The Rural Financing Best Practices: Unlocking the Development Finance Toolbox in Rural America by CDFA explores how rural communities can leverage a wide range of tools and approaches to build on their assets, protect their resources, and make strategic investments that offer long-term benefits for residents and local businesses.

In this special edition of CDFA’s Rural Finance Update, we’ll briefly examine the case studies in the Rural Financing Best Practices. The featured case studies have embraced a variety of innovative economic development strategies including downtown redevelopment, historic preservation, land conservation, and community facilities. Click on the links to explore the case studies.

In order to keep up with the demand of their expanding business, Bear & Son Cutlery needed a new shipping center and warehouse. The building across the street needed significant work and the upgrades would not qualify for conventional business loans.

The Cheaha Bank was able to offer a credit enhancement program, managed by the Alabama Department of Economic and Community Affairs (ADECA), as part of the national State Small Business Credit Initiative (SSBCI). ADECA’s program guarantees a portion of eligible loans, providing security to lending institutions and facilitating access to capital to small businesses.

The Water Infrastructure Finance Authority of Arizona (WIFA) financed the Town of Clarkdale’s Broadway Reclamation Facility project to replace an outdated lagoon treatment system with a recycled and refurbished mechanical wastewater treatment facility.

WIFA’s low interest rates and forgivable principal allowed Clarkdale to implement the project in a cost-effective manner that benefits both the community and the ratepayers. The project has made significant improvements through sustainable infrastructure to protect water quality in the area.

Black River Technical College (BRTC) expansions were necessary to allow anticipated growth of the health and other health-related programs. The college first attempted to find conventional financing, but was unable to afford the shorter terms that the private sector offered.

USDA Rural Development was able to provide a Community Facilities Direct Loan of $8.5M and BRTC was able to contribute $2.5M to the project. BRTC upgrades are a testament to the region’s commitment to continuing long-term community development in the region.

The University of Pikeville needed room to expand to address a demand for services to educate and encourage students to establish medical practices in underserved areas of Central Appalachia.

The total cost of the University of Pikeville expansion project was $42,215,100 and came from a variety of public and private sources. The University of Pikeville expansion project provides many benefits to the community and resources necessary for growth.

The Warm Springs K-8 Academy could no longer support modern teaching tools and techniques. With broad support from the entire county—both on and off the reservation—voters overwhelmingly passed a bond measure to fund half of the cost of the new school.

The balance of the $22M school project was supported through a $6.8M USDA Rural Development Community Facility Direct Loan. This project is an example of redevelopment that preserves cultural values and heritage in the local community while creating great opportunity for the future of the tribe.

The Brooks House is a historic building located in the geographic and historic heart of downtown Brattleboro, VT. A group of local civic leaders from Brattleboro purchased the building and organized a restoration plan and financing package.

The financing package included New Market Tax Credits, federal and state Historic Rehabilitation Tax Credits, conventional financing, owner equity, and other support to transform the building into a mix of retail, office, education, and residential spaces.

In 2008, the Community Economic Revitalization Board (CERB) approved a $50K grant for a feasibility study for the Port of Columbia. The study become an implementation plan to execute the development of a Value-Added Agricultural Eco-Industrial Park called Blue Mountain Station.

As a result of the study, CERB approved an $800K loan and $200K grant to the Port of Columbia for the purchase of land to be further developed into a park designed to attract artisan and organic food processors, while encouraging culinary tourism in the area.

Understanding that the downtown was a key community asset, a group of concerned community members established a nonprofit organization dedicated to the revitalization of downtown Clendenin. The redevelopment of Clendenin School was an opportunity to address needs in the community.

The new facility, called Riverview at Clendenin School, resulted in a mixed-use facility that provides needed health care to the region as well as affordable housing for independent seniors. The project achieved a cooperative solution, which enabled the use of both USDA funding and tax credits, while also providing Cabin Creek Health Care to retain long-term control over their leasehold space.

In 2011, the Crossing Rivers Health board of directors announced a bold and visionary decision to build a new hospital. The new 105-acre location has improved access for rescue vehicles, visitors, and patients, as well as space to expand and add services for future growth.

Crossing Rivers Health was awarded a $32.4M Community Facility Direct Loan from USDA, received $10M from hospital cash reserves, assets, and donor contributions, and $7.6M in tax-exempt financing provided through local bank placement bonds.

In 2010, the City of Powell received a $450K Business Committed Grant to construct a new building to facilitate the Gluten Free Oats expansion project. The expansion was intended to allow the business to complete the cleaning, rolling, and packaging processes at their operation in Powell.

Resulting revenues from the lease agreement will be used by the City of Powell to create a revolving loan fund and add to the City’s Economic Development Fund for special community projects such as infrastructure, park development, and projects identified by community interest groups.