Current through Vol. 24-16, September 15, 2024
Rule 2.
(1) The
department may conduct a grant program using monies from the agricultural
development fund pursuant to the purposes and provisions of the act and may
utilize up to 5% of the fund for administrative support of grant processing and
compliance. The program shall be a competitive grant program and applicants
shall make an application for monies from the fund pursuant to the act and
these rules.
(2) An application for
a grant from the agricultural development fund shall be made on a form or
format prescribed by the department for the purpose or purposes described in
the act.
(3) Not less than 60 days
before the application deadline, as determined by the director, the department
shall make a public notification of the grant program, including information on
the application form and application instructions that include the grant
evaluation criteria. The director may indicate certain priority program
initiatives or classes of agricultural commodities and products in the
application instructions based upon programmatic or funding changes for each
fiscal year.
(4) An application for
a grant shall be directed into 1 of the following 5 program categories:
(a) Detailed business plan development that
incorporates a specific marketing strategy and specifically outlines the
working capital and financial needs, management structure, construction,
production, marketing, and distribution needs.
(b) Market research and/or market development
project for a product(s) and/or service(s) prepared by an industry
consultant.
(c) Innovative
technology or technical assistance, including feasibility studies, that will
enhance and support the commercialization of value-added products.
(d) Upgrading, enhancements, and acquisitions
to buildings, equipment, utility modifications and improvements, transportation
installations, telecommunications infrastructure, or other infrastructure
improvements.
(e) Facility purchase
and/or construction, including property and/or land acquisition and assembly,
demolition, and site development.
The department may apportion available grant funds in any
manner for the 5 program categories in the application instructions.
(5) The department may
update the application instructions each fiscal year. The department may also
issue amended or subsequent application instructions after the initial
application deadline based upon priority program initiatives, programmatic, or
funding changes in a given fiscal year.
(6) The application review process shall
proceed as follows:
(a) Upon receipt of an
application, the department shall determine if the application is complete or
is lacking necessary information. If the application is found to be complete,
the department may forward the application, if appropriate, to the joint
evaluation committee. If the application is found to be incomplete, the
department may reject the application or request additional
information
(b) The department's
determination to approve or reject a completed application shall be based on
the selection criteria and scoring system in subrules (8) to (12) of this rule.
The director may appoint a joint evaluation committee for its review and
scoring of the applications. The joint evaluation committee may divide into
subcommittees. The joint evaluation committee or subcommittees shall evaluate
and rank all applications based on the selection criteria and scoring system in
subrules (8) and (12) of this rule. The joint evaluation committee shall have
relevant business, management, or professional expertise. A joint evaluation
committee subcommittee that is evaluating and ranking applications based on the
selection criteria and scoring system shall be made up of nonapplicants and
parties who do not have a conflict of interest. Each complete application shall
receive a score and rank from the joint evaluation committee together with a
recommendation to approve the application, reject the application, or request
additional information.
(7) The department review and approval
process shall be completed within 90 days of the established application
deadline.
(8) An application for a
grant for business plan development shall be evaluated according to all of the
following selection criteria:
(a) Expected
benefit to the Michigan agricultural and food industry and the local economic
impact. A score of 0 to 20 points will be awarded based on perceived
benefit.
(b) Analysis of proposed
project in terms of business and market planning. A score of 0 to 20 points
will be awarded based on the perceived benefit of a business development
plan.
(c) Clear project proposal
with specific, measurable outcomes. A score of 0 to 50 points will be awarded
based on the clarity of the proposal.
(d) A score of 0 to 10 points will be awarded
based on the level of matching funds. In-kind contributions shall not be
counted as match.
(9) An
application for a grant for market research or market development projects
shall be evaluated according to all of the following selection criteria:
(a) Expected benefit to the Michigan
agricultural and food industry and the local economic impact. A score of 0 to
20 points will be awarded based on perceived benefit.
(b) Analysis of proposed project in terms of
business and market planning. A score of 0 to 20 points will be awarded based
on the perceived benefit of market research or market development.
(c) Clear project proposal with specific,
measurable outcomes. A score of 0 to 50 points will be awarded based on the
clarity of the proposal.
(d) A
score of 0 to 10 points will be awarded based on the level of matching funds.
In-kind contributions shall not be counted as match.
(10) An application for a grant for technical
assistance shall be evaluated according to all of the following selection
criteria:
(a) Expected benefit to the Michigan
agricultural and food industry and the local economic impact. A score of 0 to
20 points will be awarded based on perceived benefit.
(b) A current business plan including the
added benefit of the technical assistance. A score of 0 to 30 points will
awarded for the benefit of the technical assistance to the business
plan.
(c) Clear project proposal
with specific, measurable outcomes. A score of 0 to 40 points will be awarded
based on the clarity of the proposal.
(d) A score of 0 to 10 points will be awarded
based on the level of matching funds. In-kind contributions shall not be
counted as match.
(11)
An application for a grant for upgrades and enhancements shall be evaluated
according to all of the following selection criteria:
(a) Expected benefit to the Michigan
agricultural and food industry and the local economic impact. A score of 0 to
20 points will be awarded based on perceived benefit.
(b) A current business plan including the
added benefit of the upgrades and enhancements. A score of 0 to 30 points will
be awarded based on the business plan.
(c) Clear project proposal with specific,
measurable outcomes. A score of 0 to 40 points will be awarded based on the
clarity of the proposal.
(d) A
score of 0 to 10 points will be awarded based on the level of matching funds.
In-kind contributions shall not be counted as match.
(12) An application for a grant for facility
and/or land assistance shall be evaluated according to all of the following
selection criteria:
(a) Expected benefit to
the Michigan agricultural and food industry and the local economic impact. A
score of 0 to 20 points will be awarded based on perceived benefit.
(b) A current feasibility study and business
plan. A score of 0 to 40 points will be awarded based on the feasibility study
and business plan.
(c) Clear
project proposal with specific, measurable outcomes. A score of 0 to 30 points
will be awarded based on the clarity of the proposal.
(d) A score of 0 to 10 points will be awarded
based on the level of matching funds. In-kind contributions shall not be
counted as match.
(13)
The director of the department shall have final approval of grants made under
the act and the department shall provide grants for reimbursement of approved
expenses incurred by the grantee which may be divided into partial
payments.
