USDA supporting rural performance venues and cinemas
As we enter the Trump administration, it is difficult to predict what the future holds for the arts in America. While the arts are not heavily reliant on federal funding, we may see an increase in federal dollars directed toward rural communities in the coming years. This potential shift is supported by several factors and has notable bipartisan appeal.
Rural communities, which tend to lean Republican and will likely find support from right leaning legislators, may also benefit from progressive legislators who seek to expand their influence in areas traditionally overlooked by Democratic policies. Recognizing the impact of focusing primarily on urban culture and voters, Democrats are exploring ways to strengthen their appeal in rural America.
One example of this outreach is a recent effort by the U.S. Department of Agriculture to inform rural communities about funding opportunities for performance spaces and movie theaters. This initiative highlights a growing awareness of the importance of cultural infrastructure in fostering vibrant rural communities.
What to know:
USDA’s Rural Development department offers several programs that can support rural theaters and movie houses. One key takeaway from a recent webinar they executed is that it would be good for anyone seeking this funding to connect with and form a relationship with your state office. The state directors are presidential appointees and will turnover soon, but the Deputy Directors will remain in place.
Here's an overview of four key programs:
1. Rural Energy for America Program (REAP)
REAP provides grants and loan guarantees to rural small businesses and agricultural producers for renewable energy systems and energy efficiency improvements. Theaters can utilize REAP to install solar panels, upgrade HVAC systems, or implement energy-efficient lighting, thereby reducing operational costs.
Eligibility: Rural small businesses and agricultural producers.
Funding: Grants cover up to 25% of project costs; loan guarantees up to 75%.
Application Process: Applications are accepted year-round.
Website: REAP Program
2. Business and Industry (B&I) Loan Guarantees
The B&I Loan Guarantee program aims to improve the economic health of rural communities by bolstering the availability of private credit for businesses. Theaters can use these loans for various purposes, including business conversion, enlargement, repair, modernization, or development.
Eligibility: Businesses in rural areas, including theaters.
Funding: Loan guarantees up to $25 million.
Application Process: Applications are accepted from lenders through USDA local offices year-round.
Website: B&I Loan Guarantees
3. Community Facilities Direct Loan & Grant Program
This program provides affordable funding to develop essential community facilities in rural areas. Theaters that serve as community hubs for cultural and educational activities may qualify for funding to construct, enlarge, or improve facilities.
Eligibility: Public bodies, community-based non-profit corporations, and federally recognized Tribes.
Funding: Direct loans, grants, or a combination; terms up to 40 years.
Application Process: Applications are accepted year-round.
Website: Community Facilities Program
4. Rural Business Development Grants (RBDG)
RBDG is designed to support the development or expansion of small and emerging private businesses in rural areas. Theaters can apply for grants to fund technical assistance, training, and other activities leading to business development.
Eligibility: Public bodies, government entities, federally recognized Tribes, and non-profit organizations.
Funding: No maximum grant amount; smaller requests are given higher priority.
Application Process: Complete applications must be received by 4:30 p.m. local time on February 28, 2025, in the USDA RD State Office for the state where the project is located.
Website: RBDG Program
Success Stories
Zeus Digital Theater in Waynesboro, Virginia: Utilized REAP to install a 241 kW solar power system, significantly reducing energy costs.
Egyptian Theatre in Coos Bay, Oregon: Received a grant through the Community Facilities Program to upgrade its video and audio systems, preserving the historic theater as a performing arts center.
These programs offer valuable opportunities for rural theaters to enhance their facilities, improve energy efficiency, and contribute to the cultural vitality of their communities. For detailed guidelines and application procedures, visit the respective program websites or contact your local USDA Rural Development office.