Section 285.352. Application, submittal, election criteria, scoring, and decision process.

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.

History: 2002 AACS; 2006 AACS.