Washington D.C. -, Jan 24, 2014 -- Agriculture Secretary Tom Vilsack today announced that USDA is investing in rural businesses to help create jobs and spur economic development in Iowa.
“These investments will help businesses expand, help rural communities grow their economies and help support the community-based development goals of the Obama administration,” Vilsack said. “USDA is providing loans and grants to our local partners who can leverage this money with funds from other sources for projects that will have broad economic impacts.”
The funding is being provided through USDA’s Rural Economic Development Loan and Grant (REDLG) program and the Rural Business Enterprise Grant (RBEG) program.
Under the REDLG program, USDA provides zero-interest loans to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. These revolving loan funds broaden the program’s reach and create a multiplier effect for its impact. The RBEG program promotes the development of small and emerging businesses in rural areas.
In Iowa, a $300,000 REDLG grant was awarded to Franklin Rural Electric Cooperative to establish a revolving loan fund. The first recipient of the fund will be Franklin County Development Association to help build a speculative building in Hampton.
A $211,000 REDLG grant was also awarded to the City of Akron to establish a revolving loan fund. The first recipient of the fund will be Akron Development Corp. to construct a speculative building in Akron.
A $464,556 RBEG grant was awarded to Community Transportation Association of America to assist transportation systems in Iowa, Nebraska, North Carolina and the Northern Mariana Islands. The Northeast Iowa Community Action Corporation, which provides public transportation services in Allamakee, Clayton, Fayette, Howard and Winneshiek Counties, is receiving technical assistance from Community Transportation Association of America to study ways to enhance the affordable and reliable public transit services it provides to residents in northeast Iowa.
Each award is contingent upon the recipient meeting the terms of the grant agreement.
Further information on programs available through USDA Rural Development is available by calling (515) 284-4663 or by visiting the agency’s web site at www.rurdev.usda.gov/ia.
USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas. Office locations include a State Office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users)