USDA Rural Development

Investing In Rural Nebraska Communities…One Relationship at a Time

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

Building Communities from the Ground Up

USDA Rural Development is an Equal Opportunity lender, Provider and Employer. Complaints of discrimination should be sent to USDA, Director, OCR, Washington, DC 20250-9410

Thank-you!