USDA Backs More Rural Cooperatives
What keeps a project from getting off the ground? Sometimes, procrastination might be the culprit, but often there’s a important missing piece of the puzzle. There’s some research that must be conducted or technical assistance that must be secured. Other times what’s missing is organizing community involvement and ownership of the project.
For people looking to join together in their efforts, there are new funds to support setting projects into motion. Agriculture Secretary Tom Vilsack has announced that USDA is accepting applications for grants to help rural businesses create jobs through cooperative development centers.
“Cooperative development centers are business and job incubators. They support President Obama’s goal to bring increased economic opportunities to rural communities by assisting new businesses as they create sustainable jobs,” Vilsack said. “The Obama Administration is helping create economic opportunities for rural Americans, and these centers further that effort.”
A rural business need not only look like a farm. It might take on many shapes. For example, through the structure of the cooperative, the Last Chance Café would have closed without help from the development center which was the recipient of a USDA Rural Development Rural Cooperative Development Grant (RCDG). The restaurant reopened with reinvigorated community support. Now this landmark destination along Interstate 15 has mobilized the community into baking pies and helping bread rise. The structure of the cooperative helped the restaurant become something vibrant, while generating jobs for the community.
Under the RCDG program, grants of up to $225,000 may be awarded to colleges, universities and non-profit groups to create and operate centers that help individuals or groups establish, expand or operate rural businesses, especially cooperatives. Grants may be used to conduct feasibility studies, create and implement business plans, and help businesses develop new markets for their products and services.
Through this notice, USDA may award up to $7.4 million in grants. Funds may finance up to 75 percent of the cost of establishing and operating the cooperative centers. Recipients must match 25 percent of the total project cost. Applications are due July 22, 2011.