USDA: Funding available for rural development

Roosevelt County Community Development Corp. Director Doug Redmond says he has a proposal to help stimulate the local economy.

He was just waiting on the U.S. Department of Agriculture to help come up with the money.

The USDA's Department of Rural Development announced on Tuesday that grant funding is now available for rural development in New Mexico through its Rural Business Enterprise Grant program. Redmond sees the announcement as his agency's opportunity.

"We are going to apply for one, contingent on the board approving it," Redmond said Wednesday. "I'm speaking to the board next week."

Redmond has plans to set up a revolving loan fund to do some micro-lending out of the RCCDC

"I had experience in the past with this in Georgia. It's a really good program that we can utilize," Redmond said, referring to his time as a city and county manager in Georgia prior to accepting his position in Portales. "We can use those for startup businesses."

Ernie Watson with the USDA said that's precisely what the grant program is intended for, to boost the economy of rural New Mexico.

According to the USDA's press release, RBEG funding is made available to municipal agencies and nonprofits in communities of 50,000 or less.

Application will be accepted for a range of project proposals, but certain projects will receive discretionary points if they support the agency's goals in areas including renewable energy, local food systems and value-added agriculture, support of cooperatives, and underserved populations.

Particularly in this area, business programs in impoverished counties, such as Roosevelt County, will also be considered, according to the press release.

"The bottom line is, it's used to stimulate the economy by creating jobs," Watson said.

Through this program, he said rural communities in New Mexico have applied for funding for projects ranging from the reconstruction of a community building to an improved farmer's market.

Earlier in February, a rural community in Taos County used $81,000 in the funds to restore a historical building that was falling apart, according to Watson.

"Projects do not have to be related to agriculture," Watson said. "It's to provide a better lifestyle for rural New Mexico. It's a really flexible grant."

He added that communities often times look for funds to do a feasibility study on a proposed business or project in the area rather than borrowing money and having the business going belly-up. He hopes these communities take advantage of the opportunity and applies for these funds.

"I'd like to use this for helping entrepreneurs get started here in Portales," Redmond said about the grant. "It's another tool we can use along with LEDA (Local Economic Development Act) funds."

Gene Hendrick with the Clovis Industrial Development Corp. said he isn't sure if the local community will apply for this grant but there is a possibility.

"Some of the community would be interested in BEG funding," Hendrick said, but added that since the program was just announced, he hasn't heard anything yet.

According to the press release, the deadline for application is April 12.