Rural Cooperative Development Grant Program (RCDG)

Providing grants for establishing and operating centers for cooperative development

Rural Cooperative Development Grants are made for establishing and operating centers for cooperative development to improve the economic condition of rural areas by developing new cooperatives and improving operations of existing cooperatives. The USDA tries to encourage and stimulate the development of effective cooperative organizations in rural America as a part of its total package of rural development efforts.

In Fiscal Year 2003, RCDG awarded grants totaling about $6.3 million to 21 applicants.

Project Examples
Examples of cooperative development activities that could be funded under this program include:

Providing services to newly developing cooperatives in its geographic area on organizational guidance, cooperative development strategies, business plans, and feasibility analyses
Arranging training on cooperative organization and management skills
Developing expertise in financial management, bookkeeping/accounting, and cooperative law to enable hands-on assistance to developing cooperatives
Evaluating the potential for development of a base of support for cooperative programs within local communities to ensure that needed leadership is mobilized

Eligibility, Uses, and Restrictions
Nonprofit corporations and institutions of higher education are eligible to receive grants.

Grants may go to eligible recipients in rural areas to form and operate centers for cooperative development — for providing education, research, and technical assistance to rural cooperatives and assisting the cooperative development process.

Grants may be awarded for up to 75 percent of the total cost of the project. The applicant must contribute at least 25 percent from nonfederal sources.

Grants are awarded on a competitive basis and are based on specific selection criteria. These criteria are published each year in Federal Register notices.

Preference will be given to applications that:

Demonstrate a proven track record in administering a national, regional, or statewide project
Demonstrate previous expertise in providing technical assistance to cooperatives in rural areas
Demonstrate the ability to assist in the retention of business
Facilitate the establishment of cooperatives and new cooperative approaches, and generate employment opportunities that will improve the economic conditions of rural areas
Demonstrate the ability to create horizontal linkages among cooperative businesses within and among various sectors in rural areas of the United States and vertical linkages to domestic and international markets
Commit to providing technical assistance and other services to underserved and economically distressed rural areas of the United States
Commit to providing more than a 25 percent matching contribution with private funds and in-kind contributions
Show evidence of transferability or demonstration value to assist rural areas outside of project area
Demonstrate that any cooperative development activity is consistent with positive environmental stewardship

Contact
James E. Haskell, Assistant Deputy Administrator
Cooperative Services National Program Office
Rural Business-Cooperative Services
Stop 3250, Room 4016 South Building
1400 Independence Ave S.W.
Washington, DC 20250-3250
Phone: (202) 720-8460; Fax: (202) 720-4641
E-mail: james.haskell@usda.gov

Internet
www.rurdev.usda.gov/rbs/coops/rcdg/rcdg.htm

Last Updated January 23, 2005