This directory provides descriptions and contact information for a number of
organizations and web sites that can provide resources to banks interested in
lending, investing, or providing retail financial services in rural
communities. These activities are organized under following:
Commercial Lending
USDA Rural Development
Business and Industry Guaranteed Loans
(Community Developments Fact
Sheet, February 2010) Learn about a program that guarantees loans made
by eligible lenders to rural businesses
The
National Council of State Agricultural Finance Programs
(NCOSAFP) provides national representation for states that operate finance
programs for farmers, ranchers and the agricultural industry. Organized in
November 1984, the NCOSAFP is a non-profit organization that provides a forum
for sharing ideas and serves as an information clearinghouse for its member
state agencies and the general public they serve. The council is also involved
in the promotion and support of rural economic development programs. Through
the Aggie Bond program, the participating state coordinates
the creation of a bond that allows lenders to earn federally-tax exempt
interest income on loans to eligible beginning farmers and ranchers.
USDA Business and Cooperative Programs
- Promoting a dynamic business environment in rural America is the goal of
Rural Business-Cooperative Service (RBS), Business Programs (BP). BP works in
partnership with the private sector and community-based organizations to
provide financial assistance, through grants and loans, and business planning.
BP helps fund projects that create or preserve quality jobs and/or promote a
clean rural environment. The financial resources of RBS BP are often leveraged
with those of other public and private credit source lenders to meet business
and credit needs in underserved areas. Recipients of these programs may include
individuals, corporations, partnerships, cooperatives, public bodies, nonprofit
corporations, Indian tribes, and private companies.
USDA's Business and Industry Loan Guarantee Program
provides business and industry loan guarantees up to 90 percent of a loan made
by a commercial lender. Loan proceeds may be used for working capital,
machinery and equipment, buildings and real estate, and certain types of debt
refinancing. The primary purpose is to create and maintain employment and
improve the economic climate in rural communities.
Community Development Financial Institutions (CDFI) Fund stimulates
the creation and expansion of CDFIs by providing incentives to traditional
banks and thrifts through the Bank Enterprise Act awards program. The CDFI Fund
also provides relatively small infusions of capital to institutions that serve
distressed communities and low-income individuals. Technical assistance grants
are also provided to strengthen the capacity of community development financial
institutions.
Small
Business Administration (SBA) administers direct loan and
loan guarantee programs for developing and expanding small businesses.
Additionally, the SBA administers the Small Business Development Centers
(SBDCs) designed to offer business development assistance to entrepreneurs.
SBA's Web site contains information on:
Information on the SBA 7(a)
Loan Guarantee Program
Information on SBA Certified
Development Company Section 504 Program
Info on Small Rural Lender Advantage
Community Revitalization
USDA
Rural Community Empowerment Program - This Web page
describes activities and accomplishments of participating rural communities,
and offers access to resources that may be helpful to all rural communities
that seek to enhance the quality of their futures.
USDA Community Facilities Guaranteed Loan Program (CFGLP)
- Through the CFGLP, USDA Rural Development partners with private lenders to
finance essential public facilities in rural areas. The guarantee permits a
reduction in lender capitalization requirements, may meet community
reinvestment act requirements, and may be sold on the secondary market.
Borrowers under the CFGLP are public entities such as municipalities, counties,
and special-purpose districts, as well as nonprofit and tribal governments.
Community facility loans or bonds, made to develop or improve essential
community facilities, may be guaranteed up to 90 percent.
Rural Economic Area Partnership Zones - USDA sponsored
pilot for rural revitalization and community development called Rural Economic
Area Partnership (REAP) Zones. The REAP Initiative was established to address
critical issues related to constraints in economic activity and growth, low
density settlement patterns, stagnant or declining employment, and isolation
that has led to disconnection from markets, suppliers, and centers of
information and finance. Focusing on economic development planning and the
formation of public/private partnerships, there are five REAP Zones located in
underserved rural areas. The benefits of REAP Zones include: improving the
viability of the local community, assisting the local community in developing
cooperative strategies to expand community functions, and providing financial
and technical assistance to implement citizen-based strategic plans.
Federal
Enterprise Zone and Empowerment Communities are programs
providing special financial incentives for businesses that locate in certain
designated areas. This website contains a listing of Empowerment Zones and
Enterprise Communities located in rural areas
National
Main Street Center has been working with communities
across the nation since 1980 to revitalize their historic or traditional
commercial areas. Based in historic preservation, the Main Street approach was
developed, by the National Trust for Historic Preservation, to save historic
commercial architecture and the fabric of American communities' built
environment, but has become a powerful economic development tool as well.
Federal Home Loan Bank:
Programs for Community Investments
Community Developments Fact Sheet describes a variety of programs that
can finance housing and other rural development projects.
Farm Service Agency
Loans for Beginning Farmers and Ranchers
- The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSM) makes
and guarantees loans to begriming farmers who are unable to obtain financing
from commercial lenders.
General Information
Recession's
Rural Impacts Summarized Rural America At A Glance, 2009
Edition describes the effects of the current recession on rural America,
including employment, homeownership, and poverty, and is available at
http://www.ers.usda.gov/Publications/EIB59/ or from USDA,
1-800-999-6779.
Guidebook
Published for ACS Rural Data A Compass for Understanding
and Using American Community Survey Data: What Users of Data for Rural Areas
Need to Know is intended to introduce the American Community Survey to those
who use rural social, economic, and housing data. ACS will provide regularly
updated data that can be updated frequently and will replace some of the data
previously provided in the decennial Census.
USDA Rural Development Housing Programs 2008, produced by
the Housing Assistance Council (HAC), shows that USDA obligated approximately
$8.9 billion in Fiscal Year 2008 for the production, repair, or support of over
200,000 units of affordable housing for low- and moderate-income families in
rural areas. Much of the information in this report derives from HAC
tabulations of program data provided by USDA. Click here for the summary report.
USDA
Updated State Data Sheets This site has the
Economic Research Service's State Fact Sheets, which contain data on
population, income, poverty, unemployment, and agriculture characteristics,
have been updated with 2007 figures.
Understanding Employer
Assisted Mortgage Programs: A Primer for National Banks
(August 2007) Abstract: This edition of OCC's Community Development Insights
examines the primary risks and regulatory considerations associated with
employer assisted mortgages. The report illustrates how lenders can implement
their own successful employer assisted programs or work with other employers to
create such initiatives. The paper also discusses how banks participating in
these programs may meet their Community Reinvestment Act obligations by
providing mortgages to low- or moderate-income homebuyers or purchasers of
properties in low- or moderate- income neighborhoods.
Foreclosure
Prevention: Improving Contact with Borrowers
(June 2007) Abstract: This edition of OCC's Insights highlights best practices
loan servicers are using to improve their contact rate with delinquent mortgage
borrowers. These best practices include, but are not limited to, the use of
sophisticated scoring models, customer friendly approaches, partnerships with
nonprofit credit counselors, and web-based information on workout options.
Updated Congressional District Profiles
The National Low Income Housing Coalition (NLIHC) provides the following
Congressional District Profiles. Each profile pulls from a variety of sources
and illuminates several dimensions of housing affordability for renter
households in each district, the surrounding area, and the state. Each profile
is divided into three sections: District, Constituent Areas, and States.
Seeds of Change, New farmworker housing projects open despite
growing challenges, Donna Kimura, Affordable
Housing Finance (January 2008). This article provides insight into farmworker
housing, both the need for more housing and the challenges of such housing.
Beyond the Farm, David Dangler
(2007). New trends in rural community development make the work of rural
community development corporations appear more in line with their big-city
counterparts.
OCC's Rural Development Teleseminar (September 25, 2003)-
PowerPoint presentation and
transcript
from an OCC teleseminar on financing rural development. Included
presentations by Julie Cripe, President and COO, OMNIBANK, N.A., Texas, William
Glover, Assistant Deputy Comptroller, OCC and Karen Tucker, Senior Compliance
Specialist, OCC.
Community Developments "Shaping the
Future of Rural America-Banks and Economic Development"
OCC's Fall 2002 Community Developments newsletter includes articles
that address how financial institutions are building partnerships with
community organizations and others that lead to increased access to commercial
and job generating economic development credit in rural communities.
OCC's Native American Banking Resource Directory
- This directory provides descriptions and contact information for a sampling
of organizations that can offer resources to banks interested in lending,
investing, or providing retail financial services in Indian country.
Federal Reserve Bank of Kansas City's Regional, Public and
Community Affairs Division: The Regional, Public and Community Affairs
Division: The RPCA Division replaces the Center for the
Study of Rural America in the Bank's organizational structure, highlighting the
Division's larger research staff focused on a common research agenda. Broadly
defined, division economists study the factors underlying growth and
development in the regional economy, spanning rural, suburban, and urban
places.
National
Association of Development Organizations (NADO) provides
training, advocacy, and information for regional development organizations
primarily in rural communities. NADO also provides a network for its
members to share ideas and innovative projects through its Economic Development
Digest, which highlights best practices in rural economic development.
National Rural Development Partnership (NRDP) is a
national initiative administered by USDA which uses state collaboratives to
bring together key rural players in their states to address critical rural
community concerns. The NRDP highlights effective strategies for rural
community and economic development and also maintains a web clearinghouse on
rural development.
USDA's
Research, Education, and Economics (REE) identifies,
develops, and manages programs to support university-based and other
institutional research and education that supports agriculture and rural
communities. Programs focus on a range of topics from financial literacy to
supporting small businesses.
USDA National Institute of Food and Agriculture:
Extension, research, and educational programs help individuals and families
build financial assets instead of debt. Extension provides research-based
information and education via courses, Web-based curricula, and other
educational outlets for people to acquire knowledge, skills, and motivation to
build financial security. The emphasis of programs is on behavioral
change-developing a financial plan, managing risk of loss, reducing household
debt, and saving and investing to meet life goals.
Public Facilities Lending
Rural
Community Assistance Corporation (RCAC) is a nonprofit
organization that assists rural communities in 12 western states. They build
partnerships, advocate for small communities and develop capacity, especially
for the development of public facilities.
USDA
Rural Development (RD) provides financial program support
for the development of essential public facilities and services such as water
and sewer systems, housing, health clinics, emergency service facilities and
electric and telephone service. RD supports economic development by
guaranteeing loans to businesses through banks and community-based lending
pools. RD also provides technical assistance to help agriculture and
other cooperatives get started and improve membership services. Technical
assistance is also provided to communities in order to assist them in achieving
community empowerment.
Rural Development Farm
Loan Programs
Farmer
Mac is America's secondary market for first mortgage
agricultural real estate loans, and was created by Congress to improve the
availability of mortgage credit to America's farmers, ranchers and rural
homeowners, businesses and communities. Farmer Mac does this primarily by
purchasing qualified loans from lenders, thereby replenishing their source of
funds to make new loans.
USDA's Farm Service Agency offers direct and
guaranteed farm ownership and operating loans to farmers who are temporarily
unable to obtain private, commercial credit.
Rural Housing
Difficult Development Areas (DDA) And Qualified Census Tracts Designated
(QCT). US Department of Housing and Urban Development identifies
DDAs and QCTs for the Low Income Housing Tax Credit. See
Federal Register, 10/6/09 or
http://www.huduser.org/datasets/qct.html. Contact Michael K. Hollar,
HUD, 202-402-5878, Michael.K.Hollar@hud.gov.
Housing Assistance Council Publication Provides Rural Foreclosure Research.
What is the Housing Foreclosure Situation in
Rural America? (October 2009) reports on available data, notes
special rural considerations, and provides recommendations, and is free at
http://www.ruralhome.org.
HUD Income Data. Estimated median family incomes and income limits for
FY2009 are available at
http://www.huduser.org/datasets/il/il09/index.html. HUD has also
developed a set of income limits specifically for projects that use Low Income
Housing Tax Credits or tax-exempt bonds. Information on limits for these
"Multifamily Tax Subsidy Projects" is at
http://www.huduser.org/datasets/mtsp.html.
Continuous Guarantee Demonstration Offered for Section 538 For
projects using Low Income Housing Tax Credits that have USDA Section 538
guarantee commitments approved in 2008 or 2009 but not yet closed, lenders can
apply to receive continuous loan note guarantees through the construction and
permanent loan financing phases. While funds last, selections will be made once
a month starting September 18 and ending in December 2009. See
Federal Register, 9/15/09. Contact Tammy Daniels, RD,
tammy.daniels@wdc.usda.gov.
FHA 203(k) Purchase/Rehabilitation Program
- FHA 203(k) is a mortgage insurance program that enables homebuyers and
homeowners throughout the country to finance the purchase or refinancing of a
house and the cost of its rehabilitation through a single mortgage. Risk to
lenders is reduced because the loan is insured at closing, prior to completion
of the rehabilitation work. FHA-approved lenders make these insured loans and
supervise the rehabilitation.
USDA Rural Rental Housing - Rural
Rental Housing Guaranteed Loans are loans that are funded by conventional
lenders (banks, mortgage companies, etc.). USDA protects the lender by limiting
the loss in the event of default. Qualified lenders are authorized to
originate, underwrite, and close loans to eligible borrowers to construct new
multi-family housing projects. Lenders may also make loans for the purchase of
an existing property where rehabilitation of at least $15,000 per unit is
needed. Rural Housing Services will guarantee the lender's loan up to 90% of
total development cost. Eligible borrowers include non-profit corporations,
public bodies, and for-profit organizations. The program targets small
communities with populations of no more than 20,000, located in non
metropolitan areas. This program is intended to fund construction, acquisition,
or rehabilitation of rural multifamily housing for low-income occupants.
Neighborhood Stabilization Program (NSP) And Hope For Homeowners Programs
(HOPE), (October 2008). Recently launched by the U.S. Department
of Housing and Urban Development, both programs were created and funded by the
Housing and Economic Recovery Act of 2008. NSP provides CDBG funds to states
and entitlement communities to buy and renovate foreclosed properties. HOPE
provides FHA insurance for refinances. For NSP details, see
http://www.huduser.org/Datasets/nsp.html or Federal Register, 10/6/08,
pp. 58329-49; contact Stanley Gimont, HUD, 202-708-3587. For HOPE, see Federal
Register, 10/6/08, pp. 58417- 26 or
http://www.hud.gov/hopeforhomeowners; contact HUD, 800-225-5342.
Community Developments "A Place to
Call Home - Financing Housing in Rural America"
OCC's Spring 2003 Community Developments newsletter includes articles
that address how financial institutions are building partnerships with
community organizations and others that lead to increased access to financing
for affordable housing in rural America.
Federal Home Loan Bank's Mortgage Partnership Finance (MPF) Program Allies
With USDA
The Mortgage Partnership Finance program of the Federal Home Loan Banks has
announced a new partnership with the U.S. Department of Agriculture's Rural
Development Program. Under the arrangement, approved FHLBanks participating in
the MPF program can purchase RHS Section 502 government-guaranteed loans from
qualified members, including commercial banks, thrifts, credit unions, and
insurance companies. USDA Rural Development Guaranteed Loans are offered to
qualifying low- and moderate-income families to purchase or refinance homes in
rural areas with a population of less than 10,000 and non-metropolitan
communities with populations of 10,000-25,000, the MPF reported. The
partnership enables the FHLBank of Chicago, which pioneered the MPF program,
and the FHLBank of Pittsburgh to buy such loans from their members as "a
competitive alternative to the secondary mortgage market." The MPF program can
be found online at
http://www.fhlbmpf.com, and the Rural Development Program can be found
at
http://www.rurdev.usda.gov.
Housing
Assistance Council (HAC) provides loans at below-market
interest rates to rural housing developers as well as technical assistance,
research, and training to public and private organizations. HAC publishes Rural
Voices, a newsletter that provides ideas on funding, planning, and building
affordable housing and livable rural communities; HAC News, a biweekly
newsletter with brief updates on topics related to rural housing and community
development; and dozens of research reports and technical manuals, most of
which are available on HAC's website.
Low Income Housing Tax Credits are used extensively in rural
areas to subsidize the cost of creating multifamily rental housing. Under the
Low Income Housing Tax Credit Program, taxpayers may take a credit against
federal income taxes for qualified rental housing development expenditures. The
OCC's Community Development Resource page includes a description of the
Low Income Tax Credit Program (Spring 2006 Community Development
Investments) and a Community Developments Fact Sheet on
Low Income Housing Tax Credits
. The OCC's Community
Developments insights paper, Low-Income Housing
Tax Credits: Affordable Housing Investment Opportunities for Banks (NR-2008-10)
(February 2008) describes how LIHTCs are used to develop affordable rental
housing and how banks can benefit from investing in LIHTC-financed projects. It
describes the two approaches for investing in LIHTCs - direct investments in
individual affordable housing projects and fund investments that have multiple
projects managed by third parties. The report outlines risks and regulatory
considerations of LIHTC investments and describes how these investments would
be considered under the Community Reinvestment Act (CRA).
Rural
LISC's mission is to build the capacity of resident-led
rural CDCs, increase their production and impact, demonstrate the value of
investing in and through rural CDCs and make the resource and policy
environment more supportive of rural CDCs and their work. Rural LISC provides
more than 70 partner organizations across the country with training, technical
assistance, and funding to address the problems rural communities face. Rural
Home Loan Partnership (RHLP) was created in 1996 by four national organizations
involved in rural housing. The purpose of the partnership is to create
affordable housing in rural communities utilizing the USDA's Section 502 Single
Family Direct Loan set-aside in partnership with financial institutions and
local community organizations. Today the RHLP has grown to 12 national and over
250 local partners cooperating to bring outreach, homeownership counseling, and
additional mortgage lending resources to rural communities throughout the
country.
NeighborWorks® America Rural Initiative (NRI)
NeighborWorks® America administers the NeighborWorks Rural Initiative which
provides funding to community development corporations and local non-profit
organizations in over 75 rural communities across the country. These
organizations provide homeownership education counseling, develop and renovate
single- and multi-family housing, and promote economic development in rural
areas across the country.
USDA Rural Housing Finance
Programs: Loan Guarantee, Leveraged Loan, and Multi-Family Loan
OCC's Community Developments Fact Sheet
USDA offers financing programs that work with the private market to finance
affordable housing. This fact sheet provides descriptive information about both
the Section 502 Loan Guarantee Program and the Section 538 Multi-Family Loan
Program, and how banks can participate in the programs.
USDA
Preservation Information Exchange (PIX) is a web site for
those interested in preserving affordable multifamily rental properties.
Last Updated: January 2010
