Business Programs Specialist

Lori Nekoba, Business Programs Specialist
USDA/Rural
Development
154 Waianuenue Ave., Room 311
Hilo, HI  96720
(808)
933-8312
lori.nekoba@hi.usda.gov

http://edocket.access.gpo.gov/2009/pdf/E9-10424.pdf

Approximately
$18 million in competitive grant funds for fiscal year
(FY) 2009 to help
independent agricultural producers enter into
value-added activities.  Ten
percent is available to Beginning Farmers
or Ranchers and Socially
Disadvantaged Farmers or Ranchers-applications
must be postmarked by June 22,
2009 and sent to the Hawaii State Office
(address above).  All other
applications must be postmarked on or before
July 6, 2009 and sent to the
Hawaii State Office (address above).

Grants may be made for planning
activities or for working capital
expenses, but not for both. The maximum
grant amount for a planning
grant is $100,000 and the maximum grant amount
for a working capital
grant is $300,000.  Matching Funds are required and
must be at least
equal to the grant amount (1:1).

DATES: Applications
for grants must be submitted on paper or
electronically.  Late applications
are not eligible for FY 2009 grant
funding.
* Paper copies must be
postmarked and mailed, shipped, or sent
overnight no later than March 31,
2008, to be eligible for FY 2008 grant
funding.
* Electronic copies must
be received by March 31, 2008, to be
eligible for FY 2008 grant
funding.

An application guide and other materials may be obtained
at
http://www.rurdev.usda.gov/rbs/coops/vadg.htm (note:  it may take
several days for the web-site to be updated with FY 08
information).

Paper applications must be submitted to the Rural
Development State
Office (address above for the State of Hawaii, American
Samoa, Guam,
Commonwealth of the Northern Marianas Islands Republic of
Palau,
Republic of the Marshall Islands, and the Federated States of
Micronesia
(Yap, Chuuk, Kosrae, Pohnpei) in which the Project will primarily
take
place.

Electronic applications must be submitted through the
Grants.gov Web
site at: http://www.grants.gov, following the
instructions found on this
Web site.

What is Value-Added?
The term
‘value-added agricultural product’ means any agricultural
commodity or
product that-
(i) has undergone a change in physical state (e.g., wheat into
flour);
(ii) was produced in a manner that enhances the value of
the
agricultural commodity or product, as demonstrated through a
business
plan that shows the enhanced value (e.g., organic
tomatoes);
(iii) is physically segregated in a manner that results in
the
enhancement of the value of the agricultural commodity or product
(e.g.,
identity-preserved corn);
(iv) is a source of farm- or ranch-based
renewable energy, including
E-85 fuel (e.g., electricity generated from an
anaerobic lagoon); or
(v) is aggregated and marketed as a locally-produced
agricultural food
product

Eligible Applicants
1. Independent
producers;
2. Farmer or rancher cooperatives;
3. Agricultural producer
groups;
4. Majority-controlled producer-based business
ventures.

Eligible Purposes
1. Planning activities, such as conducting
feasibility studies and
developing business plans for processing and
marketing value-added
agricultural products
2. Working capital expenses
for processing and marketing
value-added agricultural products, including
inventory, salaries, and
office supplies.

Ineligible Uses of
Funds
1. Plan, repair, rehabilitate, acquire, or construct a building
or
facility, including a processing facility;
2. Purchase, rent, or
install fixed equipment, including processing
equipment;
3. Purchase
vehicles, including boats;
4. Pay for the preparation of the grant
application;
5. Pay expenses not directly related to the funded
Venture;
6. Fund political or lobbying activities;
7. Fund any activities
prohibited by 7 CFR parts 3015 and 3019;
8. Fund architectural or engineering
design work for a specific
physical facility;
9. Fund any expenses related
to the production of any commodity or
product to which value will be added,
including seed, rootstock, labor
for harvesting the crop, and delivery of the
commodity to a processing
facility;
10. Fund research and
development;
11. Purchase land;
12. Duplicate current services or replace
or substitute support
previously provided;
13. Pay costs of the Project
incurred prior to the date of grant
approval;
14. Pay for assistance to
any private business which does not have
at least 51% ownership by citizens
of the U.S. or reside in the U.S.
after being legally admitted for permanent
residence; or
15. Pay any judgment or debt owed to the United States;
or
16. Conduct activities on behalf of anyone other than a
specific
Independent Producer or group of Independent Producers.
17. Pay
for any goods or services provided by a person or entity who
has a Conflict
of Interest. Also, note that in-kind Matching Funds may
not be provided by a
person or entity that has a Conflict of Interest.

Grant
Selection
Planning grants will be evaluated based on the following
criteria:
1. Nature of the proposed venture (0- 8 points),
2.
Qualifications of those doing work (0-8 points),
3. Commitments and support
(0-5 points),
4. Project leadership (0-8 points),
5. Work plan/budget (0-8
points),
6. Amount requested (0 or 2 points),
7. Project cost per
owner-producer (0-3 points),
8. Business management capabilities (0-10
points),
9. Sustainability and economic impact (0-15 points),
10.
Innovation (including renewable energy (0 or 10 points),
11. Type of
applicant (0 or 8 points),
12. Administrator points (up to 5 points, but not
to exceed 10% of
the total points awarded for the other 10
criteria).

Working Capital grants will be evaluated based on the
following
criteria:
1. Business viability (0-8 points),
2. Customer
base/increased returns (0-8 points),
3. Commitments and support (0-5
points),
4. Management team/work force (0-8 points),
5. Work plan/budget
(0-8 points),
6. Amount requested (0 or 2 points),
7. Project cost per
owner-producer (0-3 points),
8. Business management capabilities (0-10
points),
9. Sustainability and economic impact (0-15 points),
10.
Innovation (including renewable energy (0 or 10 points),
11. Type of
applicant (0 or 8 points),
12. Administrator points (up to 5 points, but not
to exceed 10% of
the total points awarded for the other 10 criteria).