Rural Business-Cooperative Service
Encyclopedia
The Rural Business-Cooperative Service (abbreviated as "RBS") is one of three agencies within USDA Rural Development (along with the Rural Housing Service
and Rural Utilities Service
) responsible for administering various economic development programs to rural communities in the United States and its territories. Because these three agencies are closely aligned, they are commonly referred to as the USDA Rural Development, Business & Cooperative Programs.
The mission of the RBS is "to enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace."
They meet these goals by:
In addition to supporting rural business, economic, and cooperative development, the Agency has become increasingly involved in renewable energy
and value-added agriculture
since the enactment of the 2002 Farm Bill
.
. All three posts are appointed by the President of the United States
.
Business & Cooperative Programs staff are headquartered in Washington, D.C.
, but the Agency has a presence in every state and U.S. territory. Typically there is a Business & Cooperative Program section associated with each USDA Rural Development State Office. These State Offices and their subordinate Area Office staff are responsible for most program delivery.
The RBS also publishes the bimonthly Rural Cooperatives
magazine. Nearly all of the Agency's programs are funded annually through Congressional appropriation as part of the U.S. Federal Government budget process.
Rural Housing Service
The Rural Housing Service is an agency of the United States Department of Agriculture . Located within the Department's Rural Development mission area, RHS operates a broad range of programs to provide:*homeownership options to individuals;...
and Rural Utilities Service
Rural Utilities Service
is an agency of the United States Department of Agriculture , one of the federal executive departments of the United States government charged with providing public utilities to rural areas in the United States via public-private partnerships...
) responsible for administering various economic development programs to rural communities in the United States and its territories. Because these three agencies are closely aligned, they are commonly referred to as the USDA Rural Development, Business & Cooperative Programs.
The mission of the RBS is "to enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace."
They meet these goals by:
- Investing financial resources and providing technical assistance to businesses and cooperatives located in rural communities.
- Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity.
In addition to supporting rural business, economic, and cooperative development, the Agency has become increasingly involved in renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
and value-added agriculture
Value-added agriculture
Value-added agriculture refers most generally to manufacturing processes that increase the value of primary agricultural commodities. Value-added agriculture may also refer to increasing the economic value of a commodity through particular production processes, e.g., organic produce, or through...
since the enactment of the 2002 Farm Bill
Farm Security and Rural Investment Act of 2002
The Farm Security and Rural Investment Act of 2002, also known as the 2002 Farm Bill, includes ten titles, addressing a great variety of issues related to agriculture, ecology, energy, trade, and nutrition....
.
Organization
The Rural Business-Cooperative Service is headed by an Administrator who reports directly to the Undersecretary for Rural Development, who in turn reports to the Secretary of AgricultureUnited States Secretary of Agriculture
The United States Secretary of Agriculture is the head of the United States Department of Agriculture. The current secretary is Tom Vilsack, who was confirmed by the U.S. Senate on 20 January 2009. The position carries similar responsibilities to those of agriculture ministers in other...
. All three posts are appointed by the President of the United States
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
.
Business & Cooperative Programs staff are headquartered in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, but the Agency has a presence in every state and U.S. territory. Typically there is a Business & Cooperative Program section associated with each USDA Rural Development State Office. These State Offices and their subordinate Area Office staff are responsible for most program delivery.
Programs
- Guaranteed loans. These are "lender-driven" programs, whereby business loans (generally made by commercial banks) receive a Federal loan guarantee. The guarantee is designed to support and incentivize rural business lending and to support rural job creation and retention. The primary program in this category is the Business & Industry (B&I) guaranteed loan program.
- Direct loans. Direct loans are made to intermediary economic development groups who will in turn assist private rural business development through the re-lending of these funds. Note that the Agency does not make loans directly to for-profit businesses or individuals.
- Grants to nonprofits & public bodies. Typically these grants are made to nonprofit economic development groups, towns, or tribes who will undertake some project in support of private rural business development.
- Grants to private rural businesses & agricultural producers. These grants are narrowly targeted and competitively awarded in support of value-added agricultural ventures and in support of renewable energy and energy efficiency projects. Matching funds from 50-75% are typically required.
The RBS also publishes the bimonthly Rural Cooperatives
Rural Cooperatives
Rural Cooperatives is a bimonthly trade journal for rural cooperatives in the United States. The journal is published by the United States Department of Agriculture's Rural Business-Cooperative Service and focuses on rural agricultural cooperatives....
magazine. Nearly all of the Agency's programs are funded annually through Congressional appropriation as part of the U.S. Federal Government budget process.