Here’s an announcement from the ALA Washington Office – a funding opportunity for libraries serving communities of 20,000 and less:
UNITED STATES DEPARTMENT OF AGRICULTURE
Rural Development Housing and Community Facilities Programs
Designated Funding for Public Libraries
American Recovery and Reinvestment Act Funding for Rural Libraries
Public libraries are culturally and technologically critical to the rural communities they serve. Public libraries are important to bridging the digital divide and improving the quality of life in rural America. The Secretary of Agriculture has designated $100 million of USDA’s Community Facilities funds for public libraries. The program emphasis will provide educational opportunities and improve public services in rural communities.
Public libraries enhance the economic vitality of a rural community. The construction or renovation projects for libraries will create and save numerous jobs in the construction and library service fields. The stimulus funding will help give rural communities the opportunity to improve their library facilities, enhance educational opportunities, and improve economic conditions in America’s rural communities. The $100 million will primarily be provided through the American Recovery and Reinvestment Act.
General Program Description
Community Facilities provides loans and grants to assist in the development of essential community facilities in rural areas and towns of up to 20,000 in population. USDA Rural Development is committed through its Community Facilities Loan and Grant Program in ensuring that essential facilities, such as health care clinics, police and fire stations, schools, libraries, child care centers, and etc. are readily available to all rural Americans. Direct loans from USDA can be made to applicants who are unable to obtain commercial credit. Rural Development can guarantee loans made and serviced by lenders such as banks, savings, and loans, mortgage companies which are part of bank holding companies, or members of the Farm Credit System.
Community Facilities Grants are authorized on a graduated scale. Applicants located in smaller communities with low populations and low incomes will receive a higher percentage of grants. Grant funding limitations are based on population and income, economic feasibility, and availability of funds.
Who May Apply?
Loans and grants are available to public entities such as municipalities, counties, and special-purpose districts, as well as non-profit corporations and tribal governments. Applicants must have the legal authority necessary for construction, operation, and maintenance of the proposed facility. They must also be financially sound and able to organize and manage the facility effectively.
Repayment of the loan must be based on tax assessments, revenues, fees, or other sources of money sufficient for operation and maintenance, reserves, and sufficient debt retirement. RD is aware that libraries are not revenue generating and depend heavily on local property taxes to maintain operations. Although there may be some challenges in developing these projects, RD will create added interest in library facilities by providing opportunities to receive grant funds that are not typically available.
How May Funds Be Used?
Funds may be used to construct, enlarge, or improve public libraries. This can include costs to acquire land needed for a facility, pay necessary professional fees, and purchase equipment required for a facility’s operation. Funds can be used to purchase shelving, furniture, computers, audio-visual equipment, distance learning equipment, and bookmobiles. A loan may be made in combination with other Community Facilities financial assistance such as a grant, applicant contributions, or loans and grants from other sources.
What Are the Terms?
The maximum term for all loans is 40 years. However, the repayment period is limited to the useful life of the facility or any statutory limitation on the applicant’s borrowing authority.
What is the Interest Rate?
Interest rates for direct loans are based on current market yields for municipal obligations, although loans for facilities impacting prime or unique farmland may require a slightly higher rate. Certain other direct loans may qualify for a lower interest rate, depending upon the median household income of the residents of the community to be served. The interest rates for guaranteed loans may be fixed or variable and are determined by the lender and borrower, subject to USDA review and approval.
What Security is Required?
Bonds or notes pledging taxes, or assessments will be accepted as security if they meet statutory requirements. Where State laws permit, a mortgage may be taken on real and personal property. Tax-exempt notes or bonds may be issued to secure direct loans, but cannot be used for guaranteed loans.
What is The Maximum Grant Assistance?
Depending on funding availability, RD plans to provide up to $500,000 in additional grant funds to each State Office through the Community Facilities American Recovery Reinvestment Act grant account for library projects.
How Are Applications Processed?
Applications are handled by USDA Rural Development field offices. Rural Development staff will be glad to discuss a community’s needs and the services available from USDA. Field staff can provide application materials and current program information, and assist in the preparation of an application. You may also visit their website at http://www.rurdev.usda.gov/rhs.
For More Information
Rural Development field office location are generally listed in the local telephone directories under the heading U. S. Government, Department of Agriculture. Interested applicants and lenders may also contact the Housing and Community Programs National Office staff at the following address:
USDA Rural Development
Community Programs Division
1400 Independence Avenue, S.W.
Washington, D.C. 20250-0700
Telephone: (202) 720-1490
Fax: (202) 690-0471
