USDA holds workshop for grants
IMPERIAL – California United States Department of Agriculture (USDA) Rural Development Office held a funding information workshop with State Director Maria Gallegos Herrera, which focused on the Value Added Producer Grant (VAPG) and Rural Energy for America Program (REAP).
Both of these funding programs are designed to help improve rural and agricultural communities throughout the state through better market opportunities and through improved infrastructure, according to a presentation during the workshop by Dan Johnson, business and cooperative programs director for USDA.
Johnson and Gallegos presented the programs at AgWest Farm Credit in its Ag Center Room on Thursday, March 16, offering support to a room full of farmers and business owners who were looking to expand their business.
“I am so excited to be here, and to talk to you all about these two programs … Imperial County remains one of the USDA’s top priorities,” Gallegos said.
According to their presentation, VAPG helps agricultural producers generate new products, create marketing opportunities, and increase producer income by funding working capital expenses such as processing costs, marketing, advertising, inventory and salaries.
There were two types of grants through this program, a planning grant to pay a qualified consultant for development of feasibility study, marketing and business plan related to the processing, or marketing of a value-added product.
The other grant, according to the presentation, is a Working Capital Grant which will pay eligible project expenses related to the processing and/ or marketing of a value-added product.
Fiscal Year 2023 has $31 million available in funding, though the grants top out at $75,000 for a planning or $250,000 for a grant to get working capital, Johnson said. The grant period is for up to 36 months but require a 1-to-1 match cash, or eligible in-kind contributions, to be used for the project.
The REAP was also discussed. REAP provides grants and guaranteed loans to small businesses and agricultural producers for renewable energy systems and energy efficiency improvements, such as equipment purchasing and installations, that can also help lower energy costs.
REAP has three types of funding: grants can cover up to 40% of total eligible project costs, loan guarantees on loans can cover up to 75% of total eligible project costs, and combined grant and loan guarantee funding can cover up to 75% of total eligible project costs.
The Value Added Producer Grant (VAPG) program has a May 11 deadline to apply, while the deadline to apply for the Rural Energy for America Program (REAP) is March 31.
“If you do intend to pursue an application, we can only consider reimbursement of expenses that you incur after you apply, so it’s important to apply first,” Johnson said.
For application assistance, please contact the Imperial Valley Business Resource Center at (760) 353-8332.