From left, Essex Economic Development Authority Chairman Bill Croxton and USDA Rural Development State Director Perry Hickman.
The Essex County Economic Development Authority (EDA) recently learned about the potential for USDA Rural Development to assist the local business community and other entities from Perry Hickman, Virginia’s Rural Development State Director.
Hickman, an Essex County native who continues to reside here, was the featured speaker at the EDA’s July 7 meeting.
A graduate of Virginia Commonwealth University with a Bachelor of Science Degree in Business Administration and Management with a concentration in Real Estate and Urban Land Development, Hickman was appointed to the position by President Joe Biden in March.
“We’re committed to helping rural communities build their economies and quality of life for their residents,” Hickman told the EDA. “Rural Development is a major lender in catering to the needs, growth and stability in rural communities.”
Hickman explained that there are more than 29 agencies within USDA with Rural Development being one of them.
He described Rural Development as “a three-legged stool” with more than 40 programs for loan/grant services.
The Rural Housing Service Program provides funding for single-family and multi-family housing developers and community facilities.
The Rural Business and Cooperative Program provides grants to help small businesses start and expand. This includes the Value Added Producer Program that assists agriculture producers to enter into activities that add value to their products. The Rural Energy For America Program provides assistance for energy efficiency improvements or purchases of a renewable energy system for operations.
The third leg of the program is Rural Utility Services that primarily deals with infrastructure such as water/waste disposal projects, electric and telecommunications loans that enhance those services, distance learning/telemedicine which improves education and health access.
Hickman told the EDA that Community Connect is a program that helps rural communities gain access to broadband internet services.
“That’s a big push with this administration as far as making affordable broadband available to all communities,” Hickman explained.
Regarding Rural Development’s impact on economies, Hickman reported that in fiscal year 2022 Virginia’s offices obligated over $650 million with larger projects still under review by the national office. In fiscal year 2021, more than $2 billion was obligated to Virginia projects.
Rural Development’s Virginia portfolio includes more than 35,000 loans with the majority of those in the area of housing. That makes its state portfolio totaling $13.5 billion with the national portfolio totaling $232 billion.
“If you look at the numbers for Rural Development, we’re a pretty large bank,” Hickman remarked.
Moreover, Hickman said Rural Development has identified three pathways to facilitate economic growth for rural communities.
The first priority is to assist rural communities recover from the impacts of COVID-19.
The second priority is to ensure all rural residents have equitable access to all Rural Development programs and benefits.
Reduction of climate pollution is the third priority.
Hickman, a former senior loan specialist with Rural Development, told the EDA that he previously worked with Rural Development’s Community Facilities Program which provides affordable funding to entities such as municipalities, non-profit corporations, and Federally recognized tribes.
“Through Community Facilities we funded more than 100 different types of programs such as healthcare facilities, public facilities, community support services, and public safety services,” said Hickman who noted that USDA has been utilized by the Tappahannock- Essex Volunteer Fire Department for the purchase of equipment.
Hickman also noted that he has worked with many entities throughout the country, including EDAs.
“I’ve seen counties utilize their EDAs to fund the types of facilities I have mentioned,” Hickman said. “That could very well be an opportunity for the Essex County EDA.”
Hickman did caution that the definition of “rural” varies among Rural Development’s offerings.
In the water/environmental program, rural is identified as localities with populations of 10,000 or less. The telecommunications program has a higher population threshold, while in the single family housing program the rural definition is population of 20,000 or less.
Hickman has more than 20 years of combined sales experience in mortgage lending and telecommunications services. He started his federal career with USDA Rural Development in April 2008, and he has primarily worked in the Rural Development Community Programs division to assist rural municipalities, non-profit corporations, and Tribal entities that seek federal financial assistance to enhance their ability to provide essential services for the orderly development of a rural community.
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