South Dakota RBS Summer 2018 Newsletter

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South Dakota USDA Rural Development - Summer 2018 Edition

Rural Microentrepreneur Assistance Program (RMAP)

Program Goal: To provide loans and grants to Microenterprise Development Organizations (MDOS) to:

Provide microloans to help microenterprises startup and growth through a Rural Microloan Revolving Loan Fund.

Provide training and technical assistance to microloan borrowers and microentrepreneurs.

Who is the applicant for RMAP funds?

The applicant is a MDO:

An organization that is a non-profit entity;
An Indian tribe (the government of which tribe certifies that no MDO serves the tribe and no RMAP exists under the jurisdiction of the Indian tribe);
or a public institution of higher education; and that, for the benefit of rural microentrepreneurs and microenterprises:

Provides training and technical assistance and/or
Makes microloans or facilitates access to capital or another related service; and/or
has a demonstrated record of delivering, or an effective plan to develop a program to deliver, such services.

The following are eligible to apply for a loan from the MDO as an ultimate
recipient:

Businesses located in an eligible area with 10 or fewer full-time employees

The Agency will make direct loans to microlenders for the purpose of
providing fixed interest rate microloans to rural microentrepreneurs for
startup and growing microenterprises. Eligible microlenders will also be
automatically eligible to receive microlender technical assistance grants
to provide technical assistance and training to microentrepreneurs that
have received or are seeking a microloan under this program.

To allow for extended opportunities for technical assistance and training,
the Agency will make technical assistance only grants to MDOs that
have sources of funding other than program funds for making or
facilitating microloans.

Deadline: Applications are now being accepted, with the next quarterly funding review scheduled for September 30, 2018. To determine applicant eligibility, receive an application template or learn more about this program, eligible applicants are encouraged to contact Rural Business and Cooperative Programs Director Dana Kleinsasser, at (605) 352-1157 or dana.kleinsasser@sd.usda.

Program Link

Highlighted Project - Morgan Joy's Vanity

Since 2009 grant funds awarded in South Dakota have provided technical assistance and business-based training to microentrepreneurs and ultimate recipients. Morgan Lawrence was one of the ultimate recipients that benefitted from a Rural MicroEntrepreneur Assistance Program loan that was made to Four Bands Community Fund, Inc. Morgan obtained a business loan from Four Bands to start up Morgan Joy’s Vanity, a beauty shop that offers full-service hair care, facials and manicures. Morgan says, “After opening my own business, my life changed for the good.” Not only is her business a success, she is now a respected business owner and is making a positive impact in Eagle Butte, the community where she grew up.

In This Issue

Rural Microentrepreneur Assistance Program (RMAP)
USDA Rural Development and the Small Business Administration Host Joint Lender Meetings
USDA Rural Development and the Small Business Administration Host Joint Lending Roundtable
Rural Energy for America Program (REAP)
RBS Service Area Map & Contact Information
In the Loop

Quote of the Quarter

"Develop success from failures. Discouragement and failure are two of the surest stepping stones to success."

- Dale Carnegie-

USDA Rural Development

Contact:
Dana Kleinsasser,
Rural Business & Cooperative Programs Director
605-352-1157

For More information:
Go to www.rd.usda.gov/sd or call the USDA Rural Development South Dakota State Office.

South Dakota State Office:
200 4th Street SW
Federal Building, Rm. 210
Huron, SD 57350

Local: 605-352-1142

Fax: 855-262-1940

USDA Rural Development and the Small Business Administration Host Joint Lender Meetings

U.S. Department of Agriculture (USDA) Rural Development (RD) and the Small Business Administration (SBA) are holding joint training sessions for lenders to learn about programs and products available to support business lending in South Dakota.

USDA RD staff will explain the Business & Industry (B & I) and the Rural Energy for America Program (REAP) guaranteed programs and how lenders can use them to expand their portfolio, while maintaining the personal contacts through servicing. Lenders will also learn about using Farmer Mac as a secondary market, using lender participation to extend your loan limits, and using these programs to meet your CRA goals.

U.S. Small Business Administration will present on the benefits of using the 7(a) Guaranty Loan. This program will allow for a lender to finance new ventures or assist existing businesses in their community by providing extended terms to help small business owners with their business operations and reducing the lenders’ loan risk.

Please make plans to attend one of the sessions below to get the latest information on these guaranteed loan products:

July 25, 2018:

Yankton: 9:30 am – USDA facility at 2914 Broadway, Yankton, SD.

Mitchell: 2:00 pm – USDA facility at 1820 North Kimball, Mitchell, SD.

August 15, 2018:

Sioux Falls: 9:00 am – Zeal Center of Entrepreneurship – Main Conference at 2329 N. Career Avenue, Southeast Technical Campus, Sioux Falls, SD.

August 22, 2018:

Pierre: 9:00 am – USDA facility at 1717 North Lincoln Avenue, Pierre, SD.

September 20, 2018:

Rapid City: 9:00 am – USDA facility at 414 East Stumer Road, Rapid City, SD.

If you have questions, you can contact David Puls at 605-330-4243 ext. 13 or email at david.puls@sba.gov or Dana Kleinsasser at 605-352-1157 or email at dana.kleinsasser@sd.udsa.gov.

USDA Rural Development and the Small Business Administration Host Joint Lending Roundtable

When: Wednesday, August 8, 2018

Where: USDA Rural Development service center conference room located at 1717 North Lincoln Avenue,
Pierre, SD

The panel will discuss federal agency rural initiatives and challenges of rural lending.

Please make plans to attend. Please watch our website at www.rd.usda.gov/sd where more information will be shared in the near future.

If you have questions, you can contact David Puls at 605-330-4243 ext. 13 or email at david.puls@sba.gov or Dana Kleinsasser at 605-352-1157 or email at dana.kleinsasser@sd.usda.gov.

Rural Energy for America Program (REAP)

Program Goal: To assist agricultural producers and small businesses in communities of up to 50,000 residents reduce energy costs and consumption by purchasing and installing renewable energy systems and making energy efficiency improvements in their operations.

Program Link

Highlighted Project - Energy Efficiency Improvements Enhance Shopping Experience

The R&B Food Center located in Wessington, South Dakota is the only grocery store located in the community with a population of 177. Vernetta LeGrand has owned and operated this local grocery store since 1987.

Having a grocery store is critical to community vitality. Along those same lines, maintaining the equipment is important and appealing to the customer, as well as enhances the overall shopping experience.

LeGrand wanted to increase her profitability and concluded the obvious move was to make her store more energy efficient and cost effective.

LeGrand worked closely with USDA Rural Development to help fund her energy efficiency improvements using the Rural Energy for America Program (REAP). Grant funds of $5,662 (25% percent of the total project cost) were used for the installation of a new refrigeration unit. The store is projected to save 39,795 kWh of electricity, which equates to a savings of $3,334 per year.

When LeGrand was asked about what this grocery store means to the community, she replied, “Some people in the community get it. They understand what it means to have a grocery in town and support it.”

LeGrand shared that her favorite parts about running the store were seeing her customers and being able to provide healthy incentives for shopping locally.

Questions about the REAP program may be directed to the South Dakota Energy Coordinator, Jolene Pravecek, at (605) 655-3516 or jolene.pravecek@sd.usda.gov; or to your local Rural Development Business Specialist.

A photo of the inefficient refrigeration system.

Pictured left to right are Vernetta LeGrand Owner of R&B Food Center and Cayla Hilbrands, USDA Rural Development Specialist standing in front of the newly installed energy efficient refrigeration system.

RBS Service Area Map & Contact Information

Click the map to view contact information.

In the Loop

The South Dakota Rural Development Business and Cooperative Services team is excited to share our quarterly RBS newsletter.

At Rural Development, we appreciate our partnerships and all the hard work put in to make Rural South Dakota the best it can be. We know that in working together, we can make an even bigger impact on our communities, so we are pleased to improve the communication to our partners through our newsletters. We plan to send a newsletter each quarter to our partners to keep you in the loop with our programs, tips, regulations, deadlines, etc.

If you have any questions, requests or materials you would like to share in our quarterly newsletter, please contact Dana Kleinsasser at 605-352-1157.

Questions?
Contact Us
200 4th Street SW
Federal Bldg. Rm 210
Huron, SD 57350

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