Sioux
Dawes
Box Butte
Scotts Bluff
Sheridan
Banner
Kimball
Cheyenne
Morrill Garden
Deuel
Cherry
Grant Hooker Thomas
ArthurMcPherson
Logan
Keith
Perkins
Lincoln
Chase
Dundy
Hayes
HitchcockRed Willow
Frontier
Brown Rock
Keya PahaBoyd
Holt
Blaine
Knox
Antelope
Pierce
CedarDixon
Wheeler
Greeley
Nance
Boone
Madison
Stan-ton
Wayne Thurston
Dakota
RichardsonPawneeJeffersonThayerNuckolls
Clay
Fillmore
Hamil- ton
York Seward
John-son
Nemaha
Otoe
Cass
Saline
Gage
Lancas- ter
ButlerPolk Sarpy
DouglasSaunders
Wash- ington
DodgeColfaxPlatte
CumingBurt Loup Garfield
Custer
Valley
Sherman Howard
DawsonBuffalo
Hall
Gosper
FurnasHarlan
Phelps
Franklin
Kearney Adams
Merrick
Rural Development Offices
Webster
Scottsbluff Area Office818 Ferdinand Plaza, Suite BScottsbluff, NE 69361P: 308-632-2195 x4
Kearney Area Office4009 6th Avenue, Suite 1Kearney, NE 68845P: 308-237-3118 x4
Lincoln Area Office8000 South 15th Street, Suite ELincoln, NE 68512P: 402-423-9683 x4
Norfolk Area Office1909 Vicki Lane, Suite 103, Norfolk, NE 68701P: 402-371-5350 x4
North Platte Sub-Area Office1202 S. Cottonwood Street, Suite 3North Platte, NE 69101P: 308-534-2360 x4
Ainsworth Sub-Area Office731 East 4th StreetAinsworth, NE 69210P: 402-387-2242 x4
October 1, 2008
State Office, 100 Centennial Mall North Lincoln, NE. 68508 P: 402-437-5551
Building Your Community From the Ground Up
• Business –growth and establishment of local businesses and cooperatives--energy opportunities
• Community Facilities – programs to build and improve community facilities such as hospitals, health clinics and emergency response facilities
• Utilities - assisting rural communities to improve water, energy, telecommunications and broadband services
• Housing –homeownership and development of affordable rental housing
The Programs – Water and Waste
% of Loan Guaranteed% of Loan Guaranteed Up to 90% (Does not apply in direct program)
Loan AmountsLoan Amounts Based on project; no maximum; the amount is based on project feasibility, reasonable project costs & cash flow
Loan TermsLoan Terms Limited to useful life of the security, maximum 40 years
FeesFees 1% of guarantee; no renewal fee (Does not apply in direct program)
Loan UsesLoan Uses Construction and non-construction costs
Borrower TypesBorrower Types Non-profit corporations and public bodies, including municipalities, counties, special-purpose districts and Indian tribes
Community sizeCommunity size Population up to 10,000
Water and Waste Success Story – Regional Water System (Southwest Nebraska)
• 3 Communities• Quality Water• Reduced Capital Costs• Total Project Cost – $5.6MM
– RD Loan $1.6MM– RD Grant $2.3MM– ECWAG $1.2MM– CDBG $500M
The Programs – Community Facilities (CF)
% of Loan Guaranteed% of Loan Guaranteed Up to 90%
Loan AmountsLoan Amounts Based on project; no maximum; the amount is based on project feasibility, reasonable project costs & cash flow
Loan TermsLoan Terms Limited to useful life of security; maximum 40 years
FeesFees 1% of guarantee; no renewal fee
Loan UsesLoan Uses Land acquisition, construction, expansion or improvement, equipment, fixtures, legal and other professional fees
Borrower TypesBorrower Types Public bodies, not-for-profit organizations and Indian tribes
Community sizeCommunity size Population up to 20,000
Community Facility Success Story – The Siouxland Y – Norm Waitt Sr. YMCA
•Fitness Recreational Facility•Community Support•Expanded Services
•Estimated Cost – $10.9 MM
-Guarantee $3.8MM-Pledges & $7.1MMDonations
The Programs – Business & Industry (B&I)
% of Loan Guaranteed% of Loan Guaranteed Up to 80%
Loan AmountsLoan Amounts Up to $25 million
Loan TermsLoan Terms Real Estate – 30; Machinery & Equipment – 15; Term Working Capital – 7
FeesFees One-time guarantee fee of 2% (1% in special cases)Annual renewal fee of 0.25% on outstanding balance
Loan UsesLoan Uses New construction, equipment, expansion, working capital and debt restructuring
Borrower TypesBorrower Types New or existing businesses. Business does not have to be headquartered in the rural community, just conducting business there.
Community sizeCommunity size Population up to 50,000
Business & Industry Success Story – Hy-Way Trailer, Henderson
• Transfer of ownership• Existing owner retained
as employee to ensure success
• Guarantee allowed bank to finance the deal
• Extended terms provided benefit to borrowers
• Retention of 3 employees
The Programs – Energy
% of Loan Guaranteed% of Loan Guaranteed Up to 85%Guaranteed portion up to 75% of total eligible project costs
Loan AmountsLoan Amounts Minimum: $5,000. Maximum: $25 million
Loan TermsLoan Terms Real Estate – 30; Machinery & Equipment – 20;Term Working Capital – 7
FeesFees One-time guarantee fee of 1%. Annual renewal fee of 0.25% on outstanding balance
Loan UsesLoan Uses Purchase and installation of renewable energy systems or improvements in energy efficiency
Borrower TypesBorrower Types Farmers, ranchers, livestock operations, rural electric cooperatives and rural small businesses
Community sizeCommunity size Population up to 50,000
Energy Success Story – Mr. J’s Affiliated Foods, Burwell
• Energy Efficiency Improvements
• Replacement of Freezers & Compressors
• 62% Energy Savings• 8 Year Payback• Project Costs – $16,800
– Grant $3,200– Bank Loan $13,600
The Programs – Single Family Home Ownership
% of Loan % of Loan GuaranteedGuaranteed
90% Guarantee
Loan AmountsLoan Amounts There is no maximum mortgage or loan limits100% financing, No PMI
Loan TermsLoan Terms 30 years, fixed rate
FeesFees One-time 2% guarantee fee
Loan UsesLoan Uses Construct new (stick built, modular or manufactured) or the purchase an existing single family home, including modular homes. Funds for repairs can be included with the purchase of an existing home.
Borrower TypesBorrower Types Individuals and households
Community sizeCommunity size Population up to 20,000
Home Ownership Success Story –David & Karrie Huryta, Ravenna
• Making Homeownership
a REALITY• Teamwork Approach
– City– Contractor – Lender– USDA Rural Development
• Financing with USDA guarantee
• Guarantee – $82,235
The Programs – Rural Rental Housing
% of Loan Guaranteed% of Loan Guaranteed Up to 90%.
Loan AmountsLoan Amounts No maximum amount if interest credit is not included$1.5 Million if interest credit is included
Loan TermsLoan Terms Up to 40 years, but not to exceed the remaining economic life of the security
FeesFees $2,500 application fee and a 1% guarantee feeRenewal fee of .5%
Loan UsesLoan Uses New construction or purchase of existing building with rehab needs
Borrower TypesBorrower Types Individuals, partnerships, non-profit and for-profit corporations, and limited liability companies
Community sizeCommunity size Population up to 20,000
Rural Rental Housing Success Story – Kelley Creek Apartments, McCook
• 24 units• Assist low and moderate
income families• Total project costs, $1.8MM
– Guarantee of tax exempt bonds $928M
– DED - Trust $459M– Tax Credits $260M– Owner $140M
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