United States Department of Agriculture eGovernment Program
Rural Business-Cooperative Service (RBS)
eGovernment Tactical Plan
June 24, 2003
CONTENTS:
I. RBS Overview 3
A. Mission/Vision 3
B. Major Stakeholder Groups 3
C. Core Functions and Major Programs 6
D. Key Challenges 11
II. USDA eGovernment Mission, Vision, Strategic Goals and Objectives 13
A. USDA eGovernment Mission and Vision 13
B. eGovernment Goals & Objectives 13
III. Current Agency eGovernment Efforts 14
IV. Proposed Agency eGovernment Opportunities 28
V. Funding Summary for eGovernment 49
Appendix A: Agency eGovernment Steering Committee Members 50
1
Agency eGovernment Tactical Plan
Appendix A: RBS eGovernment Steering Committee Members
I. RBS Overview
A. Mission/Vision
The mission of the Rural Business-Cooperative Service is "to enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace."
We meet these goals by:
· Investing financial resources and providing technical assistance to businesses and cooperatives located in rural communities;
· Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity.
· Conducting research to provide a knowledge base necessary to support cooperatives dealing with changing markets and business trends.
· Empowering communities engaged in implementing bottoms-up strategic plans that solve their most difficult economic and social challenges in partnership with federal, state and local agencies, private sector and not-for-profit organizations working cooperatively.
B. Major Stakeholder Groups
1. Citizens/Customers
RBS Business Programs authorities are directed at rural residents to help rural communities create job opportunities.
Rural citizens (businesses) receive loan guarantees, loans, and grants, through program delivery partners to improve, develop, or finance, business, industry and employment, and improve the economic climate in rural communities. This is achieved by bolstering the existing private credit structure through loan guarantee of quality loans which are intended to provide lasting community benefits.
Rural businesses receive both funding and training from RBS in order to start up or expand; their main challenges include: understanding loan programs, the long distances from centers of knowledge, and often the limited access to technology. According to the Federal Deposit Insurance Corporation banks in rural areas have limited access to carry out large scale electronic transactions to fully implement desired business process reengineering from paper based transactions to electronic transactions.
The Cooperative Service (CS) program of RBS helps rural residents form new cooperative businesses and helps improve the operations of existing cooperatives. To accomplish these goals, CS provides technical assistance, conducts farmer cooperative related research, and produces information products to promote public understanding of cooperatives. CS also administers a value-added development grant program that supplies independent farmers and farmer-owned cooperatives with the opportunity to obtain funds for value-added product ventures.
Because of the nature of rural communities, rural residents and agricultural cooperatives face several challenges, including limited access to information and limited access to technology. CS’ programs assist RBS customers with these challenges by providing research, technical assistance, and grant funds.
Cooperatives receive funding, technology, training, and access to knowledge from RBS; their main challenge is access to information, which is often located too far away or otherwise limited or inaccessible.
The Office of Community Development (OCD) operates programs that build the capacity of low-income or otherwise distressed communities to enhance their quality of life through their own efforts. OCD manages the Empowerment Zones and Enterprise Communities (EZ/EC) grant and technical assistance programs for high poverty and outmigration communities in rural areas. This program helps designated communities implement comprehensive 10-year strategic plans for area-wide community and economic development. OCD also implements a program for addressing the problems of high outmigration and economically distressed regional areas, the Rural Economic Area Partnerships
(REAP) Zone program, and a parallel Champion Communities program for high poverty areas that not designated EZ/EC. These programs provide both financial incentives and technical assistance to participating regions and communities. OCD also operates a national network of National Centers of Excellence and Tribal Colleges, which provides technical assistance and program support to poor and minority communities within their service area, including EZ/EC, Champion Communities and REAP Zones, with program support and technical assistance.
Figure 1: Agency Citizen Groups and Customers
Major Citizen Group / Estimated Total Number ServedRural Businesses Owners / 7.0 million
Farmer/Producer / 2.0 Million
Cooperative Agribusinesses / 3,500 co-ops
Consumers/Public / 285 Million
2. Public and Private Partners
RBS partners with commercial and non-traditional lending institutions, private non profit corporations, public agencies, Indian Groups, Cooperatives, institutions of higher education, and Rural Utilities Service electric and telephone utilities to promote rural economic development and job creation projects.
These private program delivery partners must interact with the borrower and RBS to service the loans/grants and also meet agency reporting requirements. Additionally, these program delivery partners are required to have up to date information on RBS regulatory requirements. Their main need is for easier interaction between the agency as program levels continually increase and staffing levels remain stagnant.
The Cooperative Services (CS) program partners with a variety of private and public organizations. CS partners with universities through its Cooperative Agreements program. Through cooperative agreements, CS provides grant money to researches and receives research publications relating to cooperative issues. Through the Rural Cooperative Development Grant program, CS provides grant money to non-profit corporations and institutions of higher education. The grant money is used for establishing and operating centers for cooperative development. Through the 1890 Land-Grant Colleges and Universities Initiative, CS provides grant money to land-grant institutions for outreach efforts. CS also provides oversight for the National Sheep Industry Improvement Center. NSIIC promotes strategic development activities to maximize federal assistance to strengthen and enhance production and marketing of sheep and goats and their products in the United States. CS also provides oversight to the Appropriate Technology Transfer for Rural Areas. ATTRA provides information on sustainable agriculture practices. Through the Agricultural Marketing Resource Center, CS will develop a resource center with electronic capabilities to coordinate and provide value-added information. Through the Agricultural Innovation Centers (AIC), RBS provides technical, marketing, and development assistance to agricultural producers. And through the Value-Added University Research Grant, RBS will conduct research on the benefits of value-added agricultural product marketing to agricultural producers.
The rural EZ/EC program represents a long-term partnership between the federal government and rural communities-ten years in most cases-so that communities have enough time to implement a series of interconnected and mutually-supporting projects and build the capacity to sustain their development beyond the term of the partnership. It places great emphasis on partnerships with federal and state agencies, local and tribal governments, private businesses, foundations, and non-profits that engage the resources and commitments of these organizations to carry out portions of the community's strategic plan. It also insists on broad-based citizen participation in planning, implementation, and evaluation of the community's efforts to carry out its plan.
Figure 2: Major Public/Private Partner Organizations
Major Organization/ Industry Groups / Estimated Total Number ServedBanks / 1352
Intermediary Relenders / 603
Non Profit Corporations / 5308
Public Bodies / 3000
Rural Utilities / 300
University teaching, research and extension / 3,100
National Youth Serving Agencies / 6 Million Youth
Farmer and Producer Organizations / 150
Executive and Legislative Policy Makers / 2000
3. Employees
RBS has employees both at the USDA Headquarters complex and in Rural Development Service Centers around the country.
Figure 3: Major Employee Groups
Employee Groups / Estimated Total NumberHeadquarters Employees / 90
Service Center Employees
*Field Employees Performing RBS Functions are officially assigned to the Rural Housing Service / *300
C. Core Functions and Major Programs
RBS core business functions include loan administration, grants administration, and research, technical assistance, education and outreach.
Business and Industry (B&I) Guaranteed Loans. This program finances business and industrial acquisition, construction, conversion, enlargement, repair or modernization in eligible rural areas. Rural areas are any areas other than a city or town that has a population greater than 50,000 inhabitants; and the urbanized area continuous and adjacent to such a city or town. Loan funds are used to finance the purchase and development of land, easements, rights-of-way, buildings, equipment, facilities, machinery, supplies and materials plus funds can be sued to pay start-up costs and to supply working capital. Eligible applicants include individuals as well as public, private, or cooperative organizations organized for profit or non profit, Indian Tribes, and corporate entities. Loans may be guaranteed by RBS with a maximum percentage for guarantee of 80 percent for loans of $5million or less, 70 percent for loans between $5 million and $10 million, and 60 percent for loans exceeding $10 million up to $25 million.
Business and Industry Direct Loans. The criteria and loan purposes are basically the same as for the guaranteed loans except for certain loan purposes. These loans are available to applicants who are unable to obtain the needed assistance from a private lender with a guarantee. The maximum loan amount to any one borrower is $10 million. There is no funding available for this program in FY 2002 and beyond.
Intermediary Relending Program (IRP) Loans. These direct loans are made to intermediary borrowers (ie. Private non profit corporations, state or local government agencies, Indian tribes and cooperatives) who, in turn, relend the funds to rural businesses, private non profit organizations and others meeting the criteria for ultimate recipients. IRP loans are limited to rural unincorporated areas, and cities or towns of 25,000 or less population. Financial assistance from the intermediary to the ultimate recipient must be for economic development projects, the establishment of new businesses and/or the expansion of existing businesses, creation of employment opportunities and/or saving existing jobs in rural areas.
Rural Business Enterprise Grants. Grants are available to public bodies, private nonprofit corporations, and Federally recognized Indian Tribal groups to encourage the development of small and emerging private business enterprises; the creation, expansion, and operation of rural distance learning networks; and to provide adult education or job training related to potential employment or job advancement for adult students. These grants are limited to any areas other than a city or town that has a population greater than 50,000 inhabitants; and the urbanized area continuous and adjacent to such a city or town. Grant funds may be used for the acquisition and development of land, construction of buildings, purchase of equipment, obtaining of needed technical assistance, start up capital in the form of a loan from the establishment of the revolving loan funds, refinancing, services and fees. Grants are also available to qualified nonprofit organizations for the provision of technical assistance and training to rural communities for the purpose of improving passenger transportation services or facilities.
Rural Business Opportunity Grants. Grants are made to public bodies, nonprofit corporations, Indian tribes and cooperatives for training, planning, and technical assistance for rural economic development. Assistance is limited to any areas other than a city or town that has a population greater than 50,000 inhabitants; and the urbanized area continuous and adjacent to such a city or town. Funds may be used to pay costs of providing technical assistance for rural business, economic planning for rural communities, or training for rural entrepreneurs or economic development officials.
Rural Economic Development Loans. Zero interest loans are provided to any RUS electric or telephone entity (that is not delinquent on any Federal debt or in bankruptcy proceedings) to relend to ultimate recipient projects at zero interest. Projects must be located in unincorporated areas or small towns of 2,500 or less population. Proceeds are used to provide rural economic development and/or job creation projects including, but not limited to project feasibility studies, start up costs, incubator projects, and other reasonable expenses.
Rural Economic Development Grants. Grants are provided borrowers that re-loan the funds at zero interest rates to businesses in unincorporated areas or small towns of 2,500 or less population. The revolving loan funds provide needed capital to non-profit entities and municipal organizations to finance community facilities in rural areas which promote job creations, promote education and training to enhance marketable job skills, or extend or improve medical care. Grant funds are used to establish revolving loan fund programs to promote economic development in rural areas.
Rural Cooperative Development Grants. Grants are made to fund the establishment and operation of centers for rural cooperative development with their primary purpose being the improvement of economic conditions in rural areas.
Value-Added Agricultural Producer Grants. Grants are made to fund planning and working capital requirements for independent producers and organizations owned by a majority of independent producers who are interested in marketing value-added agricultural products. Grants may be used to fund up to 50% of the cost of the project. The applicant must contribute at least 50% from non-federal sources. Grants are competitive and are awarded based on specific selection criteria.
Agricultural Marketing Resource Center Pilot Project. The Center is to be established at an eligible institution that will develop a resource center with electronic capabilities to coordinate and provide to independent producers and processors of value-added agricultural commodities and products of agricultural commodities information regarding research, business, legal, financial, or logistical assistance. The Center will also develop a strategy to establish a nationwide market information and coordination system. Grants may be used to fund up to 50% of the cost of the Center. The applicant must contribute at least 50% from non-federal sources. The grant is competitive and is awarded based on specific selection criteria.
Agriculture Innovation Center Demonstration Program. Through grants to eligible entities, the program provides agricultural producers with technical assistance, consisting of engineering services, applied research, scale production, and similar services, to enable the agricultural producers to establish businesses to produce value-added agricultural commodities or products. The program also provides assistance in marketing, market development, and business planning as well as organizational, outreach, and development assistance to increase the viability, growth, and sustainability of businesses that produce value-added agricultural commodities or products. Grants may be used to fund up to two-thirds of the cost of the project. The applicant must contribute at least one-third from non-federal sources. The grants are competitive and are awarded based on specific selection criteria.