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Welcome to the Montana Rural Explorer, USDA Rural Development Montana's monthly newsletter where you will find updates on funding opportunities and activities related to our Business, Cooperative, Energy, Electric, Telecommunications, Water and Environmental, Community Facilities, Multi-Family Housing, and Single Family Housing programs.
Celebrating Our Nation's Heroes
and
Native American Heritage Month!
 November is Native American Heritage Month as well as National Veteran and Military Families Month! So, in this edition of the Montana Rural Explorer, we are highlighting the stories and successes of Montana's Veterans and Tribes, and looking at ways USDA Rural Development can assist with growth and prosperity.
Did you know that Montana has one of the highest per-capita Veteran populations in the United States? In fact, about 12 percent of Montana's population are Veterans, and nearly one-third of USDA Rural Development Montana's staff served in the Armed Forces! Read on to see how one Army Veteran built roots in Great Falls, while building her "forever home" through our mutual self-help program, in partnership with NeighborWorks Great Falls.
Montana is also home to several Federally-recognized Tribes, including the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation; the Blackfeet Tribe of the Blackfeet Indian Reservation of Montana; the Chippewa-Cree Indians of the Rocky Boy's Reservation; the Confederated Salish and Kootenai Tribes of the Flathead Reservation; the Crow Tribe of Montana; the Fort Belknap Indian Community of the Fort Belknap Reservation of Montana; the Little Shell; and the Northern Cheyenne Tribe of the Northern Cheyenne Indian Reservation.
Below, you will also find a story about an Army Veteran, turned business owner, who is part of the Little Shell Tribe and used USDA Rural Development funding to expand his distribution options for the craft brew he brought back to Butte six years ago.
Before diving in, take note of these important deadlines and happenings that are on the horizon:
- USDA is inviting applications for grants to improve access to healthy foods while creating jobs for people living in underserved rural areas. An informational webinar will be offered on Wednesday, November 17 at 11 a.m. (Mountain Time) and letters of interest are due December 7, 2021. More info may be found by CLICKING HERE.
- Applications for up to $1.15 billion in loans and grants to expand the availability of broadband in rural areas, through the ReConnect program, can be submitted starting on November 24, 2021. $350 million in grant funding - with no matching funds requirement - is being made available for Tribal governments and socially vulnerable communities. More info may be found by CLICKING HERE.
As always, we invite you to stay connected, through our Twitter feed, to ensure you have the most up-to-date info about USDA RD Montana happenings! And, you don't want to miss our continuing Main Street Monday campaign on Twitter, where we are posting videos from around Montana, and showcasing the Main Streets of our amazing rural communities, every Monday morning!
SUCCESS STORY:
(Click on the photo to watch the video)
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In 2017, Heather, a U.S. Army National Guard Veteran, decided to build her home through the Great Falls NeighborWorks self-help housing program, in Great Falls, Mont. She used a USDA Rural Development Single Family Direct Home Loan to purchase the home she built.
SFH DIRECT LOAN BACKGROUND
Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
Who may apply for this program? A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
What is an eligible area? Generally, rural areas with a population less than 35,000 are eligible. Visit the USDA Income and Property Eligibility website for complete details.
How may funds be used? Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
What is the interest rate and payback period?
- Effective November 1, 2021, the current interest rate for Single Family Housing Direct home loans is 2.50% for low-income and very low-income borrowers.
- Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower
- Interest rate when modified by payment assistance, can be as low as 1%
- Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term
CLICK HERE for more information on USDA Rural Development housing programs.
SUCCESS STORY:
(Click on the photo to watch the video)
 In 2015, Tony Olson, who is a member of the Great Falls Little Shell Tribe and a U.S. Army National Guard Veteran, brought craft brew back to Butte, Mont. He used USDA Rural Development Rural Energy for America Program funding to install solar panels on his brewery’s roof. And, Olson worked with Headwaters RC&D to obtain a low-interest loan through the USDA Rural Development Intermediary Relending Program to purchase canning line equipment and increase Butte Brewing Company’s distribution options.
IRP BACKGROUND
This program provides 1 percent low-interest loans to local lenders or “intermediaries” that re-lend to businesses to improve economic conditions and create jobs in rural communities.
Who may apply to be an intermediary lender?
- Nonprofits and cooperatives.
- Federally-recognized tribes.
- Public agencies.
The following are eligible to apply for a loan from the intermediary lender as an ultimate recipient:
- Ultimate recipients may be individuals, public or private organizations or other legal entities, given that:
- Majority ownership is held by U.S. citizens or permanent residents.
- The applicant owes no delinquent debt to the Federal Government.
- The applicant is unable to obtain affordable commercial financing for the project elsewhere.
- The project is located in an eligible rural area - Check Eligibility.
- The applicant has no legal or financial interest or influence in the work of the intermediary lender.
How much funding is available to intermediaries?
- Up to $2 million for the first financing.
- Up to $1 million at a time thereafter.
- Total aggregate debt from all funding may not exceed $15 million.
What is the maximum loan amount available to ultimate recipients?
- $250,000 or 75 percent of the total cost of the ultimate recipient’s project for which the loan is being made, whichever is less.
CLICK HERE for more information on USDA Rural Development's IRP program.
SUCCESS STORY:
(Click on the photo to watch the video)
 Rick Crook, owner of Glacier Collision Worx, in Kalispell, Mont., realized his dream of owning his own autobody collision shop through funding assistance provided, in part, by Montana West Economic Development’s use of USDA Rural Development’s Intermediary Relending Program (IRP).
MORE BACKGROUND ON IRP
How may funds be used?
- To acquire, construct, convert, enlarge or repair a business or business facility, particularly when jobs will be created or retained.
- To purchase or develop land (easements, rights of way, buildings, facilities, leases, materials).
- To purchase equipment, machinery or supplies, or make leasehold improvements.
- For start-up costs and working capital.
- For pollution control and abatement.
- For transportation services.
- To cover feasibility studies and some fees.
- Towards the building of hotels, motels, convention centers.
- For educational institutions.
- For aquaculture-based rural small business.
- To establish revolving lines of credit as described in 7 CFR Part 4274.314.
What is an eligible area?
- Any area, including a city or town, that has a population of fewer than 50,000 residents.
- Any urbanized areas contiguous and adjacent to a city or town of 50,000 or more residents may not be eligible.
- The intermediary borrower’s headquarters may be based within a larger city so long as the project service area is located in an eligible rural area.
- The intermediary lender may be located anywhere.
CLICK HERE for more information on USDA Rural Development's IRP program.
OTHER NEWS YOU CAN USE
(Click on the photo to watch the video)
National Rural Health Day is November 18th!
USDA Rural Development Emergency Rural Health Care Grants are designed to help broaden access to COVID-19 testing and vaccines, rural health care services, and food assistance through food banks and food distribution facilities. Track One: Recovery Grants provide immediate relief to address the economic conditions arising from the COVID-19 emergency. Application Deadline: Until all funds are exhausted.
More info may be found by CLICKING HERE.
 We are accepting applications to support economic development and create jobs for people in rural America through the Rural Business Development Grant program to support business opportunity and enterprise projects in rural communities.
Eligible entities are rural towns, communities, state agencies, authorities, nonprofits, federally recognized tribes, public institutions of higher education and non-profit cooperatives.
Business opportunity projects are used to identify and analyze business opportunities that will use local rural materials or human resources. Such projects must be consistent with any local and area-wide community and economic development strategic plans and are used to support other economic development activities in the project area. Projects include the establishment of business support centers or to finance job training and leadership development in rural areas.
Funding for business enterprise projects must be used to finance or develop small and emerging businesses in rural areas. Enterprise projects include the repair or modernization of buildings, technical assistance to a small business such as feasibility studies or business plans, or an equipment purchase for leasing to a small or emerging business.
In Fiscal Year 2022, USDA anticipates that part of the funding will be set aside for federally recognized Native American tribes, Rural Empowerment Zone/Enterprise Communities/Rural Economic Area Partnerships, projects located in Persistent Poverty areas, including those of Native Americans, and for Strategic Economic and Community Development (SECD) projects. Eligible applicants for the persistent poverty and SECD set-aside funds must demonstrate that 100 percent of the benefits of an approved grant will assist beneficiaries in the designated areas.
Applications for grant funding, including all set-aside funds, must be submitted to the Bozeman State Office 4:30 p.m. MST on Feb. 28, 2022. For additional information, visit Grants.gov or see page 53270 of the Sept. 27, 2021, Federal Register.
 Applications are being accepted under the Water and Waste Disposal Technical Assistance and Training Grants program. The program helps small communities improve water and waste treatment facilities for households and businesses.
Nonprofits that have the proven ability, background, experience and capacity to provide technical assistance or training on a national, regional or state basis are encouraged to apply. Eligible project areas include cities, towns and unincorporated rural areas with populations of up to 10,000 residents or tribal lands in rural areas. Special consideration may be given to projects that serve areas with populations of less than 5,500 residents or less than 2,500 residents.
Funds may be used to:
- Identify and evaluate solutions to water problems related to source, storage, treatment, distribution, collection, treatment and disposal.
- Provide technical assistance and training to improve management, operations and maintenance of water and waste disposal systems.
- Prepare water and waste disposal loan and grant applications.
Projects should be completed in 12 months.
Applications must be submitted through Grants.gov by 9:59 p.m. MST / 11:59 p.m. EST on Dec. 31, 2021.
 Applications are being accepted under the Solid Waste Management Grants program. USDA provides the grants to organizations that offer technical assistance or training to help rural communities manage solid waste sites and eliminate water pollution.
Eligible applicants include public bodies, nonprofit organizations, federally recognized tribes and academic institutions in rural areas and towns with 10,000 or fewer residents. Special consideration may be given to projects serving areas with fewer than 5,500 or 2,500 people, multiple states or lower-income populations.
Funds may be used to:
- Evaluate current landfill conditions to identify threats to water resources.
- Provide technical assistance or training to enhance the operation and maintenance of active landfills.
- Provide technical assistance or training to help communities reduce the amount of solid waste coming into a landfill.
- Provide technical assistance or training to prepare for the closure and future use of a landfill site.
Projects should be completed in 12 months.
Applications must be submitted through Grants.gov by 9:59 p.m. MST / 11:59 p.m. EST on Dec. 31, 2021.
We have several Resource Guides available which outline USDA RD programs that can help Montana's rural residents, businesses and communities!
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COVID19 Federal Rural Resource Guide: PDF
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Disaster Resiliency and Recovery Guide:PDF
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Guía de recursos conjuntos: PDF
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Joint Childcare Resource Guide: PDF
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Recreational Economy: PDF
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Recursos de resistencia y recuperación en caso de desastres: PDF
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Rural Workforce Guide: PDF
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Tribal Report - 2019: PDF
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