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Catalog of Federal Domestic Assistance

Program Descriptions

10.771:  Rural Cooperative Development Grants

Popular Name:  RTDG

Objectives:  To establish and operate centers for rural cooperative development to improve economic conditions in rural areas by promoting the development of new cooperatives and/or improvement of existing cooperatives.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

10.771 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Applicants eligible are nonprofit corporations and institutions of higher education. Rural area for this program is defined as all territories of a State, that is not within the outer boundary of any city having a population of 50,000 or more according to the latest decennial census of the United States.

Beneficiary Eligibility:  Rural residents.

Credentials/Documentation:  Evidence of legal capacity, economic feasibility, and financial responsibility relative to the activity for which assistance is requested.

10.771 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  The standard application forms as furnished by the Federal Agency and required by OMB Circular Nos. A-110 and A-102 must be used for this program. An environmental assessment is generally not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure:  Preapplication Form SF-424 is filed at the Rural Development (RD) State office.

Award Procedure:  The preapplication should be submitted to the RD State Office. The funding request is submitted to the National Office for scoring and funding authority. Final processing of the awards will be given to the designated State.

Deadlines:  Published in the Federal Register.

Range of Approval/Disapproval Time:  Several months.

Appeals:  If an application is rejected, the reasons for rejection are fully stated. Applicants may request a review of this decision from the next higher management level of RBS. Such requests will be routed through the RD State Director.

Renewals:  Not applicable.

Criteria for Selecting Proposals:  Preference will be given to those applicants that demonstrate; a proven track record in cooperative development; in providing technical assistance in rural areas; ability to facilitate the establishment of cooperatives and new cooperative approaches; and Transferability of approach to rural areas outside of project area. Projects will be selected that contribute the most to the improvement of economic conditions of the rural area.

Examples of Funded Projects:  Grant funds were used to provide technical assistance, applied research, technical training, and cooperative education activities for rural cooperatives.

Range and Average of Financial Assistance:  From $65,000 to $200,000.

10.771 RELATED PROGRAMS:

None.

10.771 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, 10 grants were made.

10.771 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  RURAL BUSINESS-COOPERATIVE SERVICE, (DEPARTMENT OF AGRICULTURE )

Type of Assistance:  Project Grants.

Obligations:  FY 99 $1,750,000; FY 00 est $4,000,000; and FY 01 est $6,000,000.

Budget Account Number:  12-1900-0-1-352.

Authorization:  Food, Agriculture, Conservation, and Trade Act of 1990, Section 2347, Public Law 101-624; Consolidated Farm and Rural Development Act, Section 310B(f) through (h), 7 U.S.C. 1932; Federal Agriculture Improvement and Reform Act of 1996, Public Law 104-127.

Regulations, Guidelines, and Literature:  7 CFR 4284, Subpart F; 7 CFR 3015; 7 CFR 3019. NOTE: New regulations for the program was published in the Federal Register on August 7, 1997.

10.771 INFO CONTACTS:

Regional or Local Office:  Contact the appropriate RD State Office listed in Appendix IV of the Catalog.

Headquarters Office:  Assistant Deputy Administrator, Cooperative Services, Rural Business-Cooperative Service, Department of Agriculture, Washington, DC 20250. Phone: (202) 720-8460. Use the same number for FTS. (Home Page)

(See Appendix IV for more contact info.)

10.771 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  The total allocation is controlled by the National Office. Grant funds may be used to pay 75 percent of a project cost and administrative cost associated with the project. Applicants will be required to contribute at least 25 percent in cash or in kind contributions.

Length and Time Phasing of Assistance:  Not applicable.

Uses and Use Restrictions:  Grant funds may be used, among other things, for basic feasibility studies and providing technical assistance or advisory services; to individuals, small businesses, cooperatives, or rural industries in efforts to develop new cooperatives or improve existing cooperatives.

10.771 POST ASSISTANCE REQUIREMENTS:

Reports:  Periodic reports are made to RD.

Audits:  Periodic audits should be made as part of the recipients's systems of financial management and internal control to meet terms and conditions of grants and other agreements. Nonprofit organizations shall have audits made in accordance with USDA regulations for audit found at OMB Circular No. A-133, "Audits of Institutions of Higher Learning and other Nonprofit Institutions."

Records:  The grantee shall maintain adequate records and accounts to assure that grant funds are used for authorized purposes.