USDA Rural Development Update

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USDA Rural Development-Oregon Business Programs – FY2011 Report
FY2012 Outlook
Big Changes in RD-Oregon’s Business Program Team

FY2011 USDA Rural Development BUSINESS PROGRAMS REPORT:

Thank you, Oregon economic developers, for your commitment to rural business and energy development in a tough economic time. In FY2011 (ended 9/30/2011), USDA Rural Development’s Business Programs played a significant role in providing rural businesses with access to badly needed capital, support for energy projects, and assistance for economic development activities. In all, 112 projects were funded delivering $59,720,237 in assistance.

A full detail of RD-Oregon Business Programs investments in FY2011 is available at: http://www.rurdev.usda.gov/SupportDocuments/OR_BP_2011orbsAnnualReport.pdf

At the end of this email are some Business Programs success stories recently highlighted in RD-Oregon’s e-newsletter Oregon Rural Developments.

FY2012 USDA Rural Development BUSINESS PROGRAMS OUTLOOK:

The outlook for USDA Rural Development’s Business Programs in FY2012 is strong! Enactment of a FY2012 Federal Budget is nearing completion, and the expected funding levels for the new year are now coming into focus. Although overall funding will be somewhat reduced from FY2011, in a time of Federal budget cuts this is not unexpected. Overall, the funding levels bespeak a strong future for Business Programs.

The Business & Industry (B&I) loan guarantee program is expected to be funded at $832 million – down slightly from last year, but with sufficient funding to keep a strong Oregon program in operation.

The Intermediary Relending Program (IRP) revolving loan fund program is expected to be funded at $17.7 million – only slightly less than last year. State allocations are again expected to assure a national distribution of these important funds.

The Rural Business Enterprise Grant (RBEG) program may decrease to $24.3 million – a large decrease from last year’s $39 million level. Thus, we expect to have a smaller state allocation, and we are considering some changes to make sure RBEG gives the best “bang for the buck.” Watch for our “request for concept papers” in the coming month or so.

The Rural Business Opportunity Grant (RBOG) program will again be a small program – with $2.25 million available via a national competition. Watch for a national notice that will be published to invite RBOG applications.

One of the best opportunities for assistance in FY2012 will be through our Rural Economic Development Loan & Grant (REDLG) program. About $43 million will be made available over-the-counter on a monthly basis to electric coops and rural public utility districts that are willing to serve as intermediaries for rural projects. Find out more about REDLG here: http://www.rurdev.usda.gov/BCP_redlg.html

Funding levels for the Rural Energy for America Program (REAP) are still unclear, but we again expect a strong program. Projects of $20,000 or less will again be favored.

Though we are still waiting for an announcement on the outcome of FY2011’s Value-Added Producer Grant (VAPG) program (award announcements should be made in the coming month), we are also expecting an additional $17 million of VAPG funds to be offered in 2012. Watch for a national notice that will be published to invite this next round of VAPG applications.

Finally, the status of the Rural Microentrepreneur Assistance Program (RMAP) is still unclear. Stay tuned for more details once they become available.

CHANGES IN RD-Oregon BUSINESS PROGRAMS STAFF:

RD-Oregon will experience significant staffing changes in FY2012. Three veteran RD-Oregon Business Programs staffers will be leaving USDA in the coming month. We wish them all the best!

Jeff Deiss – Oregon Business Program Director will be leaving USDA after 28 years of service with USDA and nearly 7 years with RD-Oregon to join the Small Business Administration (SBA) Office of International Trade in Portland, Oregon. Jeff will be responsible for administering SBA’s export assistance loan guarantees and other programs in Oregon, Idaho, and Montana. His last day with RD in December 16, 2011. Notwithstanding his departure, Jeff remains a strong believer in the value and future of USDA Rural Development and its Business Programs. The SBA opportunity was just too exciting to pass up, and he now looks forward to working with PNW lenders in export financing in his new SBA position. Starting December 19, you will be able to reach Jeff at the Portland US Export Assistance Center at jeff.deiss@trade.gov or 503-326-5498.

Dan Streng – Long-time B&I loan specialist in Portland Dan Streng is retiring on December 3, 2011 after 28 years of service with USDA. Dan’s expertise and experience will be greatly missed. Most of Dan’s caseload will be assumed by Curt Dixon (curt.dixon@or.usda.gov or 541-923-4358 x125) or Tom Simonson (tom.simonson@or.usda.gov or 541-750-7051).

Julie Stedman – Long-time Business Programs coordinator Julie Stedman is retiring on December 3, 2011 after 14 years of service with USDA. Julie’s expertise and experience will be greatly missed. Most of Julie’s responsibilities will be assumed by John Holman (john.holman@or.usda.gov or 503-414-3369).

Not to worry! These changes are unquestionably significant, but RD-Oregon’s Business Programs will remain in capable, experienced, and energetic hands after these departures.

Martin Zone (martin.zone@or.usda.gov or 541-414-3361) will be serving as Oregon’s Acting Business Programs Director until Jeff’s successor is chosen in early 2012.

Paul Cormier (paul.cormier@or.usda.gov or 503-414-3365) will continue as Oregon’s Revolving Loan Fund Coordinator.

Curt Dixon (curt.dixon@or.usda.gov or 541-923-4358 x125) will be coordinating Oregon’s B&I program statewide. He will be playing this role from his office in Redmond, OR.

Don Hollis (Pendleton; don.hollis@or.usda.gov or 541-278-8049 x129), Oregon’s rural energy coordinator, will continue to lead our REAP and other energy programs.

Oregon’s four top notch Area Office Business Programs experts will continue to be your front line contacts for all Business Programs delivery and servicing:

Tom Simonson (Corvallis; tom.simonson@or.usda.gov or 541-750-7051)
Deanna Quimby (Roseburg; deanna.quimby@or.usda.gov or 541-673-0136 x120)
Curt Dixon (Redmond; curt.dixon@or.usda.gov or 541-923-4358 x125)
LaDonn McElligott (La Grande; ladonn.mcelligott@or.usda.gov or 541-963-4178 x103)

So despite the changes, the Oregon all-star Business Programs team will remain at your service, and we continue to be committed to the highest level of service. Let’s keep going keeping rural business developing!

Jeff Deiss, Business & Cooperative Program Director
USDA Rural Development, Oregon State Office