The 2014 Farm Bill recognized the economic development and wealth-building opportunities of cooperatives by requiring that Federal agencies and cooperative organizations foster and coordinate on cooperative development. Federal partners include agencies with jurisdiction over cooperatives and with programs that cooperative businesses can use. The Agriculture Department, the Internal Revenue Service, the Justice Department’s Antitrust Division, the Labor Department, and the Department of Housing and Urban Development are all agencies with direct jurisdiction over cooperatives. The Small Business Administration is required under the Main Street Employee Ownership Act to enter agreements with Small Business Development Centers (SBDCs) to conduct training and provide information and resources on employee ownership through cooperatives. Other agencies have programs, information, and/or tools that cooperatives can access depending on the cooperative’s business. States and private sector cooperative organizations are also partners and are encouraged to be active participants in the Interagency Working Group. If your organization is not included here, please contact us at CoopInfo@usda.gov .
Federal Partners
Health and Human Services Office of Minority Health
The HHS Office of Minority Health is dedicated to eliminating health disparities faced by racial and ethnic minority populations. The agency maintains publications on health profiles for minority populations and information on cultural competency. OMH grants are available to nonprofits, universities, hospitals and medical centers, local governments, researchers, students, and some small businesses and individuals.
Health and Human Services Substance Abuse and Mental Health Services Administration
The Substance Abuse and Mental Health Services Administration leads public health efforts to advance behavioral health and improve the lives of individuals including veterans living with mental and substance use disorders. SAMHSA's practitioner training offers tools, training, and technical assistance to practitioners in the fields of mental health and substance use disorders. SAMHSA provides extensive behavioral health information; its grants generally are awarded to state, local, tribal, and nonprofit entities.
Housing and Urban Development
The Department of Housing and Urban Development has jurisdiction over cooperative housing issues including property conversions to cooperative housing and cooperative housing mortgage insurance. The HUD Secretary is authorized under the National Housing Act 12 USC section 1715e to appoint a Special Assistant for Cooperative Housing. HUD's Section 108 Loan Guarantee Program can fund housing, public facility, and infrastructure projects through intermediaries that can be used by cooperatives.
Internal Revenue Service
The Internal Revenue Service administers the Federal cooperative tax rules, processes Form 1120-C, the U.S. Income Tax Return for Cooperative Associations (review instructions for 1120-C) and provides publications to assist cooperatives with tax planning. IRS employees draft regulations interpreting the Internal Revenue Code and for a fee issue private letter rulings on cooperatives’ tax situations. Agricultural marketing and supply cooperatives that would like to receive special deductions beyond those received by nonexempt cooperatives must meet certain organizational and operational standards and file Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code (review instructions for Form 1028).
Justice Department Antitrust Division
The Justice Department has jurisdiction over the Capper Volstead Act, which provides a limited exemption for agricultural cooperatives from antitrust liability. The Capper Volstead Act allows farmers to unite in cooperative associations to collectively market their products.
Labor Department Employee Benefits Security Administration
The Labor Department Employee Benefits Security Administration Participant Assistance and Outreach Program educates participants, beneficiaries and plan sponsors about their rights and obligations under employee benefit laws. EBSA also ensures that participants and beneficiaries have access to plan documents filed with the Labor Department so that they can more easily access their benefits. EBSA national and field offices offer individualized participant assistance. EBSA also provides rulings and opinions on compliance with the Employee Retirement Income Security Act to plan participants and sponsors.
Labor Department Employment and Training Administration
The Labor Department Employment and Training Administration provides workforce information and administers federal government job training and federal grants to states for public employment service programs. These services are primarily provided through state and local workforce development systems. Their Office of Workforce Investment provides workers with job search assistance and training services including work-based learning. OWI programs also help connect employers with skilled workers.
Labor Department Occupational Safety and Health Administration
Labor Department's Occupational Safety and Health Administration sets and enforces workplace safety standards and provides training, outreach, education and compliance assistance. Cooperatives must comply with all applicable OSHA standards and keep their workplace free of serious recognized hazards.
Labor Department Wage and Hour Division
The Labor Department Wage and Hour Division enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD provides resources and information to assure workers receive proper pay including compliance assistance toolkits, posters, fact sheets, and presentations.
Northern Border Regional Commission
The Northern Border Regional Commission is a Federal-State partnership for economic and community development within distressed counties of Maine, New Hampshire, Vermont, and New York. The NBRC provides Federal funds for economic development projects. Applicants generally are governmental entities and nonprofits; cooperatives much request funding from these intermediary organizations.