paragraph (6) (ii) of this definition.
(i) The determination that an area is "rural in
character" under this definition will apply to areas that
are within:
(A) An urbanized area that has two points on its
boundary that are at least 40 miles apart, which is
not contiguous or adjacent to a city or town that
has a population of greater than 150, 000
inhabitants or the urbanized area of such a city or
town; or
(B) An urbanized area contiguous and adjacent to a
city or town of greater than 50, 000 inhabitants
that is within one-quarter mile of a rural area.
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RD Instruction 4280-E
§ 4280.403 (Con.)
(ii) Units of local government may- petition the Under
Secretary of Rural Development for a "rural in character"
designation by submitting a petition to both the
appropriate Rural Development State Director and the
Administrator on behalf of the Under Secretary. The
petition shall document how the area meets the
requirements of paragraph (6) (i) (A) or (B) above and
discuss why the petitioner believes the area is "rural in
character," including, but not limited to, the area's
population density, demographics, and topography and how
the local economy is tied to a rural economic base. Upon
receiving a petition, the Under Secretary will consult
with the applicable Governor or leader in a similar
position and request comments to be submitted within 5
business days, unless such comments were submitted with
the petition. The Under Secretary will release to the
public a notice of a petition filed by a unit of local
government not later than 30 days after receipt of the
petition by way of publication in a local newspaper and
posting on the Agency's Web site, and the Under Secretary
will make a determination not less than 15 days, but no
more than 60 days, after the release of the notice. Upon
a negative determination, the Under Secretary will
provide to the petitioner an opportunity to appeal a
determination to the Under Secretary, and the petitioner
will have 10 business days to appeal the determination
and provide further information for consideration.
Small and Emerging Business. Any private and/or Nonprofit business
which will employ 50 or fewer new employees and has less than $1 million
in gross revenue; for retail operations, total sales minus cost of goods
sold minus returns or for a service organization, gross revenue minus
cost of providing service or for a manufacturing operation it will be
total sales minus cost of raw materials minus the cost of production.
For an Indian Tribal business to be considered small and emerging, its
management and Board of Directors must operate independently of the
Tribal Council. In order to be considered independent, the majority of
the Board of Directors must come from areas other than the Tribal
Council members or their families and they cannot be removed without
cause.
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RD Instruction 4280-E
§ 4280.403 (Con.)
State. Any of the 50 States, the Commonwealth of Puerto Rico, the U.S.
Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of Palau, the Federated States of
Micronesia, and the Republic of the Marshall Islands.
Technical Assistance. A function performed for the benefit of a private
business enterprise or a community and which is a problem solving
activity, such as market research, product and/or service improvement,
feasibility study, etc. , to assist in the Economic Development of a
Rural Area.
S 4280.404 Exception authority.
The Administrator may make an exception, on a case-by-case basis,
to any requirement or provision of this subpart that is not inconsistent
with any authorizing statute or applicable law if the Administrator
determines that application of the requirement or provision would
adversely affect the Government's financial interest.
5 4280.405 Review or appeal rights.
A person may seek a review of an Agency decision under this
subpart from the appropriate Agency official that oversees the program
in question or appeal to the National Appeals Division in accordance
with 7 CFR Part 11.
§ 4280.406 Conflict of interest.
(a) General. No conflict of interest or appearance of conflict
of interest will be allowed. For purposes of this subpart,
Conflict of Interest includes, but is not limited to, distribution
or payment of grant, guaranteed loan funds, and matching funds or
award of Project construction contracts to an individual owner,
partner, or stockholder, or to a beneficiary or immediate family
of the applicant or borrower when the recipient will retain any
portion of ownership in the applicant's or grantee's Project.
Grant and matching funds may not be used to support costs for
services or goods going to, or coming from, a person or entity
with a real or apparent conflict of interest. All transactions
must be Arm's-length Transactions.
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RD Instruction 4280-E
§ 4280.406 (Con.)
(b) Assistance to employees, relatives, and associates. The
Agency will process any requests for assistance under this subpart
in accordance with 7 CFR part 1900, subpart D.
(c) Member/Delegate Clause. No member of or delegate to Congress
shall receive any share or part of this grant or any benefit that
may arise therefrom; but this provision shall not be construed to
bar, as a contractor under the grant, a publicly held corporation
whose ownership might include a member of Congress so long as the
member's ownership is less than 10 percent.
§ 4280.407 Statute and regulation references.
All references to statutes and regulations are to include any and
all successor statutes and regulations.
§ 4280.408 U.S. Department of Agriculture Departmental Regulations and
Laws that Contain other Compliance Requirements.
(a) Departmental regulations. All funded under this subpart are
subject to the provisions of the Departmental Regulations, as
applicable, which are incorporated by reference herein.
(b) Equal opportunity and nondiscrimination. The Agency will
ensure that equal opportunity and nondiscrimination requirements
are met in accordance with the Equal Credit Opportunity Act, 15
U.S.C. 1691 et seq. and 7 CFR part 15d, "Nondiscrimination in
Programs and Activities Conducted by the United State Department
of Agriculture." The Agency will not discriminate against
applicants on the basis of race, color, religion, national origin,
sex, marital status, or age (provided that the applicant has the
capacity to contract) ; because all or part of the applicant' s
income derives from any public assistance program; or because the
applicant has in good faith exercised any right under the Consumer
Credit Protection Act, 15 U.S.C. 1601 et seq.
(c) Civil rights compliance. Recipients of grants must comply
with the Americans with Disabilities Act of 1990, 42 U.S.C. 12101
et seq. , Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d
et seq. , and section 504 of the Rehabilitation Act of 1973, 29
U.S.C. 794. This may include collection and maintenance of data
on the race, sex, and national origin of the recipient' s
membership/ownership and employees. The data must be available to
conduct compliance reviews.
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RD Instruction 4280-E
§ 4280.408 (c) (Con.)
(1) Initial compliance reviews will be conducted by the
Agency prior to funds being obligated.
(2) Grants will require one subsequent compliance review
following Project completion. This will occur prior to the
last disbursement of grant funds. One subsequent compliance
review is a minimum, many projects will require more than one
such as for equipment, real estate and revolving loan funds.
(d) Environmental requirements. Actions taken under this subpart
must comply with 7 CFR part 1970. Prospective applicants are
advised to contact the Agency to determine environmental
requirements as soon as practicable after they decide to pursue
any form of financial assistance directly or indirectly available
through the Agency. (Revised 04-01-16, SPECIAL PN.)
(1) Any required environmental review must be completed by
the Agency prior to the Agency obligating any funds.
(2) The applicant will be notified of all specific compliance
requirements, including, but not limited to, the publication
of public notices, and consultation with State Historic
Preservation Offices (or Tribal Historic Preservation Offices
where appropriate) and the U.S. Fish and Wildlife Service.
(3) A site visit by the Agency may be scheduled, if
necessary, to determine the scope of the review.
(4) Applications for Technical Assistance or Planning
Projects are generally excluded from the environmental review
process by 7 CFR 1970.53 provided the assistance is not
related to the development of a specific site. However, as
further specified in 7 CFR 1970.53, the grantee for a
Technical Assistance grant, in the process of providing
Technical Assistance, must consider the potential
environmental impacts of the recommendations provided to the
recipient of the Technical Assistance as requested by the
Agency and in accordance with 7 CFR part 1970. (Revised
04-01-16, SPECIAL PN. )
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RD Instruction 4280-E
§ 4280.408 (d) (Con.)
(5) Applicants for grant funds must consider and document
within their plans the important environmental factors within
the Planning area and the potential environmental impacts of
the plan on the Planning area, as well as the alternative
Planning strategies that were reviewed.
(6) Whenever an applicant files an application that includes
a direct construction Project and a plan, they must have a
separate environmental evaluation.
(7) The Agency staff will give particular emphasis to ensure
compliance with the environmental policies. The Agency staff
will advise prospective recipients of grants to consider the
potential environmental impacts of their applications at the
earliest planning stages and develop plans, grants, and
projects that minimize the potential to adversely impact the
environment.
(8) The Environmental Justice and Civil Rights Impact
findings must be certified by agency staff on Form RD 2006-38,
"Environmental Justice and Civil Rights Impact Analysis and
Certification" and included in the applicant's case file along
with all applicable attachments to support the assessment.
Please refer to Environmental Justice and Civil Rights Impact
Analysis administrative notices published periodically for
clarification and procedures to use in complying with these
requirements.
(e) Discrimination complaints.
(1) Who may file. Persons or a specific class of persons
believing they have been subjected to discrimination
prohibited by this section may file a complaint personally, or
by an authorized representative with USDA, Director, Office of
Adjudication, 1400 Independence Avenue SW. , Washington, DC
20250.
(2) Time for filing. A complaint must be filed no later than
180 days from the date of the alleged discrimination, unless
the time for filing is extended by the designated officials of
USDA or the Agency.
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RD Instruction 4280-E
§ 4280.408 (Con. )
(f) Uniform Relocation and Real Property Acquisition Policies
Act. All Projects must comply with the requirements set forth in
7 CFR part 21.
(g) Floodplains and wetlands. All Projects must comply with
Executive Order 11988 "Floodplain Management" and Executive Order
11990 "Protection of Wetlands." The applicable regulations are
codified at 44 CFR parts 59 through 80.
(h) National Historic Preservation Act of 1966. All Projects
will be in compliance with the National Historic Preservation Act
of 1966 in accordance with subpart F of part 1901 of this chapter.
§ 4280.409 - [Reserved]
§ 4280.410 Other Laws and Regulations that contain Compliance
Requirements for this Program.
(a) Equal employment opportunity. For all construction contracts
and grants in excess of $10,000, the contractor must comply with
Executive Order 11246, as amended by Executive Order 11375, and as
supplemented by applicable Department of Labor regulations (41 CFR
part 60-1) . The applicant is responsible for ensuring that the
contractor complies with these requirements.
(b) Architectural barriers. All facilities financed with Zero-
Interest Loans that are open to the public or in which persons may
be employed or reside must be designed, constructed, or altered to
be readily accessible to and usable by disabled persons. Standards
for these facilities must comply with the Architectural Barriers
Act of 1968, as amended, (42 U.S.C. 4151-4157) .
(c) Uniform relocation assistance. Relocations in connection
with these programs are subject to 49 CFR part 24 as referenced by
7 CFR part 21 except that the provisions in title III of the
Uniform Act do not apply to these programs.
(d) Drug-free workplace. Grants made under these programs are
subject to the requirements contained in 2 CFR Chapter IV which
implements the Drug-Free Workplace Act. RBDG recipients will be
required to certify that it will establish and make a good faith
effort to maintain a drug-free workplace program.
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§ 4280.410 (Con.)
(e) Debarment and suspension. The requirements of 2 CFR Chapter
IV are applicable to this program.
(f) Intergovernmental review of Federal programs. These programs
are subject to the requirements of Executive Order 12372 and 2 CFR
Chapter IV. Proposed Projects are subject to the State and local
government review process contained in 2 CFR Chapter IV.
(g) Restrictions on lobbying. The restrictions and requirements
imposed by 31 U.S.C. 1352, and 2 CFR Chapter IV, are applicable to
these programs.
(h) Earthquake hazards. These programs are subject to the seismic
requirements of the Earthquake Hazards Reduction Act of 1977 (42
U.S.C. 7701-7706) .
(i) Affirmative fair housing. If applicable, the grantee will be
required to comply with the Affirmative Fair Housing Act (42
U.S.C. 3601-3631 and 24 CFR part 100) .
(j) Flood hazard insurance. The RBDG program is subject to the
National Flood Insurance Act of 1968 and the Flood Disaster
Protection Act of 1973, as amended by 42 U.S.C. 4001-4129 and 7
CFR part 1806, subpart B.
(k) Uniform administrative requirements, cost principles, and
audit requirements for Federal awards. The requirements of 2 CFR
Chapter IV, or its successor regulations are applicable to this
program.
(1) Planning and performing construction and other development.
The requirements of 7 CFR part 1924, subpart A, or its successor
regulations, are applicable to this program.
(m) Transparency Act. The requirements of 2 CFR part 170 are
applicable to this program.
(n) Conflicts of interest. The applicable requirements of 2 CFR
400, or its successor regulations are applicable to this program.
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§ 4280.410(n) (Con.)
(1) In regards to conflict of interest or the appearance of a
conflict of interest and in accordance with 2 CFR 400,
safeguards will be established to prohibit employees (includes
but not limited to local, State, Federal Government or
nonprofit corporations) from using their positions for a
purpose that is or gives the appearance of being motivated by
a desire for private gain for themselves or others,
particularly those with whom they have family, business, or
other ties.
(2) The members of the intermediary/grantee governing body,
members of the board of directors, or governing board of the
RLF, members of its lending board or loan committee and
employees of a department or authority that operates or
provides administrative services of the RLF, including
immediate family, may not hold any legal or financial interest
or influence in the third party recipient.
(3) To meet the requirements of the regulations, a public
body or Indian tribe that applies for an RLF program loan,
must in its application, describe its organizational structure
and its structure for the administration of the RLF. The
intermediary/grantee should have a distinct lending committee
and list of dedicated employees by position. In this
instance, those members of the board, lending committee, and
separate employment duties, are prevented by conflict of
interest to be allowed to be the third party recipient.
(4) As an example, the tribe or public body may have an
economic development authority or business development
department organized under the tribe or public body to
administer the RLF. The detailed description of the structure
of the authority or department would be included in the
approved Lender's Manual, and will include policies and
procedures and separation of duties to ensure no conflicts of
interest. An employee of a department, separate from the
administration of the RLF and their immediate family, may be
eligible third party recipients. An employee of the financial
department responsible for collection of RLF loan payments and
their immediate family are ineligible third party recipients.
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§ 4280.410(n) (Con.)
(5) An intermediary/grantee organized as an Indian tribe may
make RLF loans to entities owned by its tribe only if the
entity is organized and governed independently from the tribe.
An example of a tribal entity that is an eligible third party
recipient is a business organized as a corporation,
incorporated and wholly-owned by the tribe and the
corporation's board of directors is initially appointed by the
tribe, but governed by the corporation independently of the
tribe and future board members will be selected by the
corporations independent board. Tribal entities governed
under the Tribal Government are not eligible third party
recipients of an RLF administered by its tribe. (Such
entities may be eligible third party recipients of the RLF
administered by other intermediaries/grantees.)
(6) Any changes to the lending department must be reflected
in the Lender's Manual and approved by the Agency prior to any
change.
§ 4280.411 Forms, guides, and attachments.
All forms, guides, and attachments referenced in this subpart are
available online at: http://forms.sc.egov.usda.gov/eForms/ or in any
Rural Development State office.
§§ 4280.412 - 4280.414 [Reserved]
RURAL BUSINESS DEVELOPMENT GRANTS
§ 4280.415 Rural Business Development Grants.
Sections 4280.416 through 4280.439 identify the provisions that
the Agency will use for making awards for Rural Business Development
Grants.
ELIGIBILITY
§ 4280.416 Applicant eligibility.
To receive an RBDG under this subpart, an applicant must meet the
requirements specified in paragraphs (a) through (e) of this section.
If an award is made to an applicant, that applicant (grantee) must
continue to meet the requirements specified in this section. If the
grantee does not, then grant funds may be recovered from the grantee by
the Agency in accordance with Departmental Regulations.
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§ 4280.416 (Con.)
(a) Type of applicant. The Applicant must be one of the
following:
(1) A public Body/Government Entity;
(2) An Indian Tribe; or
(3) A Nonprofit entity.
(4) These entities must serve rural areas.
(5) This is to clarify eligibility with respect to Credit
Unions. There has been a presumption that credit unions were
defined as cooperatives as organized under the Federal Credit
Union Act. It has been brought to the attention of the Agency
that credit unions may be properly organized as either a
private nonprofit corporation or a cooperative. Thus, credit
unions could be eligible for the RBDG program, depending upon
the exact nature of their organizational structure. If a
Federal credit union is deemed an eligible grantee, and the
credit union is seeking to use the grant for a revolving loan
fund, you must further examine the characterization of the
borrowers, the ultimate recipients of the loan funds. Again,
the Federal Credit Union Act limits credit unions to making
loans to its members, other credit unions, and to other credit
union organizations. It must be clear from the grant
application that the credit union has members that would be
eligible ultimate recipients.
(6) Cooperatives are not eligible unless organized as a
private nonprofit corporation. Unless advised otherwise by
your Regional Attorney, Office of the General Counsel (OGC) ,
you should request their opinion that: (1) the credit union is
eligible and has authority to administer the proposed grant as
intended; (2) proposed RBDG purpose is eligible; and (3) the
credit union has the authority (in its organizational
documents) to make loans for eligible RBDG purposes.
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§ 4280.416 (Con.)
(b) Financial strength and expertise. The Applicant must have
sufficient financial strength and expertise in activities proposed
in the application to ensure accomplishment of the described
activities and objectives.
(1) Financial strength will be analyzed by the Agency based
on financial data provided in the application. The analysis
will consider the applicant's tangible net worth, which must
be positive, and whether the applicant has dependable sources
of revenue or a successful history of raising revenue
sufficient to meet cash requirements.
(2) Expertise will be analyzed by the Agency based on the
applicant staff' s training and experience in activities
similar to those proposed in the application and, if
consultants will be used, on the staff's experience in
choosing and supervising consultants. Examples of
documentation would be employee or consultant resumes,
certified statements from other projects they have completed
and previous work experience which would be similar to the
proposed project. If the applicant chooses to contract out
the technical assistance, the grantee will still be
responsible to ensure that the scope of work will be completed
in accordance with the application.
(c) Universal identifier and system for awards management.
Unless exempt under 2 CFR 25.110, the Applicant must:
(1) Be registered in the System for Awards Management (SAM)
prior to submitting an application;
(2) Maintain an active SAM registration with current
information at all times during which it has an active Federal
award or an application under consideration by the Agency; and
(3) Provide its Dun and Bradstreet Data Universal Numbering
System (DUNS) number in each application it submits to the
Agency. Generally, the DUNS number is included on Standard
Form (SF) 424, "Application for Federal Assistance."
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§ 4280.416 (Con.)
(d) Delinquent debt. The applicant must not have any delinquent
debt to the Federal Government. If an applicant has any
delinquent debt to the Federal Government, the applicant will be
ineligible to receive any funds obligated under this subpart until
the debt has been paid.
(e) Legal authority and responsibility. Each Applicant must have
the legal authority necessary to apply for and carry out the
purpose of the grant.
§ 4280.417 Project eligibility.
For a Project to be eligible for funding under this subpart, the
proposed Project must meet each of the requirements specified in
paragraphs (a) through (e) of this section.
(a) Types of projects. Grant funds may be used for Projects
identified in either paragraph (a) (1) business opportunity type
grants or (a) (2) business enterprise type grants of this section.
Unless otherwise announced in a Notice of Solicitation of
Applications, the Agency will set aside 10 percent of its RBDG
appropriation for business opportunity type grants. The Agency
reserves the right to reallocate funds set aside for business
opportunity type grants to business enterprise type grants if it
becomes apparent to the Agency that there is insufficient demand
for the funds set aside for the business opportunity type grants.
Grant applicants need to identify whether they are applying as a
business opportunity or a business enterprise type grant.
(1) Business opportunity Projects. Grant funds may be used
for business opportunity Projects that include one or more of
the following activities:
(i) Identify and analyze business opportunities that
will use local rural materials or human resources. This
includes opportunities in export markets, as well as
feasibility and business plan studies. This includes but
it not limited to asset mapping for economic development;
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§ 4280.417 (a) (1) (Con.)
(ii) Identify, train, and provide Technical Assistance
to existing or prospective rural entrepreneurs and
managers;
(iii) Establish Business Support Centers and otherwise
assist in the creation of new Rural businesses;
(iv) Conduct local community or multi-county Economic
Development Planning;
(v) Conduct leadership development training of
existing or prospective adult rural entrepreneurs and
managers;
(vi) Establish centers for training, technology, and
trade that will provide training to Rural businesses in
the utilization of interactive communications
technologies to develop international trade opportunities
and markets; or
(vii) Pay reasonable fees and charges for professional
services necessary to conduct the Technical Assistance,
training, or planning functions.
(2) Business enterprise projects. Grant funds may be used to
finance and/or develop Small and Emerging Businesses in Rural
Areas including, but not limited to, the following activities:
(i) Acquisition and development of land, easements and
rights-of-way;
(A) RD staff should ensure that this purpose is to
specifically assist small and emerging business
enterprises, not to provide land for residential
housing.
(B) Through the revolving loan program, a
construction company may receive a loan from a
grantee to expand its construction business. It is
not acceptable to use RBDG funds to finance housing
for residents; Rural Development has other programs
in place for site development and residential
housing. The RBDG should not be used to duplicate
other Rural Development program purposes.
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§ 4280.417(a) (2) (Con.)
(ii) Construction, conversion, enlargement, repairs or
modernization of buildings, plants, machinery, equipment,
access streets and roads, parking areas, utilities, and
pollution control and abatement facilities;
(iii) Provision of loans for startup operating cost and
working capital;
(A) Since the instruction specifically states
"loans, " RD staff should ensure that the grantee
must loan the funds to a small and emerging
business enterprise for startup operating costs and
working capital. "Pass-through" grants are not an
allowable purpose for the RBDG program.
(B) In addition, RBDG funds cannot be used by the
grantee for the grantee' s own startup costs or
working capital. However, the grantee can use
grant funds for salaries and expenses directly
related to providing technical assistance or
training to small and emerging business
enterprises.
(iv) Reasonable fees and charges for professional
services necessary for the planning and development of
the Project. Professional services are services similar
to architectural, engineering or legal. Application
packaging cost are not permitted;
(v) Establishment of a revolving loan fund to provide
financial assistance to third parties through a loan; and
(vi) Establishment, expansion, and operation of Rural
distance learning networks or development of Rural
learning programs that provide educational instruction or
job training instruction related to potential employment
or job advancements for adult students. This includes
but it not limited to workforce development training; or
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§ 4280.417 (a) (2) (Con.)
(vii) Provision of Technical Assistance for Small and
Emerging Businesses, including but not limited to
feasibility studies and business plans; and/or
(A) RD staff will ensure that information such as
where the project will be located and the
anticipated results of the successful grant
implementation will be documented.
(B) Applications for grants to provide financial
assistance to third party recipients (revolving
loan funds) requires agency employees to complete a
Class II environmental assessment prior to grant
approval. Also, after the grant is approved,
each third party project will have an environmental
assessment completed until all Federal funds have
been used. Revolved funds are not subject to this
requirement.
(C) Based upon the eligible purposes outlined in
this Instruction, agency staff will ensure that
RBDG funds are not used to purchase portions of
loans or interest in loans already made and closed
by a lending institution. When the grantee makes a
request to provide financial assistance to third
parties through a loan, the grantee must use RBDG
funds to establish a revolving loan program. This
does not preclude the joint financing of a third-
party loan, through the revolving loan program,
with other credit sources.
(viii) Provision of Technical Assistance and training to
rural communities for the purpose of improving passenger
transportation services or facilities.
(ix) Loan participations. The purchase of a
participation in a loan shall be considered a loan to an
Ultimate Recipient for the purposes of RBDG revolving
loan funds. It is the Agency's position that a grantee
may sell participation or purchase a participation in a
loan using the RBDG revolving loan fund.
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§ 4280.417 (Con.)
(b) Result of projects.
(1) For business opportunity type grants, the Project must
have a reasonable prospect that the Project will result in the
Economic Development of a Rural Area.
(2) For business enterprise type grants, the Project must have
a reasonable prospect that it will result in the development
or financing of Small and Emerging Businesses.
(c) Basis for success or failure. Grants may be made only when
the application demonstrates a need for the Project and includes a
basis for determining the success or failure of the Project and
individual major elements of the Project and outlines procedures
that will be taken to assess the Project's impact at its
conclusion.
(d) Local and area-wide strategic plans. Business opportunity
type grants may be made only when the proposed Project is
consistent with any local and area-wide strategic plans for
community and Economic Development, coordinated with other
Economic Development activities in the Project area, and
consistent with any Rural Development State Strategic Plan.
§§ 4280.418 - 4280.420 [RESERVED]
Funding Provisions
§ 4280.421 Term requirement.
A grant may be considered for the amount needed to assist with the
completion of a proposed Project, provided that the Project can
reasonably be expected to be completed within 1 full year after it has
begun. The project is considered to begin on the date of obligation.
In those rare instances when the project is not completed within the 12
month period, the State may extend the project for a second year upon
the request of the grantee prior to the 12 month period ending. The
State Office must be able to determine that the project will be
completed within the allotted extension.
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S 4280.422 Joint funding.
To the extent permitted by law, Agency grant funds may be used
jointly and in proportion with funds furnished by the grantee or from
other sources including Agency loan funds.
§ 4280.423 Ineligible uses of grant funds. Grant funds may not be used
towards any of the uses identified in paragraphs (a) through (n) of this
section.
(a) Duplicate current services or substitute support previously
provided. If the current service is inadequate, however, grant
funds may be used to expand the level of effort or services beyond
what is currently being provided.
(b) Pay costs of preparing the application package for funding
under this program or any other program.
(c) Pay costs for any expenses incurred prior to receipt of a
full application, except for those permitted under Departmental
Regulations.
(1) Agency employees should refer to 2 CFR 200.407 when
grantee is requesting reimbursement for cost incurred prior to
receipt of a full application. If the Agency has not given
written approval to the grantee prior to the receipt of a full
application, these cost will not be reimbursable. It is the
Agency's policy not to grant prior written approval for any
cost incurred prior to 90 days before the receipt of a full
application.
(d) Fund political activities.
(e) Pay for assistance to any private business enterprise which
does not create and/or support jobs in the United States.
(f) Pay any judgment or debt owed to the United States.
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§ 4280.423 (Con.)
(g) Fund Agriculture Production either directly or through
horizontally integrated livestock operations except for commercial
nurseries, timber operations or limited Agricultural Production
related to Technical Assistance Projects. The following are not
considered Agriculture Production:
(i) Aquaculture, including conservation, development,
and utilization of water for aquaculture;
(ii) Commercial fishing;
(iii) Commercial nurseries engaged in the production of
ornamental plants and trees and other nursery products
such as bulbs, flowers, shrubbery, flower and vegetable
seeds, sod, and the growing of plants from seed to the
transplant stage;
(iv) Forestry, which includes businesses primarily
engaged in the operation of timber tracts, tree farms,
and forest nurseries and related activities such as
reforestation; or
(v) The growing of mushrooms or hydroponics.
(h) To finance comprehensive area-wide type Planning. This does
not preclude the use of grant funds for Planning for a given
Project.
(i) To make loans when the rates, terms and charges for those
loans are not reasonable or would be for purposes not eligible
under 7 CFR part 4274 subpart D.
(j) For programs operated by cable television systems. However,
rural local non-profit entities that produce television programs
to provide information on issues of importance to farmers and
rural residents are eligible.
(k) To 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.
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§ 4280.423 (Con.)
(1) To pay for Technical Assistance that duplicates assistance
provided to implement an action plan funded by the Forest Service
(FS) under the National Forest-Dependent Rural Communities
Economic Diversification Act for 5 continuous years from the date
of grant approval by the FS. To avoid duplicate assistance, the
grantee shall coordinate with FS and the Agency to ascertain if a
grant has been made in a substantially similar geographical or
defined local area in a State for Technical Assistance under the
FS program. The grantee will provide documentation to FS and the
Agency regarding the contact with each agency.
(m) Pass through grants. Pass through grants are for, but not
limited to:
(1) The purchase, refurbishing, or remodeling of real estate
for use as a business incubator without charging a fair market
rental;
(2) The purchase of equipment for use by an ultimate recipient
without charging a fair market rental; and
(3) The making of a Revolving Loan Fund (RLF) loan without
taking appropriate security to reasonably assure repayment of
the loan.
(4) Since the RBDG program is designed to promote economic
development, for the purposes of this regulation the Agency
will consider market rent to be anything equivalent to or
above straight line depreciation as identified in the IRS
rules and regulations. The program income received from these
rents may be used to maintain and possibly replace the
original items funded by the grant. This process should not
be considered a pass through since it is more than a nominal
value, but significantly less than the grantee would pay under
commercial circumstances.
(n) For a Project that would result in the transfer of existing
employment or business activity more than 25 miles from its
existing location.
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RD Instruction 4280-E
§§ 4280.424 - 4280.426 [Reserved]
Applying for a Grant
S 4280.427 Application.
Applications for an RBDG grant as specified in § 4280.417(a) (1)
and (2) must contain the following:
(a) An original and one copy of SF 424, "Application For Federal
Assistance (For Non-construction) ;"
(b) Copies of applicant's organizational documents showing the
applicants legal existence and authority to perform the
activities under the grant;
(c) A proposed scope of work, including a description of the
proposed Project, i.e. , RLF, Technical Assistance, Industrial
Site, Business Opportunity and Other Business Development, details
of the proposed activities to be accomplished and timeframes for
completion of each task, the number of months duration of the
Project, and the estimated time it will take from grant approval
to beginning of Project implementation;
(d) A written narrative that includes, at a minimum, the
following items:
(1) An explanation of why the Project is needed, the benefits
of the proposed Project, and how the Project meets the grant
eligible purposes;
(2) Area to be served, identifying each governmental unit,
i.e. town, county, etc. , to be affected by the Project;
(3) Description of how the Project will coordinate Economic
Development activities with other Economic Development
activities within the Project area;
(4) Business to be assisted, if appropriate; and Economic
Development to be accomplished;
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§ 4280.427 (d) (Con.)
(5) An explanation of how the proposed Project will result in
newly created, increased or supported jobs in the area and the
number of projected new and supported jobs within the next 3
years;
(6) A description of the applicant's demonstrated capability
and experience in providing the proposed Project assistance or
similar Economic Development activities, including experience
of key staff members and persons who will be providing the
proposed Project activities and managing the Project;
(7) The method and rationale used to select the areas and
businesses that will receive the service;
(8) A brief description of how the work will be performed
including whether organizational staff or consultants or
contractors will be used; and
(9) Other information the Agency may request to assist it in
making a grant award determination;
(e) The latest 3 years of financial information to show the
applicant' s financial capacity to carry out the proposed work. If
the applicant is less than 3 years old, at a minimum, the
information should include all balance sheet(s) , income
statement(s) and cash flow statement(s) . A current audited report
is required if available;
(f) Intergovernmental review comments from the State Single Point
of Contact, or evidence that the State has elected not to review
the program under Executive Order 12372;
(g) Documentation regarding the availability and amount of other
funds to be used in conjunction with the funds from the RBDG;
Agency employees must make a determination that the other funds
proposed are in place as part of their financial analysis toward
the feasibility of the project. If there is not a firm commitment
in writing of the other funding, it may not be considered for
leveraging and scoring purposes and the project must be feasible
without those funds;
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§ 4280.427 (Con.)
(h) A budget which includes salaries, fringe benefits, consultant
costs, indirect costs, and other appropriate direct costs for the
Project; and
(i) RBDG construction Project grants must conform with 7 CFR part
1924, subpart A requirements.
§§ 4280.428 - 4280.429 [Reserved]
§ 4280.430 Notification of decision.
When the Agency has determined that an application is not eligible
or that no further action will be taken, the Agency will notify the
applicant in writing of the reasons why the application was not
favorably considered and provide any appeal rights.
§§ 4280.431 - 4280.433 [Reserved]
Processing and Scoring Applications
§ 4280.434 General processing and scoring provisions.
The Agency will review each application for assistance in
accordance with the priorities established in § 4280.435. The Agency
will assign each application a priority rating and will select
applications for funding based on the priority ratings and the total
funds available to the program.
(a) Applications. The Agency will score each application based
on the information contained in the application and its supporting
information. All applications submitted for funding must contain
sufficient information to permit the Agency to complete a thorough
priority rating. Agency employees may not consider any
information not provided by the applicant in writing for scoring
purposes.
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RD Instruction 4280-E
§ 4280.434 (Con.)
(b) Unfunded applications. The Agency will notify eligible
applicants if funds are not available. If an applicant wishes to
have their application maintained in an active file for future
consideration, the applicant must revise and update their
application in writing for the Agency to reconsider in a future
funding cycle. Agency employees will notify unsuccessful
applicants who did not receive funding due to insufficient funds
in writing that their application will not be funded. The
potential grantee will be permitted to respond in writing that
they wish their application to be reconsidered in future funding
cycles. The applicant at this time, may provide additional
updated information to be considered in future funding cycles.
§ 4280.435 Scoring criteria. The Agency will use the criteria in this
section to score applications for purposes identified under
§ 4280.417(a) (1)and (2) .
State Directors should refer to the project selection criteria
scoresheet which provides selection process for projects and outlines
how discretionary points can be used to provide points to ensure
geographical distribution within the State as well as providing
assistance for economically distressed areas and areas which have been
declared disaster areas. Once all points are decided, the RBDG projects
received by the State established due date must be funded in order of
highest score to lowest score. States should publish funding cycle due
dates by which RBDG applications should be received in either the State
or Area Office. These due dates should be posted on the State Rural
Development Web site as well as in widely distributed public media
throughout the State. Once the due date has passed, all completed
applications should be scored including the assigned discretionary
points for those projects eligible for discretionary points. The
projects should be ranked in order from highest to lowest. When the
next lower scoring project has requested more funding than the remaining
State allocation, the State Office should approach the potential grantee
and offer the remaining funds if the grantee can split or reduce the
Scope of Work to make a viable project, the remaining funds should be
awarded to this grantee. However, if the grantee cannot make a viable
project with the offered funds, then the State may move to the next
project in line for funding consideration and continue to fund projects
until all State allocations have been depleted. The project which was
passed over, due to insufficient funds, will become the State' s first
choice for the National Office Reserve funding cycle.
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RD Instruction 4280-E
4280.435 (Con.)
In accordance with RD Instruction 1940-L, section 1940.589(j) , the
State Director has the option to suballocate to District (Area) Offices.
Suballocations must be conducted in accordance with section 1940.552 (j)
of RD Instruction 1940-L.
(a) Leveraging. If the grant will fund a critical element of a
larger program of Economic Development, without which the overall
program either could not proceed or would be far less effective,
or if the program to be assisted by the grant will also be
partially funded from other sources, points will be awarded as
follows. If points are awarded for leveraging, funds must be
spent proportionally, and if leveraged funds are not utilized
proportionately with the grant, the Agency reserves the right to
take any legal action, including terminating the grant. If Rural
Development' s portion of Project funding is:
(1) Less than 20 percent-30 points;
(2) 20 but less than 50 percent-20 points;
(3) 50 but less than 75 percent-10 points; or
(4) 75 percent or more-0 points.
(b) Points will be awarded for each of the following criteria met
by the community or communities that will receive the benefit of
the grant. However, regardless of the mathematical total of
points indicated by paragraphs (b) (1) through (b) (4) of this
section, total points awarded under paragraph (b) must not exceed
40.
(1) Trauma. Experiencing trauma due to a major natural
disaster that occurred not more than 3 years prior to the
filing of the application for assistance-15 points;
(2) 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;
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(3) Long-term poverty. Has experienced Long-Term poverty as
demonstrated by being a former Rural empowerment zone, Rural
economic area partnership zone, Rural enterprise community,
champion community, or a persistent poverty county as
determined by USDA' s Economic Research Service-10 points;
(4) Population decline. Has experienced Long-Term population
decline-10 points as demonstrated by the latest three
decennial censuses.
(c) Population. Proposed Project(s) will be located in a
community of:
(1) Under 5, 000 population-15 points;
(2) Between 5, 000 and less than 15, 000 population-10 points;
or
(3) 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 awards
points accordingly.
(d) Unemployment. Proposed Project(s) will be located in areas
where the unemployment rate:
(1) exceeds the State rate by 25 percent or more-20 points;
(2) exceeds the State rate by less than 25 percent-10 points;
or
(3) is equal to or less than the State rate-0 points.
When the project covers multi-locations or larger geographical
areas such as one or two counties and specific data is not
available for the geographic region, a weighted average based
on the population for the project area will be used to
determine these points.
(e) Median household income. Proposed Project(s) will be located
in areas where Median Household Income (MHI) as prescribed by
section 673 (2) of the Community Services Block Grant Act for a
family of 4 for the State is:
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(1) Less than poverty line-25 points;
(2) More than poverty line but less than 65 percent of State
MHI-15 points;
(3) Between 65 and 85 percent of State MHI-10 points; or
(4) Greater than 85 percent State MHI-0 points.
When the project covers multi-locations or larger geographical
areas such as one or two counties and specific data is not
available for the geographic region, a weighted average based
on the population for the project area will be used to
determine these points.
(f) Experience. Applicant has evidence of successful experience
in the type of activity:
(1) 10 or more years-30 points;
(2) At least 5 but less than 10 years-20 points;
(3) At least 3 but less than 5 years-10 points; or
(4) 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.
(g) 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 should include the number of jobs that will
be supported and created. -5 points for each letter up to 25
points. Generic or duplicated letters are not acceptable,
letters must address the specific business producing the
letter, the connection to the project activities and further
provide information relative to jobs to meet the criteria
below.
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(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. The number of jobs must
be evidenced by a written commitment from the business to be
assisted.
(1) one job for less than $5,000-25 points;
(2) one job for $5,000 but less than $10,000-20 points;
(3) one job for $10, 000 but less than $15, 000-15 points;
(4) one job for $15,000 but less than $20,000-10 points; or
(5) one job for $20,000 but less than $25,000-5 points.
(i) Size of grant request. Grant Projects utilizing funds
available under this subpart of:
(1) less than $100, 000-25 points;
(2) $100, 000 to $200, 000-15 points; or
(3) more than $200, 000 but not more than $500, 000--10 points.
(j) Indirect cost. Applicant is not requesting grant funds to
cover their administrative or indirect costs-5 points.
(k) Discretionary points. Either the State Director or
Administrator may assign up to 50 discretionary points to an
application. Assignment of discretionary points must include a
written justification. Permissible justifications are geographic
distribution of funds, special Secretary of Agriculture
initiatives such as Priority Communities, or a state' s strategic
goals. Discretionary points may only be assigned to initial
grants. However, in the case where two Projects have the same
score, the State Director may add one point to the Project that
best fits the State' s strategic plan regardless of whether the
Project is an initial or subsequent grant. Since Congress
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mandated that the RBDG program operate essentially the same as the
former RBOG and RBEG programs, any grants received under those
programs will be considered as RBDG grants for the purpose of this
scoring criteria. In other words, if an applicant has previously
received an RBOG grant and is currently applying for a business
opportunity RBDG grant, it would be considered a subsequent grant.
Similarly, if an applicant has received a technical assistance
grant under the RBEG program and is applying for a technical
assistance grant under the RBDG program, it would be considered a
subsequent grant. In both cases, no discretionary points may be
awarded.
§§ 4280.436 - 4280.438 [Reserved]
GRANT AWARDS AND AGREEMENT
§ 4280.439 Grant awards and agreements. The Agency will award and
administer RBDG grants in accordance with applicable Departmental
regulations, this subpart, and the unauthorized grant provisions of 7
CFR part 1951, subpart 0.
(a) Letter of conditions. The Agency will provide each approved
applicant a letter of conditions, which sets out the conditions
under which the grant will be made, including, but not limited to,
an Agency grant agreement. Each Letter of Conditions will contain
the following paragraphs. "This letter establishes conditions
which must be understood and agreed to by you before further
consideration may be given to the application. " "This letter is
not to be considered as grant approval nor as a representation as
to the availability of funds. The docket may be completed on the
basis of a grant not to exceed $ . " "Please complete and
return the attached Form RD 1942-46, `Letter of Intent to Meet
Conditions, ' if you desire further consideration be given your
application. " Other items in the Letter of Conditions should
include those relative to: maximum amount of grant; requirements
regarding the availability and purpose of other funding; funds
being utilized proportionally; final plans and specifications;
construction contract documents and bidding; required project
audit; evidence of compliance with all applicable Federal, State,
and local requirements; closing instructions; compliance with any
required environmental mitigation measures; and other requirements
which the Agency deems necessary to ensure grant performance
including those of regional commissions when a grant is being made
by a Regional Commission.
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(b) Applicant' s intent to meet conditions. The applicant must
complete, sign and return a "Letter of Intent to Meet Conditions, "
to the Agency. If applicant identifies certain conditions that
the applicant cannot meet, the applicant may propose alternate
conditions to the Agency. The Agency must concur with any changes
proposed by the letter of conditions by the applicant before the
grant will be made.
(c) Grantee certification. The following statement will be
entered in the comment section of the Request for Obligation of
Funds, or be contained in the grant agreement, which must be
signed by the grantee:
The grantee certifies that it is in compliance with and will
continue to comply with all applicable laws; regulations;
Executive Orders; and other generally applicable requirements,
including those contained in 2 CFR 200 and 2 CFR 400 in effect on
the date of grant approval; and the approved "Letter of
Conditions. "
(d) Fund disbursement. The Agency will determine, based on 2 CFR
200, as applicable, whether disbursement of a grant will be by
advance or reimbursement. A Request for Advance or Reimbursement
must be completed by the grantee and submitted to the Agency no
more often than monthly to request either advance or reimbursement
of funds.
§§ 4280.440 - 4280.442 [Reserved]
POST AWARD ACTIVITIES AND REQUIREMENTS
§ 4280.443 Grant monitoring and servicing
RBDG grants will be monitored and serviced in accordance with the grant
agreement, this subpart, and 2 CFR Chapter IV.
§§ 4280.444 — 4280.447 [Reserved]
§ 4280.448 Transfers and assumptions.
The Agency will approve transfer and assumption requests
on grants awarded under this subpart on a case by case basis,
and then only to eligible entities under section 4280 . 416 .
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S 4280.449 Reporting.
(a) (2 CFR 200.328) A Financial Status Report and a project
performance activity report will be required of all grantees on a
quarterly basis until initial funds are expended and yearly
thereafter, if applicable, based on the Federal fiscal year. The
grantee will cause said project to be completed within the total
sums available to it in accordance with the scope of work and any
necessary modifications thereof prepared by grantee and approved
by the Agency. A final project performance report will be
required with the final Financial Status Report. The final report
may serve as the last quarterly report. The final report must
provide complete information regarding the jobs created and
supported as a result of the grant. Grantees must continuously
monitor performance to ensure that time schedules are being met,
projected work by time periods is being accomplished, and other
performance objectives are being achieved. Grantees must submit
an original of each report to the Agency no later than 30 days
after the end of the quarter. The project performance reports
must include, but not be limited to, the following:
(1) A comparison of actual accomplishments to the objectives
established for that period;
(2) Problems, delays, or adverse conditions, if any, which
have affected or will affect attainment of overall project
objectives, prevent meeting time schedules or objectives, or
preclude the attainment of particular project work elements
during established time periods. This disclosure shall be
accompanied by a statement of the action taken or planned to
resolve the situation; and
(3) Objectives and timetable established for the next
reporting period.
(4) Any special reporting requirements such as jobs supported
and created, businesses assisted, or economic development
which results in improvements in median household incomes, and
any other specific requirements should be placed in the
reporting section in the Letter of Conditions.
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§ 4280.449 (Con.)
(5) When Agency employees are reviewing quarterly financial
and status reports and project performance reports, Agency
employees must refer to Subpart E, cost principles of 2 CFR
part 200, section 400 - 475 to ensure that all reimbursements
are considered allowable cost.
(i) Terms such as reasonable and necessary for
performance under the grantee's scope of work
should be considered.
(ii) If the grantee has an approved indirect cost
rate, Agency employees must allow the use of this
rate, otherwise, if the grantee wishes to use an
indirect cost rate, a maximum of 10 percent will be
allowed as specified in Rural Development's
Appropriation law.
(b) Within 90 days after the conclusion of the project, the
grantee will provide a final project evaluation report. The last
quarterly- payment will be withheld until the final report is
received and approved by the Agency. Even though the grantee may
request reimbursement on a monthly basis, the last three months of
reimbursements will be withheld until a final project, project
performance and financial status report are received and approved
by the Agency.
(c) The Agency may require grantees to prepare a report suitable
for public distribution describing the accomplishments made
through the use of the grant and, in the case where the grant
funded the development or application of a "best practice," each
"best practice. "
(d) The grantee must provide for Financial Management Systems
that include:
(1) Accurate, current, and complete disclosure of the
financial result of each grant;
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(2) Records that identify adequately the source and
application of funds for grant-supporting activities, together
with documentation to support the records. Those records must
contain information pertaining to grant awards and
authorizations, obligations, unobligated balances, assets,
liabilities, outlays, and income;
(3) Effective control over and accountability for all funds.
Grantee must adequately safeguard all such assets and must
ensure that funds are used solely for authorized purposes.
(e) The grantee must retain financial records, supporting
documents, statistical records, and all other records pertinent to
the grant for a period of at least 3 years after grant closing
except when audit findings and litigation issues have not been
resolved, then the records must be retained beyond the 3-year
period or until such findings and/or issues have been resolved.
The grantee must provide the Agency and the Comptroller General of
the United States, or any of their duly authorized
representatives, access to any books, documents, papers, and
records of the grantee that are pertinent to the specific grant
program for the purpose of making audit, examination, excerpts,
and transcripts.
(f) 2 CFR 200.329. For real property with a useful life of 15
years or more, the Agency's policy will be to require a
performance report every 3 years.
(g) Insurance Requirements. Grantees and loan recipients are
required to obtain and maintain:
(1) Flood or mudslide insurance, if applicable.
(2) Other insurance. The Agency may require other insurances
such as, but not limited to, real estate and equipment hazard,
key person, business interruption, and fidelity bonds.
(h) Records retention. (2 CFR 200.333) Records must be
maintained for a period of 3 years after the final expenditure
report. In the case of litigation or audit findings, records must
be retained until all litigation and findings have been resolved
and final action taken.
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§ 4280.450 Audit requirements.
(a) Grantees must provide an annual audit in accordance with 2
CFR 200 (Agency employees should refer to Subpart F - Audit
Requirements, section 2 CFR 200.500 - 521) . The audit
requirements apply to the years in which grant funds are received
and years in which work is accomplished that will be paid for with
grant funds.
(b) If grant expenditures do not meet the 2 CFR 200 thresholds,
which is currently $750, 000, then a compilation and management
report will be required.
(c) Post close-out adjustments (2 CFR 200.344-345) .
§ 4280.451 Grant servicing.
The Agency will service grants in accordance with 7 CFR part 1951,
subparts E and 0, 2 CFR 200 and 2 CFR 400 and other applicable
regulations. Grantees must allow the Agency representative to perform
periodic inspection of the program operations. All non-confidential
information resulting from the Grantee's activities must be made
available to the general public on an equal basis. 2 CFR 200 is the
new OMB regulation which covers both processing and servicing of grants
for the entire Federal Government and therefore, the Departmental
Regulations 7 CFR 3015, 3016, 3019 and 3052 have been rescinded as of
December 26, 2014. 2 CFR 400 is now the Departmental Regulation
concerning conflict of interest. When considering servicing of grants,
we must refer to all the regulations stated above.
(a) Management Assistance. Grantees will be supervised as
necessary to ensure that projects are completed in accordance with
approved plans and specifications and that funds are expended for
approved purposes. Grants made under this subpart will be
administered under 2 CFR part 200 and 2 CFR part 400.1 through
400.18 and all other applicable regulations.
(b) Disbursement of funds. Funds not disbursed to the grantee
within 42 months from the date of obligation, will be
automatically deobligated. The 2014 Farm Bill mandated that Rural
Development combine the RBOG and the RBEG programs into one
regulation. In the congressional record, Congress indicated that
they expected this combined program would operate in essentially
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§ 4280.451(b) (Con.)
the same manner as the programs were operated prior to this
regulation taking affect. The current regulation permits an
extension of up to 36 months in those circumstances where the
grant for unforeseen circumstances was not completed within the 1
year time frame. Since the grantee has 90 days to submit a final
progress and financial report, we have given Agency employees 90
days to review, approve and pay the final reimbursement.
Therefore, at the end of the 42 months, any funds not reimbursed
to the grantee will be deobligated automatically without appeal.
§ 4280.452 Programmatic changes.
The Grantee must obtain prior approval for any change to the scope
or objectives of the approved project. If a grantee fails to obtain
prior approval of changes to the scope of work or budget, the Agency may
suspend, terminate, and recover the grant funds.
REVOLVING LOAN FUND GRANTS
§ 4280.453 Revolving Loan Fund Grants.
Grants made for the purpose of establishing or recapitalizing a
revolving loan, will be processed and serviced in accordance with this
Subpart, 7 CFR part 4274, subpart D, 7 CFR part 1951, subpart R, 2 CFR
part 200 and 2 CFR part 400.
§ 4280. 454 Sections of 2 CFR part 200 that Agency Employees
Should Reference
Subpart B General requirements.
Subpart C Pre-award requirements.
(a) Section 200.201 Fixed amount awards
Subpart D Post federal award requirements.
(a) Section 200.306 Value of matches
(b) Section 200.307 Program income
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§ 4280.454(b) (Con.)
(1) For RBDG, program income is any income generated by the
grant project, usually income from equipment rental or income
from the lease of real estate.
(2) Program income must be maintained in an account and
readily identifiable as such. These funds may be used to pay
for maintenance and repair cost, replacement costs, and
administrative expenses generated to create the program income
such as accounting for the monies, prorata share of bank fees,
etc.
(3) Deduct from total allowable cost
(4) Income received after grant closeout goes to the grantee
unless otherwise stated in the LOC.
(c) Section 200.308 Change in budgets
(1) Reasons that mandate prior approval
(2) Costs incurred before award or prior to receipt of full
application
(3) 12-month extension
(4) No transfer to different categories when cumulative
amount when greater than 10 percent of total budget without
agency approval.
(d) Property standards
(1) Section 200.310 Insurance - LOC
(2) Section 200.311 Real property
(i) Title in grantee's name
(ii) Use in the project, grantee cannot encumber the
title
(iii) LOC should contain notice of Federal interest
requirement
(iv) Property disposition
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§ 4280.454 (d) (2) (iv) (Con.)
(A) Requires Agency approval
(B) Grantee retains title and must pay the Agency
its percentage of the fair market value or provide
equivalent replacement property
(C) Sale for fair market value and compensate the
Agency for its prorate share
(D) Transfer property to a third party with Agency
approval
(3) Section 200.313 Equipment
(i) If fair market value is less than $5, 000, grantee
may keep.
(ii) If the fair market value is greater than $5, 000,
grantee may keep if the Agency is reimbursed its prorata
share of its fair market value.
(iii) Grantee may sell equipment and deduct $500 or 10
percent, whichever is less for sales expenses and then
reimburse the Agency its prorata share.
(4) Section 200.314 Supplies
(i) If the aggravate value of the supplies is less than
$5, 000, the grantee may keep.
(ii) If the aggravate value of the supplies if more than
$5,000, and there is no other Federal use, then the
Agency must be reimbursed its prorata share.
§ 4280.555 Remedies for Noncompliance (2 CFR 200.338) .
(a) If the grantee fails to perform or report, the Agency will
take one of the following actions:
(1) Withhold cash payment;
(2) Deny the use of any funds and/or match for the applicable
parts not in compliance;
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§ 4280.555(a) (Con.)
(3) Suspend in whole or in part or terminate the grant;
(4) Initiate suspension or debarment proceedings;
(5) Withhold further Federal awards;
(6) Take other legally available remedies.
(b) The grant can be terminated:
(1) By Rural Development for noncompliance;
(2) By mutual consent of the Agency and the grantee; and
(3) By the grantee in writing to the Agency.
§g. 4280.456 - 4280 .499 [Reserved]
§ 4280.500 OMB control number.
The reporting and recordkeeping requirements contained in this
regulation have been approved by the Office of Management and Budget
(OMB) under the provisions of 44 U.S.C. chapter 35 and have been
assigned OMB control numbers 0570-0022 and 0570-0024 in accordance with
the Paperwork Reduction Act of 1995. You are not required to respond to
this collection of information unless it displays a valid OMB control
number.
oOo
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