[United States Government Manual]
[May 31, 1996]
[Pages 117-118]
[From the U.S. Government Publishing Office, www.gpo.gov]



Alternative Agricultural Research and Commercialization Center

As an independent entity within USDA, the Alternative Agricultural 
Research and Commercialization Center (AARC) provides and monitors 
financial assistance for the development and commercialization of new 
nonfood and nonfeed products made from agricultural/forestry 
commodities. By law, AARC is administered by a 9-member board comprising 
representatives for processing, financial, producer, and scientific 
interests.
    The Center's mission is to assist the private sector in closing the 
gap between research results and commercialization of industrial nonfood 
and nonfeed products made from farm and forestry materials. It also 
seeks to expand market opportunities through development of value-added 
industrial products and promotion of environmentally friendly products. 
Any private individual or firm may apply for assistance. While most of 
the Center's clients are small firms, nonprofit organizations and large 
businesses have also been successful applicants. Universities and 
similar institutions may participate as well.
    The Center can supply financial assistance at the 
precommercialization stage of a project--that point in a project when 
the costs are the greatest and the ability to obtain lending from 
traditional sources is the most difficult. Financial

[[Page 118]]

assistance is in the form of a repayable cooperative agreement and 
includes a repayment portion that recognizes the investment risk taken 
by AARC. Applicants are expected to provide at least a 1:1 match when 
seeking funding from AARC. The Center receives an annual appropriation 
from Congress and operates under a revolving fund. As Center-funded 
projects become profitable and reimburse AARC, the money will be 
returned to the fund to help finance future projects.

For further information, contact the Alternative Agricultural Research 
and Commercialization Center, Fourteenth Street and Independence Avenue 
SW., Cotton Annex, Second Floor Mezzanine, Washington, DC 20250-0400. 
Phone, 202-690-1634.